The XRP Ledger (XRPL) is on the cusp of a monumental transformation. Ripple, the powerhouse behind XRP, is setting the stage to introduce smart contracts, with plans to launch this game-changing feature as early as next year. Although smart contracts are still in the research phase, the groundwork is already being laid with the development of XRPL Hooks, which will underpin these advanced capabilities on the mainnet.
Ripple’s ambitious vision for integrating smart contracts into the XRPL emphasizes permissionless access, user-friendly learning, and high customization. However, the company is also considering the implications for performance and infrastructure costs. Despite these lofty goals, Ripple has been tight-lipped about the specifics of the implementation, leaving the crypto community in suspense.
The path to smart contracts on XRPL has been anything but straightforward. Back in December 2022, Matt Hamilton, Ripple’s former director of developer relations, hinted at ongoing development efforts. Earlier, in 2020, former Ripple CTO Stefan Thomas disclosed that a working prototype was in place but had been shelved due to concerns over usability and security. A critical challenge remains the choice of programming language for smart contracts—a decision that Ripple has yet to finalize.
Complicating matters further, Ripple is also developing an XRPL EVM (Ethereum Virtual Machine) sidechain. Announced by the RippleX team in June, this sidechain is designed to empower developers to build decentralized applications (dApps) that harness the strengths of both the XRP Ledger and the EVM. This move could propel XRPL into the heart of the decentralized finance (DeFi) sector, amplifying its role in the blockchain ecosystem.
Ripple CEO Brad Garlinghouse has been outspoken about the company’s vision, recently highlighting the growing robustness of crypto infrastructure tailored to real-world applications. This sentiment follows the XRP Ledger’s introduction of Automated Market Maker (AMM) functionality earlier this year, aimed at boosting liquidity and solidifying XRPL’s presence in the DeFi arena.
Also Read: Ripple’s Smart Contract Pivot Sparks 4-Year Developer Rift – Wietse Wind Warns Of XRP Ledger Fallout
The XRP Ledger’s metrics paint a promising picture. With over 70 million transactions processed since its inception and daily volumes frequently exceeding 1.5 million, XRPL’s speed—boasting an average transaction time of 3-5 seconds—sets it apart. The anticipated addition of smart contracts and the XRPL EVM sidechain is expected to further accelerate growth, potentially spurring a surge in dApp development and DeFi activities on the platform.
As Ripple navigates this transformative journey, the crypto world watches with bated breath. The introduction of smart contracts could redefine Ripple’s role, transforming it from a mere payment protocol into a versatile, multifunctional blockchain platform. While the future remains uncertain, the potential for innovation and expansion is undeniably immense.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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