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Ripple Introduces Ethereum-Compatible Smart Contracts on XRP Ledger
Discover how Ripple is transforming the XRP Ledger by introducing Ethereum-compatible smart contracts, enabling developers to leverage enhanced capabilities and create innovative decentralized applications in a seamless ecosystem.
Ripple Expands XRP Ledger with Ethereum-Compatible Smart Contracts
Ripple is taking significant steps to enhance the functionality of the XRP Ledger by introducing Ethereum-compatible smart contracts through a new sidechain. This advancement marks a pivotal shift from the Ledger’s traditional role of processing basic transactions to supporting complex applications like decentralized exchanges and token issuance.
Central to this development is the integration of the Axelar network, which will facilitate cross-chain token transfers. The Wrapped XRP (eXRP) will serve as the primary token on this sidechain, promoting greater interoperability and engaging a broader spectrum of developers in the ecosystem.
In a recent announcement, Ripple stated, “Progress towards smart contract functionality is already underway in the XRP Ledger ecosystem with the XRPL EVM sidechain.” This initiative will introduce Ethereum Virtual Machine (EVM) compatibility to the XRP community, enabling developers to utilize familiar tools and programming languages. Consequently, this will broaden the appeal of the XRP Ledger to a global developer audience.
The XRP Ledger, an open-source blockchain network, utilizes XRP tokens to efficiently process and record financial transactions. Ripple initially began testing the deployment of Ethereum-based smart contracts on the XRP Ledger in 2022, signaling its commitment to enhancing the platform’s capabilities.
The Ethereum Virtual Machine (EVM) is the crucial software environment that executes smart contracts on the Ethereum blockchain. Meanwhile, a sidechain operates as a parallel blockchain to the main XRP Ledger, allowing for enhanced functionalities without compromising the integrity of the primary network.
The XRPL EVM sidechain will leverage the crypto bridging service provided by Axelar, enabling users to transfer tokens seamlessly between itself and 55 other blockchains. Additionally, Wrapped XRP (eXRP), which acts as a representation of XRP on alternative networks, will function as the native asset and gas token on this innovative sidechain.