- Stellar Network has upgraded to Protocol 11
- The upgrade features low transaction fee, better price discovery, and other exciting services
- At press time, XLM trades $0.12 with a market cap of $2.3 billion
Open-source blockchain project Stellar tweeted on June 10, 2019, that it had successfully upgraded to Protocol 11. The new upgrade brings with it a whole host of features and improvements that would help the Stellar community open new business avenues and eclipse rival blockchain networks.
Protocol 11 Explained
Stellar, a distributed ledger technology (DLT) network that is working towards reducing the physical distance by enabling a quick, transparent, and efficient payment mechanism recently upgraded to Protocol 11.
FYI: Protocol 11 update went live.
— Stellar (@StellarOrg) June 10, 2019
Per sources in the know, the new protocol has been in the testnet since May 13, 2019, and was launched on the mainnet yesterday.
The latest upgrade brings three major improvements with regard to the Stellar network in the form of better transaction pricing, improved network capacity, and the introduction to buy offers.
The upgrade allows better transaction pricing by using a system similar to the VCG (Vickrey-Clarke-Groves) auction model.
According to this model, a user can choose the maximum amount of transaction fee he’s willing to pay. However, the user is only bound to pay within the maximum amount depending on the network activity. Hence, in instances where the network is not too clogged, transactions can be executed for a far lower fee.
This is in stark contrast to the previous fee payment mechanism where users had the option to pay as much fee as they wanted, based on which the speed of transaction would be determined. A higher fee usually enabled quicker transaction confirmation.
Enough validators have armed an upgrade to Stellar Protocol 11 on Monday at 16:00 UTC that it is locked in now! If you run a node or use an SDK, make sure you've upgraded before that happens.
Description of v11:https://t.co/VWJVadZczj
— Jed McCaleb (@JedMcCaleb) June 7, 2019
Another important upgrade pertains to the switch from a “transaction-per-ledger” model to an “operation-per-ledger” one for validators. In layman terms, after the upgrade, network validators will have the option to increase the operations/ledger ratio to 1000 which would, in turn, exponentially increase the overall network throughput.
Last but not the least, the upgrade will also mark the debut of the “ManageBuyOffer” feature on the Stellar network that would create a cohesive co-operating platform between users, various financial institutions, and banks. This feature would facilitate more intuitive and accurate price discovery, experts say.