The Stellar Network, a prominent player in the blockchain industry, is poised for a significant enhancement to its ecosystem. Protocol 21, the latest upgrade in Stellar's technology lineup, focuses on its newly introduced smart contract, Soroban. Following a successful validator vote on February 20, 2024, preparations for another protocol vote, scheduled for June 18, 2024, are underway.

If the Stellar public network validators approve Protocol 21, five Core Advancement Proposals (CAPs) will be activated on the network's Mainnet, leading to substantial improvements in functionality, efficiency, cost savings, security, and performance.

These CAPs include enhancements such as passkey signing support, updates to the state archive system, and reductions in transaction costs for smart contracts. Notably, CAP-0051 introduces secp256r1 proofing for Stellar's smart contracts via the exported host interface, enabling the use of passkeys for transaction signing.

Other proposed CAPs focus on extending the lifespan of contract instances and optimizing transaction costs for Soroban smart contracts. CAP-0054 adjusts the cost model for starting up virtual machines, CAP-0055 reduces the number of host functions linked at installation time, and CAP-0056 enables the use of cached Wasm modules for transactions.

The planned upgrade of the Protocol 21 Project in the testnet is set for May 14, 2024, using the multichain testnet until the mainnet launch to implement necessary modifications and ensure smooth operation.

The upcoming June vote holds significant promise, potentially elevating Stellar to new heights by enhancing its competitiveness in the ever-evolving blockchain technology sectors. Protocol 21 aims to improve the network's functionality and affordability, benefiting users and establishing Stellar as a leading blockchain network. Its successful implementation is expected to serve as a cornerstone for Stellar's continued innovation, growth, and accelerated adoption and development within the blockchain ecosystem.