Stellar Network Enables Soroban Smart Contracts on Mainnet

Stellar Network (XLM) has embarked on a significant evolution with the implementation of the Protocol 20 upgrade on its mainnet. This upgrade signifies a pivotal moment for the blockchain, ushering in a new era of capabilities and functionalities.

Soroban revealed its launch on social media platform X, marking a significant milestone in the cryptocurrency space.

Stellar Network Soroban Integration

One of the central features introduced by the Protocol 20 upgrade is the integration of Soroban smart contracts capabilities. This integration marks a significant expansion of Stellar’s functionality, positioning it as a formidable contender in the realm of decentralized applications (dApps) and smart contract platforms.

Although it was originally conceived for facilitating seamless payments, Stellar has pivoted towards decentralized finance (DeFi) as a strategic maneuver to compete with established protocols like Cardano (ADA) which is riding the Bitcoin wave and Ethereum (ETH).

Soroban Phased Rollout

The deployment of Soroban smart contracts is being meticulously executed through a phased approach. Currently in Phase 0, the focus is on conducting rigorous stability tests to ensure the reliability of Soroban transactions.

Despite the initial limitations in ledger capacity, Phase 1 promises an augmentation of ledger capacity, thereby enabling applications to undergo testing and deployment on the mainnet. Subsequently, Phase 2 aims to render Soroban fully user-ready while concurrently enhancing scalability for smart contracts.

Although specific timelines for these phases remain undisclosed by the Stellar network, the gradual rollout points to their commitment to delivering a robust and scalable smart contract solution.

Stellar (XLM) Market Price Indices

The announcement of Soroban smart contracts has reverberated positively within the market, as evidenced by the resurgence in the price of Stellar (XLM). At the time of reporting, XLM is trading at $0.1149, reflecting a notable 3.3% increase over the past 24 hours.

This upward trajectory demonstrates investor confidence in Stellar’s strategic evolution and its potential to carve a niche in the growing DeFi landscape.

With the Protocol 20 upgrade, analysts suggest that the rapid transaction speeds of Stellar could entice developers from leading alternative cryptocurrencies to join its network, potentially resulting in an increase in XLM due to heightened network activity.