Stellar Testnet Announces Protocol 2 Upgrades - Crypto Daily

The Stellar network's Testnet upgrade to Protocol 21 introduces new features like passkey signing and enhanced state archival. This update follows the launch of Soroban, Stellar's smart contract platform, and sets the stage for a mainnet upgrade vote on June 18th. Stable software releases and a testnet reset pave the way for the potential implementation of Protocol 21 on the mainnet, which could boost the value of Stellar (XLM).

Stellar Network Advances to Protocol 21 in Testnet Upgrade

May 14, 2024

The Stellar network, a decentralized blockchain platform, has successfully upgraded its testnet to Protocol 21. This latest upgrade introduces several significant features, paving the way for increased functionality and efficiency on the platform.

Enhanced Features and Capabilities

Protocol 21 brings several key improvements to Stellar, including the introduction of passkey signing and enhancements to state archival. Passkey signing streamlines the account creation and transaction signing process, providing users with a more accessible and secure experience. Additionally, the state archival improvements optimize the storage and retrieval of network data, enhancing the performance and reliability of the platform.

Phased Implementation Plan

The implementation of Protocol 21 will proceed in three phases:

• May 30: Stable releases of Stellar Core, Horizon, and RPC will be available.
• June 11: A testnet reset will be conducted to ensure seamless integration of the new features.
• June 18: A mainnet upgrade vote will be held by the validators on the Stellar network to determine whether Protocol 21 will be implemented on the live network.

Market Impact and Future Prospects

The upgrade to Protocol 21 is expected to have a positive impact on the price of Stellar's native cryptocurrency, XLM. XLM plays a crucial role in the development of decentralized finance (DeFi) applications on the Stellar network, and the enhanced functionality introduced by Protocol 21 is likely to attract increased interest and adoption.

While the long-term price impact of Protocol 21 is uncertain, the upgrade represents a significant step forward for the Stellar network. By introducing new features and improving existing ones, Protocol 21 aims to enhance the platform's usability, security, and overall performance, laying the groundwork for future growth and innovation.

As of the time of writing, XLM is trading at $0.1027, experiencing a 1.7% price drop over the past 24 hours. However, market analysts remain optimistic about the long-term trajectory of XLM in light of the upcoming upgrade.

Disclaimer: This article should not be construed as investment advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions.