• Tue. May 30th, 2023

Stellar Is Going To Experience Protocol 17 Hardfork With Key Updates

Jun 4, 2021

Stellar (XLM) is a distributed, open-source, and most importantly, the community-owned network that is utilized to facilitate various cross-asset transfers at a relatively low cost. It had been founded in 2014 by Jed McCaleb, who also acted as the co-founder for Ripple and had additionally founded Mt. Gox as well. As of the time of this writing, XLM is trading at $0.39 with a negative price change of 2.1 percent in the past 24 hours.

Today marks the date when Stellar’s validators shall decide on whether to implement the most significant update for the network or not. This upgrade will be able to enhance Stellar blockchain’s regulatory compliance if approved.

Stellar to be fully compliant

Stellar Development Foundation had announced that the network validators should be voting on the update later today, with the update itself being referred to as Protocol 17. The foundation is essentially the non-profit responsible for developing Stellar’s blockchain.

Protocol 17 is yet to arrive; however, many believe that the vote will be carried out in its favor. The update shall provide a new feature that opens up all sorts of various possibilities as far as issuing the regulated assets onto the network may be concerned.

Furthermore, should the update occur, a new feature will also be implemented, which has the potential to enhance Stellar’s ability to comply with the various securities’ regulatory rules, restrictions, and requirements in numerous jurisdictions. This mechanism is known as ‘Asset Clawback’, and it will also enable transfer agents as well as asset issuers to be able to have their assets be revoked if the situation calls for such an action.

DeFi Stellar integration

The developers at Stellar wanted to remind everyone that the Protocol 17 update will not have any effect on the pre-existing accounts and balances. Also, in order to have the various new functions be successfully activated, issuers are recommended to have their assets be clawback-enabled.

It should also be mentioned that the new functionality will not possess the ability to be successfully implemented onto Stellar Lumens, which is the network’s native asset. This is because of the lack of any issuing account. Furthermore, clawback will also not be allowed to function retroactively.

Ultimately, Stellar remains optimistic that the equities, funds, and bonds will be able to become tokenized by the issuers’ thanks to the implementation of Asset Clawback. Moreover, the developers are also hopeful that regulated financial services will also be successfully integrated into Stellar’s own ecosystem.

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