Blockchain payments firm Ripple has announced plans to integrate smart contracts into the XRP Ledger mainnet. This upgrade aims to enhance programmability, allowing developers to build customized applications on the network.
Smart Contracts Coming to XRP Ledger
In a recent announcement, Ripple revealed its initiative to expand layer-1 functionality by introducing smart contract capabilities to the XRP Ledger. Launched in 2012, the XRP Ledger has traditionally been used by banks and financial institutions for cross-border payments.
Smart contracts are self-executing agreements with terms written directly into code. This new functionality will leverage existing standards like Hooks while providing greater flexibility for developers.
Key features of the upgrade include:
- Enhanced Flexibility: Developers can creatively use core components like escrows, NFTs, trust lines, and payment channels.
- No Formal Amendment Required: Smart contracts can be deployed without approval processes, though an XLS standard will ensure security and efficiency.
👉 Discover how XRP Ledger is evolving
EVM Compatibility via Sidechains
Ripple is also working on an EVM-compatible sidechain in collaboration with Peersyst, expected to launch next year. This sidechain will enable developers to use Ethereum Virtual Machine (EVM) tools and programming languages.
- Cross-Chain Transactions: The XRPL EVM Sidechain will utilize Axelar’s bridge to connect with over 55 blockchains.
- Wrapped XRP (eXRP): Acts as the gas token for sidechain transactions.
Ripple’s Growing Ecosystem
The smart contract rollout aligns with other recent developments:
- RLUSD Stablecoin: Ripple’s fiat-pegged stablecoin is now in beta testing on Ethereum and XRP Ledger.
- EVM Partnerships: Previous collaborations with Cosmos-based evmOS further expand EVM compatibility.
FAQ
What are smart contracts on XRP Ledger?
Self-executing code enabling decentralized applications, enhancing the ledger’s programmability.
When will EVM support launch?
Early next year, via the XRPL EVM Sidechain.
How does wrapped XRP (eXRP) work?
It facilitates gas payments on the sidechain and enables cross-chain transactions.
👉 Learn more about Ripple’s innovations
Will RLUSD boost XRP liquidity?
Yes, the stablecoin aims to improve liquidity by maintaining a 1:1 peg with the US dollar.
This expansion positions XRP Ledger as a more versatile platform, catering to DeFi, NFTs, and cross-chain interoperability. Stay tuned for further updates as Ripple continues to enhance its ecosystem.