The Stellar Development Foundation (SDF) has announced the successful implementation of the “Protocol 20” upgrade for the Stellar (XLM) blockchain network, marking the official introduction of Soroban smart contracts to the mainnet.
In a recent blog post, the SDF highlighted that the Stellar smart contracts technology stack, designed for scalability and practical application, has entered a new era following the approval of the Mainnet upgrade to Protocol 20 by Stellar network validators on February 20.
Stellar is a decentralized blockchain network designed to simplify cross-border payments and tokenization.
It aims to connect banks, payment systems, and individuals for cost-effective cross-border, cross-asset financial transactions.
The network’s cryptocurrency called the lumen (XLM), is used for paying transaction and account initialization fees.
Stellar is known for its speedy, cost-efficient, and eco-friendly transactions, which are made possible by a unique consensus protocol that sets it apart from other cryptocurrencies.
It was launched in 2014 by Jed McCaleb and Joyce Kim, and the Stellar Development Foundation, a nonprofit organization, operates it.
Stellar’s unique features include its open protocol, support for multi-currency transactions, and its focus on developing markets and use cases such as remittances and bank loan distribution.
The delay in the Protocol 20 activation, originally set for January 30, was a decision by validators who voted to defer the activation due to a bug event. This issue prompted the Stellar network validators to postpone the upgrade.
The Stellar Development Foundation (SDF) promptly addressed the situation by providing an update.
In response to the bug event, validators collectively decided to adopt a phased activation strategy, rescheduled to commence on February 20.
The phased rollout strategy for Soroban smart contracts served the purpose of affording validators and other network participants ample time to observe and evaluate the impact of the new functionality on the network.
This includes monitoring aspects such as performance, security, and stability at each step of the activation.
In pursuit of its vision to expand payment service around emerging markets, Stellar partnered with MoneyGram in 2023 to launch a non-custodial digital wallet on the Stellar blockchain network.
The wallet was built by Cheesecake Labs in partnership with MoneyGram and was offered as a zero-fee service until June 2024.
The wallet is designed to enable consumers around the world to leverage stablecoin technology to seamlessly move from fiat to digital currency, and to fiat again, all with the same global brand they trust.
