Ripple, the cryptoasset infrastructure provider for financial services, announced that it will add smart contract programmability within the XRP Ledger, its native Blockchain created in 2012.
According to the same announcement, the company is developing a sidechain based on the Ethereum-eth/” target=”_blank” rel=”noreferrer noopener”>Ethereum Virtual Machine.
XRP Ledger with smart contracts
Aiming to expand the use cases of the main native network created by Ripple, the company plans to introduce capabilities for deploying self-executing programs, such as escrows, NFTs, payment lines, Bitcoin-criptomonedas-swaps/” target=”_blank” rel=”noreferrer noopener”>decentralized exchanges (DEX) and automated market makers (AMM).
An escrow is a collateral deposit used to secure funds during the processing of a transaction; AMMs, on the other hand, are smart contracts used in Decentralized Finance (DeFi) that provide liquidity in token pairs for users, without the need for human intermediation.
According to the Ripple team, the development of these smart contracts on the XRP chain will be free and permissionless:
Upcoming smart contract functionality will offer additional flexibility for developers by enabling permissionless development.
Team Ripple, developers of XRPL.
Within the XRP ecosystem there are already standards to adapt smart contracts to Ripple accounting, as the proposal called HooksAccording to the announcement, these are “an important foundation on which to iterate to improve mainnet capabilities.”
However, Ripple does not clarify in detail what other technical standards it is using to build contracts on its network.
Otherwise, Ripple says it continues to “evaluate the best way” to meet four self-imposed requirements when building programmability on its main network, which must be “permissionless, easy to customize native functions, easy to learn for new developers, and minimal impact on performance and cost for infrastructure providers.”
XRP Ledger is a network that Ripple characterizes as highly liquid. Source: XRP Ledger Foundation
Developing an XRP Ledger Sidechain
The implementation of smart contracts in XRP Ledger This does not prevent an XRPL sidechain from being on the way, created together with Peersyst, which uses the Ethereum virtual machine (EVM).
The EVM is a computational engine that allows programs to be executed within the Ethereum network. Some chains create their own virtual machines to execute contracts, but in any case, most of these are based on the Ethereum “computer”.
For Ripple,
A key feature of the XRPL EVM sidechain is its ability to leverage Axelar as a bridge, facilitating seamless transactions between the XRPL EVM sidechain, XRP Ledger, and over 55 other blockchains.
Team Ripple, developers of XRPL.
This feature would allow decentralized applications built on the ecosystem to use smart contracts from both the EVM and XRPL sidechains. Wrapped XRP (eXRP) will serve as the wrapped token for transactions across the interchain bridges.
Diagram explaining the interactivity between XRPL and the sidechain. Source: Team Ripple, insights.
The creation of an XRPL sidechain would be motivated by Ethereum’s EVM and its Solidity language They are more established in the developer community and are more familiar.
These sidechain attributes could therefore accelerate the development of decentralized applications on the XRP Ledger, a network that is commonly attributed with few use cases. This sidechain is expected to go live in the coming months.
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