- Stellar embarks on a transformative journey with the introduction of smart contracts through its Soroban project.
- The integration could potentially boost the demand for Stellar’s native XLM token.
Stellar’s Fresh Ambition
Stellar, with its roots deeply set in simplifying cross-border payments, is set to broaden its horizons. Despite being conceived in a time when blockchains primarily handled transactions, it is about to embrace a more versatile function. The introduction of the Soroban project signifies Stellar’s ambition to accommodate “smart contracts” – self-executing contracts with terms of agreement between buyer and seller directly written into lines of code.
What are Smart Contracts?
For the uninitiated, smart contracts are not just ordinary contracts. They’re programmable constructs stored on blockchains, analogous to software on a computer. Ethereum, birthed a year post-Stellar, currently reigns supreme in this domain, largely due to its expansive ecosystem. The essence of such a system is to enable decentralized applications, especially in the booming Decentralized Finance (DeFi) sector. But Ethereum isn’t without rivals – names like Solana, Aptos, and Algorand stand out as competition.
The Birth of Soroban
Soroban represents Stellar’s leap into this challenging terrain. Spearheaded by Tomer Weller, VP of Product at Stellar Development Foundation, the integration of Soroban is one of Stellar’s most significant evolutions since its inception in 2014.
“We envision a future rich in decentralized finance, and Stellar aims to be at the forefront of this revolution,”
remarks Weller.
A surge in activity on the Stellar network, consequent to Soroban’s integration, might just tip the scales in favor of the XLM token. For perspective, this year alone, XLM saw a commendable 46% rise in value.
Safeguarding the Smart Contract Evolution
Ensuring the safety and efficacy of this evolution, Stellar Development Foundation (SDF) has joined forces with Certora, a renowned security platform. Certora’s expertise will aid developers in ensuring the robustness and reliability of applications prior to their launch.
The Road Ahead
However, Stellar’s venture into smart contracts isn’t without challenges. Ethereum, with a market cap 65 times Stellar and a developer base vastly larger, poses as a formidable opponent.
“Taking on established giants is no easy feat, and Stellar’s success in this domain remains to be seen,”
states Doo Wan Nam, co-founder of StableLab.
Stellar, undeterred, is fueling its venture with both passion and resources. The SDF is committed to making Stellar a universal payment network. With a treasury boasting a staggering 22 billion XLM tokens, valued at around $2.3 billion, Stellar is strategically positioned to steer its transformative journey.
Amidst these ambitious strides, one might wonder about the origins of the name ‘Soroban’. It is derived from a Japanese abacus, symbolizing compactness and minimalism. With the Stellar team embracing superior technical choices such as Rust as its primary programming language, it’s clear they’re pushing the boundaries of innovation.
Stellar‘s evolution with Soroban heralds an era of enhanced blockchain capabilities, only time will tell how it reshapes the landscape of decentralized finance.
