Ripple competitor Stellar releases a huge update

The Stellar (XLM) Network has announced that its highly anticipated update is now live. As a well-known competitor to Ripple (XRP), the newly added “smart contracts” offer even more functionality.

After more than two years of development, tens of millions of funds raised, and erroneous delays, there is hope that the addition of smart contracts will take the Stellar network to new heights.

Smart contracts on Stellar

Smart contracts are digital contracts between two parties that are automatically executed once certain conditions are met, without the need for third-party intervention.

Contracts based on blockchain technology can be used very broadly. They are used to automate transactions, record terms in contracts, and manage digital assets. They also enable the use of decentralized apps (dApps). Because of all these options, smart contracts can save a lot of time and money.

Stellar’s Soroban will be released in phases

The main goals of the new smart contracts network called “Soroban” are usability and stability. Therefore, SDF plans to release Soroban in ten phases. The advantage of phased release is that the impact of smart contracts on the network can be studied at leisure. This allows performance, security and stability to be monitored. Soroban will be slowly expanded until it can reach its maximum capacity.

Soroban will also be expanded to include additional functions. Once the network has undergone sufficient stress testing and the ecosystem is compliant, SDF would like to add dApps.

Competitor of Ripple

Stellar and Ripple both have a network that allows international transactions to be carried out easily. The difference is that Stellar is a non-profit organization and focuses primarily on average citizens as users, while Ripple focuses on large financial institutions. Both Stellar and Ripple offer their users very fast transactions. Where traditional banks sometimes take days to process international payments, Stellar and Ripple can do it in seconds.

Despite this gigantic upgrade, the price of Stellar Token (XLM) has not increased significantly. Its current price of $0.1136 is just a small amount from $0.8756, the highest price it ever reached in January 2018. For SDF, the hope is that the addition of smart contracts to the network, the company and its token can take it to new heights.

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