As a long-term crypto investor with a focus on decentralized finance (DeFi) and real-world asset (RWA) tokenization, I’m excited about Ripple’s latest announcement regarding the XRPL EVM sidechain update. The integration of Ethereum Virtual Machine (EVM) compatibility is a significant step towards bridging the functional gap between XRPL and Ethereum, enhancing the utility and reach of the XRP Ledger (XRPL) ecosystem.
As an analyst, I’m excited to share that RippleX, the innovative arm of Ripple Labs, has announced a significant upgrade to the XRP Ledger (XRPL) through its EVM sidechain. This game-changing update brings Ethereum Virtual Machine (EVM) compatibility to XRPL. The implications are vast as this improvement will boost interoperability and pave the way for decentralized finance (DeFi) and real-world asset (RWA) tokenization on XRPL, opening up new opportunities in the digital asset space.
Ripple Partners With Axelar For EVM Bridge
Back in October 2022, the plan to add EVM (Ethereum Virtual Machine) functionality to XRPL was unveiled on the XRP development network for the first time. In an insightful blog entry published by Team Ripple, this groundbreaking development was emphasized as a significant advancement.
As an analyst, I’m thrilled to share some exciting news about the future direction of blockchain technology, specifically in relation to XRP Ledger (XRPL). Collectively, we believe that a multi-chain approach is the way forward, and I’m pleased to announce that we’re taking steps to make XRPL more compatible with Ethereum. This compatibility will bridge the functional gap between these two platforms, bringing the richness of Ethereum’s tools and Decentralized Applications (DApps) to XRPL. By doing so, we aim to expand the utility and reach of XRP Ledger, providing a more comprehensive ecosystem for developers and users alike.
The XRPL EVM Sidechain, now formally named, functions with a bridge provided by Axelar. This bridge employs wrapped XRP (eXRP) as both the native asset and fuel token. The importance of this bridge lies in its role of enabling smooth asset transfers between the XRPL and EVM sidechains, preserving strong interoperability, and ensuring efficient transaction processing.
The blog post highlights the technical partnership between Ripple and Peersyst Technology. It explains that Ripple’s engineers have been working closely with Peersyst to enhance XRPL’s interoperability. Furthermore, Axelar, a proven and functional bridge, enables wrapped XRP (eXRP) to be used as a native currency on the XRPL EVM sidechain. Ferran Prat, CEO of Peersyst, shared that his team is currently transferring the main bridge to Axelar for testing in the development network.
Axelar’s integration offers a secure and reliable decentralized bridge for broader cross-chain interactions, managed by a network of 75 validators. These validators strictly adhere to security measures such as key rotation policies, fortifying the infrastructure against potential threats and maintaining its trustworthiness.
The latest sidechain introduction aims to make the user experience smoother by eliminating the need for various bridges for distinct transaction types through Axelar’s technology, streamlining XRPL to EVM transfers.
Transferring new tokens through the XLS-38 process is currently quite a challenge. At present, this involves utilizing two different bridges—XLS-38 for XRP transactions and Axelar for handling other tokens and executing cross-chain smart contracts. By merging these functionalities into a single bridge, the entire process becomes streamlined and more user-friendly, making it simpler and more intuitive for users. (RippleX)
In addition, the business highlights the continued relevance of the XLS-38 proposal in its blog article, detailing how it supports XRP Ledger (XRPL) programmers in generating bespoke sidechains. The proposition is still under consideration via voting processes; however, Ripple’s UNL validator has declared an intention to vote ‘No’ until more confirmation and community input are obtained.
As a researcher studying Ripple’s plans for their EVM (Ethereum Virtual Machine) sidechain, I can share that over the next year, Ripple’s team will be closely monitoring community feedback and adoption metrics to refine and potentially expand the functionalities of this technology. By actively engaging with the developer community and gathering valuable insights from them, Ripple intends to ensure the XRP Ledger (XRPL) remains a dynamic platform that effectively caters to the evolving needs of its users.
At press time, XRP traded at $0.483.
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2024-06-12 16:12