Stellar Foundation Aims for Smart Contracts in 2022
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The Stellar Development Foundation (SDF), the non-profit organization behind the Stellar blockchain network and its native token XLM ($XLM), has released its roadmap for 2022.
The roadmap details SDF’s plans for increasing network scalability, network participation, innovation, and overall creating a more equitable financial system that promotes interoperability between traditional and modern financial systems. A major part of their plans for 2022 include the development of smart contract capability on the Stellar network.
Smart contracts are simply programs that run code on a blockchain network. The contract can send transactions across the network without the need for human interaction, where once it is set up and deployed the smart contract can automate transactions and payments. These types of programs are integral to the development of decentralized applications (DApps) such as decentralized exchanges (DEXes), automated market makers (AMMs), lending protocols, and non-fungible token (NFT) creation.
Currently the Ethereum network is the leader in smart contract development and capable applications, but competitors such as Cardano are beginning to implement the technology as well in an effort to close the technological gap.
With the inclusion of smart contract capabilites, Stellar is positioning itself not only as a competitor to Ethereum, but as a leader in the future of cross-border payment systems. SDF Vice President of Ecosystem Justin Rice stated in the official announcement that “the goal is for Stellar to remain one of the most accessible networks for developers so that they can deliver high quality and safe applications to their users, while allowing it to adapt and respond to the competitive blockchain landscape.”
Rice gave further insight into how Stellar could differentiate itself from other networks that currently have the functionality, stating that “smart contracts aren’t new, but the way we could execute them on Stellar, learning from what’s been tested in the broader industry, could bring new utility in a way that doesn’t currently exist.”
Stellar has continued to make headlines in media circles with its partnership with the Ukrainian government in the creation of a digital currency and the SDF testimony during the U.S. House Committee on Financial Services meeting regarding digital assets. It remains to be seen what kind of impact smart contracts could have on the Stellar network, but the increased development of decentralized applications on a network that has much faster transactions and lower fees compared to Ethereum is always welcome.