Stellar Network, a leading figure in the blockchain realm, is poised for a significant upgrade aimed at bolstering its already impressive ecosystem. Protocol 21, the latest advancement in Stellar's unique technological repertoire, centers around its recently introduced smart contract platform, Soroban. Following a successful validator vote on February 20, 2024, preparations for another protocol vote on June 18, 2024, are underway.

If the public network validators approve Protocol 21, five Core Advancement Proposals (CAPs) will be activated on the network's Mainnet, marking a substantial leap forward in the network's functionality. These proposals aim to enhance efficiency, reduce costs, and bolster the security and performance of the Stellar network.

Among the upcoming enhancements outlined in these CAPs are support for passkey signing, updates to the state archive system, and reductions in transaction costs for smart contracts. Notably, CAP-0051 will enable secp256r1 proofing of Stellar's smart contracts through the exported host interface, allowing the use of passkeys for transaction signing, a departure from traditional methods.

CAP-0053 updates will improve the lifespan and code longevity of contract instances, providing Soroban smart contracts with the ability to maintain long-term associations with their hosting functions. Other proposed CAPs prioritize cost efficiency in Soroban transactions, with CAP-0054 addressing the cost model of virtual machine startup, CAP-0055 reducing the number of host functions linked during installation, and CAP-0056 targeting transaction costs by enabling the use of cached Wasm modules.

The scheduled upgrade of the Protocol 21 Project in the testnet is set for May 14, 2024, utilizing the multichain testnet initially before the mainnet launch. This step aims to implement necessary modifications and ensure the smooth operation of all functions during the widespread deployment of the update.

The upcoming June vote holds promise for Stellar, with the potential to propel it to new heights. The implementation of Protocol 21 could elevate the entire Stellar network, enhancing its competitiveness in the ever-evolving landscape of blockchain technology. This update seeks to improve functionality and affordability, benefiting users and advancing Stellar's position as a leading blockchain network.