Ripple, a leading provider of blockchain-based payment solutions, has unveiled plans to integrate Ethereum Virtual Machine (EVM)-compatible smart contracts into the XRP Ledger (XRPL). This strategic upgrade aims to expand the functionality of the XRPL ecosystem, enabling developers to build and deploy decentralized applications using familiar Ethereum tools.
The integration will be facilitated through a new EVM-compatible sidechain developed in collaboration with Peersyst, a specialized blockchain technology firm. This sidechain is designed to bridge the XRPL with Ethereum and other major blockchain networks, fostering greater interoperability and expanding the utility of the XRP token.
Enhancing Cross-Chain Interoperability
A core component of this initiative is the partnership with Axelar, a cross-chain interoperability protocol. Axelar will provide the underlying infrastructure to connect the XRPL EVM sidechain with over 55 other blockchain networks. This extensive connectivity allows for seamless cross-chain token transfers and broadens the scope of decentralized finance (DeFi) applications that can operate across multiple ecosystems.
The sidechain will utilize Wrapped XRP (eXRP), a tokenized representation of XRP, as its primary medium of exchange. This approach ensures native asset compatibility while enabling XRP to function within EVM-based smart contracts and decentralized applications.
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Development and Mainnet Deployment
Ripple has actively encouraged DeFi developers and community members to contribute to the design and functionality of the new smart contract capabilities. The sidechain is tailored for developers experienced with Ethereum’s programming language, Solidity, allowing them to deploy dApps without a steep learning curve.
While the EVM sidechain is expected to launch within the next few months, Ripple is also researching the potential deployment of smart contracts directly on the XRPL mainnet. This secondary initiative remains in the early research phase, with no confirmed timeline for public release.
Community Reaction and Market Impact
The announcement has generated mixed reactions within the XRP community. Some members expressed skepticism due to past delays, while others acknowledged the long-term potential of enhanced smart contract functionality.
Following the news, XRP’s market price experienced positive momentum, rising significantly amid broader market developments. Recent legal advancements between Ripple and the U.S. Securities and Exchange Commission (SEC) have also contributed to renewed investor interest.
Frequently Asked Questions
What is the XRPL EVM sidechain?
The XRPL EVM sidechain is a blockchain extension that enables Ethereum-compatible smart contracts to operate in conjunction with the XRP Ledger. It allows developers to use Solidity and other Ethereum tools while maintaining access to XRPL’s native features.
How does Axelar contribute to this development?
Axelar provides cross-chain bridging technology that connects the XRPL EVM sidechain to over 55 blockchains. This enables seamless transfer of assets and data across different networks, improving interoperability.
What is Wrapped XRP (eXRP)?
Wrapped XRP is a tokenized version of XRP that represents the asset on non-native blockchains. It allows XRP to be used in EVM-based smart contracts and DeFi applications outside the XRPL.
When will the EVM sidechain be available?
The sidechain is expected to go live within the next few months. However, the deployment of smart contracts on the XRPL mainnet is still under research with no specified launch date.
How will this affect XRP investors?
This development could increase the utility and demand for XRP by enabling its use in a wider range of applications, including DeFi and multi-chain dApps. Market response may reflect growing adoption and technological expansion.
Can developers already build on the sidechain?
While the sidechain is not yet live, Ripple is actively soliciting feedback and participation from developers to refine the platform before its mainnet release.