Ripple to Integrate Ethereum-Compatible Smart Contracts on XRP Ledger Soon
Ripple is set to enhance the XRP Ledger by incorporating Ethereum-compatible smart contracts through a new sidechain, broadening its utility from basic transactions to encompass more intricate functionalities such as decentralized exchanges and token creation.
This advancement involves leveraging the Axelar network for cross-chain token transfers, with Wrapped XRP (eXRP) serving as the predominant token on this sidechain, facilitating increased interoperability and engagement among developers.
The integration of Ethereum-compatible smart contracts into the XRP Ledger signifies a significant move that bolsters the core aspects of the closely associated XRP token. Smart contracts are essentially programs that automate the processes involved in blockchain transactions, enabling capabilities beyond simple transfers, such as token issuance, trade executions, and the establishment of decentralized exchanges and financial applications.
Ripple has already initiated progress towards implementing smart contract functionality within the XRP Ledger ecosystem through the XRPL EVM sidechain. This sidechain is poised to introduce Ethereum Virtual Machine (EVM) compatibility to the XRP community, allowing developers to utilize familiar tools and programming languages, thereby broadening the appeal of the XRP Ledger to a global developer audience.
The XRP Ledger functions as an open-source blockchain network that utilizes XRP tokens to facilitate and record financial transactions. Ripple commenced testing a method for developers to deploy Ethereum-compatible smart contracts on the XRP Ledger blockchain in 2022, marking a significant step towards expanding the platform’s capabilities.
The Ethereum Virtual Machine (EVM) serves as the software responsible for executing smart contracts on the Ethereum network. A sidechain operates as a parallel blockchain to the main network, in this case, the XRP Ledger.
The XRPL EVM sidechain will leverage the crypto bridging service provided by Axelar to enable users to transfer tokens between itself and 55 other blockchains. Wrapped XRP (eXRP), which represents XRP on alternative networks, will function as the native asset and gas token on the sidechain.
In conclusion, Ripple’s integration of Ethereum-compatible smart contracts through a new sidechain on the XRP Ledger represents a significant step towards expanding the platform’s capabilities and engaging a broader developer community.
