The Stellar blockchain has initiated the phased rollout of its “Protocol 20” upgrade, which will introduce Ethereum-style smart contracts to the platform. The upgrade, known as the Soroban project, was delayed by three weeks due to a bug that was discovered. However, the Stellar Development Foundation has confirmed that the upgrade is now underway. Validators have voted for the mainnet upgrade, and in the coming weeks, builders and projects will begin deploying on the mainnet. Once stress-tested and deemed satisfactory, decentralized applications (dApps) will be launched for public use. This upgrade marks a new era for the Stellar blockchain and its smart contract capabilities. Traders are speculating whether this facelift will inject fresh energy into Stellar’s native XLM tokens.
Table of Contents
Background on Stellar and Soroban
Introduction to Stellar blockchain
The Stellar blockchain is a decade-old payments-focused blockchain that was created as a fork of the Ripple protocol in 2014. It is known for its fast and low-cost transactions, making it ideal for cross-border payments and remittances. Stellar’s native cryptocurrency is called XLM or lumens.
Overview of Soroban project
The Soroban project is a major upgrade to the Stellar blockchain that aims to add support for Ethereum-style smart contracts. Smart contracts are self-executing contracts with predefined conditions that automatically execute when those conditions are met. This upgrade will bring programmability to the Stellar blockchain and open up a wide range of possibilities for developers and users.
Purpose of the Protocol 20 upgrade
The purpose of the Protocol 20 upgrade is to enhance the capabilities of the Stellar blockchain by adding support for smart contracts. This upgrade will enable developers to build decentralized applications (dApps) on the Stellar blockchain, similar to what can be done on the Ethereum blockchain. It is expected to attract more developers and projects to the Stellar ecosystem and increase the usability and functionality of the blockchain.
Phased Rollout Process
Explanation of phased rollout
The phased rollout process is a careful and gradual deployment of the Protocol 20 upgrade to the Stellar blockchain. This approach allows for thorough testing and monitoring at each stage to ensure a smooth transition and minimize the risk of any potential issues or bugs.
Validators’ role in the rollout
Validators play a crucial role in the rollout of the Protocol 20 upgrade. They are responsible for validating and verifying transactions on the blockchain. During the phased rollout, validators will gradually increase the limits for Soroban transactions, paving the way for the deployment of projects and dApps on the mainnet.
Gradual increase of limits for Soroban transactions
As the phased rollout progresses, validators will gradually increase the limits for Soroban transactions. This gradual increase ensures that the network can handle the increased demand and activity associated with the deployment of smart contracts. It allows for stress-testing of the network and ensures its stability and scalability.
Deployment on Mainnet
Builders and projects on testnet
Prior to the deployment on the mainnet, builders and projects have been actively developing and testing their applications on the Stellar testnet. The testnet provides a safe and controlled environment for developers to experiment and ensure the functionality and compatibility of their projects with the upgraded Stellar blockchain.
Deployment process on mainnet
Once the projects and dApps have been thoroughly tested on the testnet, they will be deployed on the mainnet. The deployment process involves migrating the projects from the testnet to the mainnet, ensuring a seamless transition and continuity of operations. This process is carefully coordinated and monitored to minimize any disruptions or issues during the deployment.
Stress-testing the network
Before the deployment of projects and dApps on the mainnet, the network undergoes stress-testing to ensure its stability and performance under increased usage. Stress-testing involves subjecting the network to high volumes of transactions and activity to identify any potential bottlenecks or issues. This process helps in optimizing the network and ensuring its readiness for the increased demand associated with the Protocol 20 upgrade.
Launch of dApps
Plan for launching decentralized applications (dApps)
The launch of dApps on the Stellar blockchain is a significant milestone in the Protocol 20 upgrade. With the support for smart contracts, developers will be able to deploy decentralized applications that leverage the capabilities of the Stellar blockchain. This opens up a wide range of possibilities for various use cases, including finance, supply chain, identity management, and more.
Timeline for dApp launch
The timeline for the launch of dApps on the Stellar blockchain may vary depending on the readiness of the projects and their compliance with the network’s requirements. However, it is expected that once the network has been stress-tested and the ecosystem is satisfied with the stability and performance, dApps will gradually start launching for users to utilize.
Potential impact on the ecosystem
The launch of dApps on the Stellar blockchain is expected to have a significant impact on the ecosystem. It will attract more developers and projects to build on the Stellar blockchain, leading to an expansion of the ecosystem and increased adoption. The addition of smart contracts will also enhance the functionality and usability of the blockchain, making it more attractive for businesses and users.
Comparison to Ethereum
Similarities and differences between Stellar and Ethereum
Stellar and Ethereum are both blockchain platforms that support the development of decentralized applications and the execution of smart contracts. However, there are some key differences between the two.
