Stellar: Composability, More Connections = More Possibilities

Composability within the blockchain ecosystem enables the combination of multiple components to create more complex decentralized systems, akin to customizing a car with parts from different brands. This principle is crucial for decentralized finance (DeFi), where it enhances efficiency by allowing developers to use existing components rather than build from scratch. It also improves security by reusing well-tested smart contracts and promotes capital efficiency by enabling assets to remain active within the ecosystem, thereby increasing total value locked (TVL). In Stellar’s context, composability facilitates a variety of interactions and uses for tokenized assets, supporting interoperability and network growth. Developers are encouraged to adopt common standards like the SEP-0041 Soroban Token Interface to ensure seamless integration and functionality. As smart contracts on Stellar are relatively new, there are significant opportunities for innovation in DeFi use cases.