In a recent announcement on its blog, Ripple detailed plans to enhance the programmability of the XRP Ledger ecosystem, focusing on the introduction of native smart contracts and the development of the XRPL EVM Sidechain. These advancements aim to broaden the platform’s utility for developers and users, offering more flexibility and new opportunities for innovation.
Ripple’s strategy includes two major developments. First, research is underway to explore the introduction of native smart contract capabilities on the XRP Ledger Mainnet. This effort focuses on enabling permissionless deployment without requiring amendments, allowing easy customization of native features while maintaining network performance and cost efficiency. Although this initiative is still in its early stages, according to Ripple, in collaboration with the XRP Ledger developer community, it is committed to ensuring these new capabilities align with the ecosystem’s needs. An XLS proposal should get published for broader review once this research has been completed.
The second development, expected to roll out sooner, is the XRPL EVM Sidechain. Developed in collaboration with Peersyst, this sidechain is set to bring Ethereum Virtual Machine (EVM) compatibility to the XRP ecosystem. This integration will enable developers to use familiar tools and languages, making it easier for those already versed in Ethereum development to transition to the XRP Ledger. The XRPL EVM Sidechain is designed to work seamlessly with Axelar, facilitating transactions between the sidechain, the XRP Ledger, and over 55 other blockchains. Wrapped XRP (eXRP) will be the native asset and gas token, ensuring efficient cross-chain transactions. The development of this sidechain is projected to accelerate in early 2025, marking a significant milestone in the platform’s evolution.
The XRP Ledger is already equipped with several programmable features, such as Escrows, NFTs, authorized trust lines, payment channels, and decentralized exchange with an automated market maker. These existing features provide a foundation of composable primitives for various use cases, highlighting the platform’s current capabilities while setting the stage for future enhancements.
While the XRP Ledger’s amendment process supports carefully considered updates, it can limit rapid innovation for niche use cases. The exploration of native smart contracts aims to address this limitation, potentially offering more flexibility for developers to create customized solutions. However, these initiatives may face challenges, including uncertainties around the timeline and feasibility of implementing native smart contracts on the Mainnet, as well as the adoption rate of the XRPL EVM Sidechain among developers. Additionally, the impacts on the XRP Ledger’s performance, security, and competition with existing smart contract platforms will need to be closely monitored.
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