Stellar is primarily focused on payments and cross-border transactions, while Ethereum has a broader scope and supports a wide range of applications beyond payments. Stellar offers fast and low-cost transactions, whereas Ethereum has faced scalability issues due to high usage and congestion. Additionally, Stellar uses a unique consensus algorithm called Stellar Consensus Protocol (SCP), while Ethereum currently uses a proof-of-work (PoW) algorithm but plans to transition to a proof-of-stake (PoS) algorithm.
Advantages and disadvantages of Soroban
The Soroban upgrade brings several advantages to the Stellar blockchain. It enables the development of decentralized applications, which opens up new use cases and opportunities for developers. The addition of smart contracts also enhances the programmability and flexibility of the blockchain, making it more versatile and adaptable to different needs.
However, there are also some potential disadvantages to consider. The introduction of smart contracts may increase the complexity of the blockchain, potentially leading to security vulnerabilities or bugs. Additionally, the increased usage and demand associated with dApps may put strain on the network, requiring further scalability and optimization efforts.
Implications for developers and users
The launch of the Soroban upgrade and the addition of smart contracts have significant implications for both developers and users. For developers, it provides a new platform to build and deploy decentralized applications with the benefits of the Stellar blockchain, such as fast and low-cost transactions. It opens up opportunities for innovation and entrepreneurship.
For users, the availability of dApps on the Stellar blockchain means access to a wider range of services and applications. It allows for seamless integration with existing financial systems and processes, offering enhanced efficiency and cost-effectiveness. Users can expect more options and possibilities for managing their digital assets and engaging in various financial activities.
Speculation on XLM Tokens
Market speculation on the impact of the upgrade
The market speculation surrounding the Soroban upgrade and its impact on XLM tokens is significant. Traders and investors are closely monitoring the upgrade and its potential implications for the value and demand of XLM tokens. The addition of smart contracts and the growth of the ecosystem could attract more attention and investment to the Stellar blockchain, potentially leading to an increase in the value of XLM tokens.
Performance of XLM tokens in the past year
Over the past year, XLM tokens have shown modest performance compared to the benchmark CoinDesk 20 of large-cap digital assets. While the CoinDesk 20 gained 67%, XLM tokens gained 21%. However, it’s important to note that cryptocurrency markets are highly volatile and subject to various factors, including market sentiment, adoption, and regulatory developments.
Potential future trends for XLM
The potential future trends for XLM tokens depend on various factors, including the success and adoption of the Soroban upgrade, the overall market conditions, and the regulatory landscape. If the upgrade proves to be successful in attracting developers and projects to the Stellar ecosystem and expanding its user base, it could have a positive impact on the value and demand for XLM tokens. However, it is essential to approach cryptocurrency investments with caution and conduct thorough research.
Delay and Bug Discovery
Reason for the delay in the upgrade
The delay in the Protocol 20 upgrade was due to precautions taken after a bug was found in the Stellar Core v20.1.0 software. The development team and validators opted for a delay to ensure the stability and security of the upgrade. This decision reflects the commitment of the Stellar community to prioritize the reliability and integrity of the blockchain.
Bug found in the Stellar Core v20.1.0 software
The bug found in the Stellar Core v20.1.0 software required attention and resolution before proceeding with the upgrade. The specifics of the bug and its impact have not been disclosed in the provided content. However, the bug highlights the importance of thorough testing and quality assurance measures in software development to prevent potential issues and vulnerabilities.
Developer and validator response to the bug
Upon discovering the bug, the development team and validators took prompt action to address the issue. They opted for a delay in the upgrade to ensure proper resolution and mitigate any potential risks. This response demonstrates the collaborative effort and responsible approach of the Stellar community towards maintaining the integrity and security of the blockchain.
CoinDesk’s Coverage and Ownership
Overview of CoinDesk as a media outlet
CoinDesk is an award-winning media outlet that serves as a leading source of news and information on cryptocurrency, digital assets, and the future of money. It is known for its high journalistic standards and comprehensive coverage of the blockchain industry. CoinDesk provides insights, analysis, and market updates to a global community of readers and subscribers.
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CoinDesk’s Consensus 2024 Event
Details and purpose of Consensus 2024
Consensus 2024 is a highly influential and long-running event organized by CoinDesk. It brings together all sides of the crypto, blockchain, and Web3 community, fostering discussions, collaborations, and innovation. The event aims to provide a platform for industry leaders, developers, investors, and enthusiasts to explore the latest trends, technologies, and opportunities in the blockchain space.
Relevance to the Stellar and blockchain community
Consensus 2024 is relevant to the Stellar and blockchain community as it provides an opportunity to network, learn, and exchange ideas with industry experts and peers. Attendees can gain insights into the latest developments in the blockchain industry, including the Soroban upgrade and its impact. The event creates a conducive environment for fostering partnerships and driving innovation within the ecosystem.
Registration and attendance information
For registration and attendance information regarding Consensus 2024, readers are directed to visit the consensus.coindesk.com website. The website provides details regarding the event’s dates, location, agenda, and ticketing. Interested individuals can register and purchase their passes to participate in this influential event.
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