The XRP Ledger (XRPL), the open-source distributed ledger developed by Ripple, is gearing up for major feature updates that will significantly expand its capabilities and cement its position as a leading blockchain ecosystem.
According to a recent 17-part thread by DeXfi, a prominent XRPL project, the ledger has ambitious plans to implement cutting-edge functionalities related to decentralized finance (DeFi), compliance, identity, data, and more.
Simplifying the Technicals
XLS-30d, which will first add native automated market-making (AMM) liquidity pools to the XRPL, is one of the most eagerly awaited upgrades.
Smart contracts called AMMs offer liquidity in place of conventional buyers and sellers. They have greatly accelerated the adoption of DeFi on platforms like Ethereum.
Swaps between XRP and issued tokens will be possible thanks to XRPL's AMM integration, boosting total liquidity. Trading commissions will also generate a passive income for liquidity providers. For the best token pricing, the AMM will split profits with the Dexter decentralized exchange.
Enhanced Asset Control
XLS-39d or "Clawback" will introduce a crucial asset control function for significant stablecoin issuers and financial organizations.
Assets on the XRPL may be revoked or frozen if needed for purposes like regulatory compliance, inquiries, or security thanks to clawback. Notably, this won't have an impact on XRP. Token issuers have the option of choosing to use the clawback.
Major stablecoin projects will find XRPL more appealing thanks to clawback's ability to govern assets, which will also help to bridge the gap between centralized and decentralized financial systems.
Self-Sovereign Identity
Decentralized identifiers (DIDs), which allow for self-sovereign digital identification, will be incorporated into the XLS-40d version.
DIDs provide user-owned, autonomous identities that may communicate across any domain and offer continuity. They are distributed ledgers or blockchain-based assertions that can be cryptographically verified and are decentralized.
The W3C DID standard will be specially implemented by XRPL, ushering in a day when users' digital identities will be portable across XRPL-connected apps and services. Additionally, this broadens the environment.
Looking Ahead
These improvements reinforce XRPL's position as a pioneering ledger at the vanguard of real-world blockchain usage and adoption, which is good news for XRP supporters and holders of cryptocurrencies. The future is promising and fascinating.
