Ripple is set to integrate Ethereum-compatible smart contracts into the XRP Ledger through a new sidechain, significantly enhancing the ledger’s capabilities beyond simple transactions. This update, involving the use of the Axelar network for cross-chain token transfers, will feature Wrapped XRP (eXRP) as the primary token on the sidechain, facilitating broader interoperability and engagement from developers.
The introduction of these smart contracts will enable more complex applications, such as decentralized exchanges and token issuance, on the XRP Ledger. Ripple announced that the development of smart contract functionality is already in progress with the XRPL EVM sidechain, which will bring Ethereum Virtual Machine (EVM) compatibility to the XRP ecosystem. This will allow developers to use familiar tools and programming languages, increasing the appeal of the XRP Ledger to a global developer community.
The XRP Ledger, an open-source blockchain network that utilizes XRP tokens for financial transactions, first began exploring the deployment of Ethereum-compatible smart contracts in 2022. The XRPL EVM sidechain will use Axelar’s crypto bridging service to enable token transfers between itself and 55 other blockchains, with Wrapped XRP (eXRP) serving as the native asset and gas token on this new sidechain.
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