Stellar Open Protocol discussion on CAP 21, which enables payment channels on Stellar for off-chain transactions and improved network throughput. The CAP is moving forward to the committee for approval after technical revisions and validation experiments.
The Stellar Development Foundation hosted an open protocol discussion focused on CAP 21, a core advancement proposal that lays groundwork for payment channels on Stellar. Payment channels allow multiple parties to transact off-chain and periodically settle on-chain, enabling high-volume use cases and improved network scaling. The team discussed recent technical revisions including changes to timepoint handling and transaction sequencing logic. Experiments have validated that CAP 21 enables safe, predictable payment channels that work well with issued assets and regulated assets. While performance testing continues, the team determined the CAP is technically sound and ready for CAP committee review. Implementation is estimated as medium complexity, with straightforward SDK changes. The discussion also covered CAP 40, which will move forward alongside CAP 21. The team invited ecosystem members to share use cases and noted that more details will be presented at Meridian.