Ripple is set to expand the functionality of its XRP Ledger by introducing Ethereum-compatible smart contracts through a new sidechain. This development marks a significant enhancement to XRP's capabilities, allowing it to support more complex applications beyond basic transactions.
Expanding XRP Ledger's Capabilities
The new sidechain, built on the XRP Ledger, will integrate Ethereum Virtual Machine (EVM) compatibility, enabling developers to use familiar tools and programming languages to create decentralized applications (dApps). The Axelar network will be used for cross-chain token transfers, with Wrapped XRP (eXRP) serving as the primary token on this sidechain.
Ripple's move to add smart contracts to the XRP Ledger reflects its broader strategy to engage the global developer community and expand the use cases for XRP. The sidechain will allow the XRP Ledger to support decentralized exchanges, token issuance, and other advanced blockchain functionalities.
A Step Towards Greater Interoperability
The integration of Ethereum-compatible smart contracts is part of Ripple's efforts to increase interoperability across blockchains. By using the Axelar network, XRP Ledger will connect with 55 other blockchains, further enhancing its utility and appeal to developers.
Ripple began testing the integration of Ethereum smart contracts on the XRP Ledger in 2022. With the upcoming launch of the XRPL EVM sidechain, Ripple is poised to significantly boost the fundamentals of the XRP token and its ecosystem.
Read more at CoinDesk.
