Ripple has announced its plan to add smart contracts to the XRP Ledger (XRPL). This is an important update because, even though XRPL is one of the older blockchain networks, it does not currently have smart contract features. Adding smart contracts could help XRPL keep up with other networks like Stellar, which introduced them earlier this year.
The XRPL community has been working on ways to bring smart contracts to the network, using different methods like the Hooks protocol. However, progress has been slow due to various challenges. Ripple has now presented a two-part plan to make smart contracts possible on the XRPL. This plan includes using both the XRPL EVM sidechain and adding native features on the XRPL Mainnet
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The Plans For The XRP Ledger
Ripple shared this plan during recent events in Korea and Japan, where the company highlighted its aim to make the XRPL more useful, especially for businesses. This plan is part of Ripple’s broader effort to grow the XRPL developer community by adding features that make the network more programmable, such as smart contracts, which are becoming more common in blockchain networks.
Ripple’s plan includes two main parts: first, adding native smart contract features directly on the XRPL Mainnet; and second, creating the XRPL EVM Sidechain. These two parts are meant to work together to improve the network’s abilities. On the XRPL Mainnet, new basic features like smart contracts will be added. This will allow developers to customize functions to meet their needs without needing approval from the entire community. These features will be permissionless, meaning it will be easier for new developers to join and build on the XRPL without slowing down the network or raising costs. To ensure a smooth process, Ripple plans to propose an XRP Ledger Specification (XLS) to figure out the best way to add these features.
At the same time, Ripple is working on the XRPL EVM Sidechain with its partner Peersyst, which is a key part of their plan to improve XRPL’s programmability. The XRPL EVM Sidechain will make the XRP Ledger compatible with the Ethereum Virtual Machine (EVM), allowing it to support smart contracts written in Solidity, the programming language used on Ethereum. One important feature of the XRPL EVM Sidechain is its ability to connect with over 55 other blockchains through Axelar, making it easier to carry out transactions between the XRPL EVM Sidechain, the main XRPL network, and other blockchain networks. This level of connectivity could greatly increase the network’s appeal by allowing transactions across different blockchains.
In this new sidechain setup, eXRP, a wrapped version of XRP, will be the main asset and the token used for transaction fees, or gas, within this ecosystem. Ripple’s Chief Technology Officer, David Schwartz, has shown great excitement for these new updates, encouraging the community to consider what both native and sidechain programmability could bring to the XRPL. His enthusiasm shows that Ripple sees these changes as important for the future success of the network.
The community’s reaction to these announcements has been mostly positive. Well-known figures in the XRP community, like WrathofKahneman (WOK), have expressed their excitement about Ripple’s plans. WOK praised Ripple for focusing on both the EVM Sidechain and native smart contract features, seeing it as a balanced plan that could greatly benefit the XRPL. He also appreciated Ripple’s efforts to involve the community in the decision-making process, especially through the upcoming XLS proposal, which will allow for more input on how these features should be added.
Despite the positive response, WOK mentioned that there are still many details to figure out. He raised questions about whether Ripple might need to use methods like sharding, which involves splitting the blockchain to improve performance, or subnetting, which involves creating smaller segments of the network, to make these improvements work. Additionally, he wondered whether Ripple could add these major changes without slowing down the network, which is known for its speed.
In summary, Ripple’s plan to bring smart contracts to the XRPL marks a big step forward for the network. With both the XRPL Mainnet and the XRPL EVM Sidechain, Ripple hopes to greatly improve the network’s programmability, creating new opportunities for developers and increasing the overall usefulness of the XRP Ledger. This could help the XRPL stay competitive in the blockchain industry, especially as smart contracts become a key feature for blockchain networks that aim to support a wide range of applications and services.
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