If validators cast their vote in support of the update, the Stellar (XLM) blockchain might be upgraded to Protocol 17 later this evening. Through a May 19 blog post, the Stellar Development Foundation (SDF) suggested prospective Protocol 17 enhancements.
In case the vote passes, the upgrade will be instant, as per the creator of the Stellar network. The Foundation additionally recommends that anybody developing on Stellar be prepared to upgrade to the latest versions of any Stellar-related applications.
SDF updates the Stellar Protocol only few times a year to provide unique and up-to-date capabilities to fulfill the demands of users. Besides validator clearance, protocol updates necessitate the installation of latest variants of Stellar Core, Horizon, and the Stellar SDKs by anybody working with the Stellar Protocol.
The network’s functionalities are enhanced by installing the required versions. Additionally, the installation enables network developers to design innovative and enhanced goods and services.
Fee increases, claimable sums, and sponsored reserves were mentioned in the blog article as features incorporated in latest protocol revisions. The functionality makes it simple to create user-friendly interactions.
Protocol 17 includes a single attribute clawback—that opens up new options for issuing regulated assets on the Stellar network, according to SDF. Asset clawback, according to the Foundation, is intended for enterprises that provide regulated financial products. Bonds, stocks, and money market funds are examples of these financial vehicles.
SDF further said:
To comply with securities regulatory requirements in many jurisdictions, these issuers – or their designated transfer agents- must demonstrate the ability to revoke assets in certain situations, and this new feature allows them to do that.
A new account sign, new trust line, and claimable balance insignia have also been added to Protocol 17 to validate asset clawback. Issuers can deduct a partial or claimable amount with the correct flags. Additionally, the appropriate account indicators can be used to establish and delete trust line flags as needed.
Additionally, the asset clawback functionality may enable issuers to reclaim assets earned via illegal ways in the past. The new function will also aid issuers in responding to regulatory measures. Another benefit that the features provide to issuers is the process of retrieving lost funds due to some major custodial loss or theft.
After issues can confirm their identity, they will be allowed to reclaim their lost assets. The latest function will not impact current assets, accounts, or balances, according to Stellar developers. Issuers can also designate whether or not an asset is clawback-enabled at the time of issuance. Asset clawback is not possible using Stellar’s native coin, XLM.
This is due to the fact that XLM does not necessitate a trust line or perhaps an issue account. Asset clawback will also make it simple for issuers to tokenize bonds, ETFs, and stocks in a legal and compliant way. Furthermore, issuers will also be able to extend their market, get entry into new markets, and have access to greater financial framework.
