By Key Points
- XRP Ledger will soon support Ethereum-compatible smart contracts.
- Ripple announces XRPL EVM sidechain to enhance smart contract capabilities.
- Native smart contracts will transform XRPL’s architecture and utility.
- Ripple aims to attract global developers and expand XRP’s use cases.
Ripple is set to revolutionize the XRP Ledger (XRPL) by introducing Ethereum-compatible smart contracts, a development that is expected to significantly enhance XRPL’s functionality and appeal.
The company has announced plans to launch a new Ethereum Virtual Machine (EVM) sidechain, which will allow developers to deploy smart contracts on the XRP Ledger using familiar Ethereum tools and languages.
This strategic move to introduce XRP Ledger smart contracts represents a foundational shift in XRPL’s architecture.
By expanding its capabilities beyond simple transactions, Ripple aims to make XRPL a more versatile and powerful platform, capable of supporting a wide range of decentralized applications (dApps) and services.
The integration of these smart contracts is anticipated to increase XRPL’s utility and attract a broader audience of developers and enterprises.
🚨BREAKING: @Ripple has just introduced smart contracts on the $XRP Ledger through an EVM-compatible sidechain. pic.twitter.com/X882Scpaf8
— DeFi Planet (@PlanetDefi) September 3, 2024
XRPL EVM Sidechain: Expanding XRP Ledger Smart Contracts
At the heart of Ripple’s strategy is the XRPL EVM sidechain, developed in partnership with blockchain software company Peersyst. This sidechain, set to launch on XRPL’s devnet soon, will bring Ethereum Virtual Machine compatibility to the XRP Ledger.
This means developers can utilize existing Ethereum-based tools and frameworks to create smart contracts on XRPL, thereby expanding the ecosystem’s reach and functionality.
The XRP Ledger smart contracts initiative will be powered by Wrapped XRP (eXRP), which will serve as the native asset and gas token within the EVM sidechain.
Additionally, the sidechain will leverage Axelar’s bridging technology to enable seamless asset transfers between XRPL and over 55 other blockchains.
This development is expected to significantly enhance XRP’s utility, making it a more integrated and flexible asset within the broader crypto landscape.
Ripple’s Vision for XRP Ledger Smart Contracts
Ripple CEO Brad Garlinghouse has highlighted the strategic importance of these developments, noting that the introduction of XRP Ledger smart contracts and the growth of Ripple’s enterprise products are laying the groundwork for a robust crypto infrastructure.
As these smart contracts become available, they are likely to attract a new wave of developers and projects to the XRP Ledger, potentially driving up the value and adoption of XRP globally.
