Ripple Proposes Massive XRP Ledger Upgrade to Support DeFi and Smart Contract Capabilities

Ripple is proposing a major XRP ledger upgrade, which the company says could unleash decentralized finance (DeFi) and smart contracts in the broader XRP ecosystem without reducing the efficiency of XRPL. According to the company's chief technology officer, David Schwartz, Ripple plans to achieve this using federated sidechains. In a new blog post, Schwartz explains that sidechains will be linked to the XRPL by "federators", i.e. pieces of software run by parties that use validators on at least one sidechain. Sidechains will operate like their own blockchains, but XRP and issued tokens can move between them and XRPL. “This allows developers to implement new features such as native smart contracts that work seamlessly with XRP and XRP Ledger, while also maintaining the existing 'sleek and efficient' feature set of XRP Ledger. Unified Sidechains allows for experimentation and specialization so developers can leverage the power of XRPL on a sidechain that acts as their own blockchain. For example, imagine the potential of XRPL to expand into new functionality by shrinking its capabilities to a specific subset for a specific use case, or even creating a private, parallel network for an authoritative blockchain. Schwartz, one of the original architects of the XRP ledger, adds that successful functions "baked" into sidechains can eventually be migrated to the XRPL mainnet. However, the CTO states that while some changes are needed in the software, it does not require any changes to the XRPL itself, which activates the sidechains. “Making these changes is probably the biggest part of this effort because while they won't be enabled in the XRPL, there are still risks associated with changing the software. For example, existing code may need to be migrated or modified, creating the risk of accidental change of behavior." Any XRPL change requires 80% ap

Join the Discussion

  • BrokerEUR/USD
    IG 0.6pips (fixed) margin: 3.33%
    LCG 0.3pips (variable) margin: 3.33%
  • Back to top