Ripple to Integrate Ethereum-Compatible Smart Contracts into XRP Ledger

Ripple is set to enhance the XRP Ledger by integrating Ethereum-compatible smart contracts via a new sidechain. This move will expand the ledger's functionality beyond basic transactions to include complex applications like decentralized exchanges and token issuance.

Key Takeaways

• Ripple will add Ethereum-compatible smart contracts via a new sidechain to XRP Ledger.

• The Axelar network will be used for cross-chain token transfers, with wrapped XRP (eXRP) as the primary token on this sidechain.

• This development aims to broaden the XRP Ledger’s appeal to a global developer community.

Expanding XRP Ledger's Functionality

Ripple is enhancing the XRP Ledger by integrating Ethereum-compatible smart contracts via a new sidechain. This will expand its functionality beyond basic transactions to include complex applications like decentralized exchanges and token issuance.

Cross-Chain Token Transfers

The development includes the use of the Axelar network for cross-chain token transfers. Wrapped XRP (eXRP) will act as the primary token on this sidechain, facilitating broader interoperability and developer engagement.

Smart Contracts and EVM Compatibility

Smart contracts are programs that automate the actions required in a blockchain transaction, allowing for features beyond mere transactions. These include issuing tokens, processing trades, and creating decentralized exchanges and financial applications.

“Progress towards smart contract functionality is already underway in the XRP Ledger ecosystem with the XRPL EVM sidechain,” Ripple said in a release. “This sidechain will bring Ethereum Virtual Machine (EVM) compatibility to the XRP community, allowing developers to employ familiar tools and programming languages.”

The Role of Axelar Network

The XRPL EVM sidechain will use the crypto bridging service Axelar to allow users to transfer tokens between itself and 55 other blockchains. Wrapped XRP (eXRP) will serve as the native asset and gas token on the sidechain.

Developer Engagement

Ripple first started testing a way for developers to deploy smart contracts made for Ethereum on the XRP Ledger (XRPL) blockchain in 2022. The integration of EVM compatibility aims to broaden the XRP Ledger’s appeal to a global developer community.

Conclusion

Ripple's move to integrate Ethereum-compatible smart contracts into the XRP Ledger marks a significant step in expanding its functionality and appeal. By leveraging the Axelar network for cross-chain token transfers and introducing wrapped XRP (eXRP) as the primary token, Ripple aims to foster broader interoperability and developer engagement.

Sources

• Ripple Will Soon Add Ethereum Compatible Smart Contracts to XRP Ledger, CoinDesk.