The Stellar network, a decentralized blockchain platform for payments and tokenization, has announced a phased rollout of smart contracts on its mainnet. Smart contracts are self-executing agreements that can facilitate various use cases such as payment channels, key recovery solutions, and bridges to other blockchains.
What are Soroban Smart Contracts?
Soroban is the name of the smart contract system that will be enabled on the Stellar network by Protocol 20, a network upgrade that was voted and agreed by the validators. Soroban smart contracts are based on the concept of transaction preconditions, which are conditions that must be met before a transaction can be executed. For example, a precondition can specify that a transaction can only be executed if the balance of an account is above a certain threshold, or if a certain time has elapsed.
Soroban smart contracts are composed of multiple transactions that are linked together by preconditions. Each transaction can have multiple preconditions, and each precondition can reference the outcome of a previous transaction in the chain. This way, complex logic can be encoded and executed on the Stellar network, without requiring a dedicated virtual machine or a new programming language.
How will Soroban Smart Contracts Benefit the Stellar Ecosystem?
Soroban smart contracts will bring several benefits to the Stellar ecosystem, such as:
- Enhanced functionality: Soroban smart contracts will enable new use cases and applications that were not possible before on the Stellar network, such as payment channels, key recovery solutions, and bridges to other blockchains. Payment channels are a way of reducing transaction fees and increasing scalability by allowing users to exchange multiple payments off-chain, and only settle the final balance on-chain. Key recovery solutions are a way of restoring access to an account if the user loses their private key, by using a combination of trusted parties and time locks. Bridges to other blockchains are a way of transferring value and information across different blockchain platforms, by using intermediaries and escrow accounts.
- Backward compatibility: Soroban smart contracts will not require any changes to the existing Stellar accounts, assets, or operations. They will be fully compatible with the current Stellar network and ecosystem, and will not affect the performance or security of the network. Users and developers will be able to use Soroban smart contracts with the same tools and services that they are already familiar with, such as Stellar Core, Stellar SDK, or Horizon.
- Ease of use: Soroban smart contracts will be easy to use and understand, as they will use the same transaction format and syntax that are already used on the Stellar network. Users and developers will not need to learn a new programming language or a new set of rules to create and execute smart contracts. They will also be able to test and debug their smart contracts on the Stellar testnet, before deploying them on the mainnet.
What is the Timeline for Soroban Smart Contracts?
Soroban smart contracts will be introduced to the Stellar network in phases, as follows:
- Phase 1: The release of a full suite of software that supports Protocol 20, which will bring Soroban smart contracts to Stellar. This includes Stellar Core v19.0.0, Stellar SDK v9.0.0, and Horizon v3.0.0. These software versions are already available for download and testing on the Stellar testnet, as of December 19, 2023.
- Phase 2: The activation of Protocol 20 on the Stellar mainnet, which will enable Soroban smart contracts for all users and developers. This will happen after the validators vote and agree to upgrade the network to Protocol 20, which is expected to happen in early 2024.
- Phase 3: The launch of a Soroban smart contract explorer, which will allow users and developers to view and interact with smart contracts on the Stellar network. This will be a web-based tool that will provide a graphical interface and a code editor for creating and executing smart contracts. This will be available in mid-2024.
The Stellar Development Foundation (SDF), the non-profit organization that supports the Stellar network and ecosystem, has thanked everyone for their support, cooperation, and feedback throughout the process of developing and deploying Soroban smart contracts. The SDF believes that Soroban smart contracts will unlock the world’s economic potential by opening up the markets and injecting more fluidity into money, on top of empowering people.
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