Ripple has announced the introduction of smart contracts on the XRP Ledger mainnet. This move will bring advanced programmability to the blockchain, expanding its capabilities for NFTs, automated market makers, and decentralized exchanges.
Dual Advancements in Programmability
Enhancements to the XRP Ledger's programmability will come through two key developments: 1. **Native Smart Contracts on XRP Ledger Mainnet**: Currently in the research phase, this upgrade will enable smart contract functionality directly on the mainnet. This will allow developers to create custom solutions without requiring broad community consensus or changes to the core network. 2. **XRPL EVM Sidechain**: Slated for deployment in the coming months, this sidechain will bring Ethereum Virtual Machine (EVM) compatibility to the XRP ecosystem, allowing developers to use familiar Ethereum tools and programming languages to build applications on the XRP Ledger.
Enhancing Mainnet Functionality
The introduction of smart contracts will build on XRP Ledger's foundation by allowing developers to: * **Create Custom Solutions**: The new smart contract capabilities will enable bespoke functionalities that cater to specific business needs without impacting the broader network. * **Improve Efficiency**: By integrating smart contracts directly into the mainnet, Ripple aims to enhance the speed and cost-effectiveness of transactions, making the ledger more attractive for various applications. Existing smart contract standards, such as Hooks from XRPL Labs, will serve as the foundation for this development. These standards will reportedly allow developers to leverage XRP Ledger’s core strengths while creating tailored smart contract solutions.
XRPL EVM Sidechain Development
In collaboration with Peersyst, the XRPL EVM Sidechain brings Ethereum compatibility to the XRP ecosystem. This sidechain will allow developers to use Ethereum’s tools and languages, making it easier to build and deploy smart contracts. A key feature of this sidechain is its ability to connect with over 55 other blockchains through the Axelar bridge. This cross-chain functionality will enable transactions and interactions between the XRPL EVM Sidechain, the XRP Ledger, and other blockchain networks. Wrapped XRP (eXRP) will act as the native asset and gas token on the sidechain, ensuring secure and efficient cross-chain transactions.
Ripple's advancements are expected to impact the cryptocurrency landscape in 2025. The introduction of smart contracts and the XRPL EVM Sidechain will address the needs of both institutional DeFi users and developers, allowing for more tailored and innovative solutions. Jasmine Cooper, Ripple’s Head of DeFi Product, recently talked about a new token standard: multi-purpose tokens (MPTs). These tokens are designed for real-world assets and enable the storage of metadata directly with the asset, enhancing scalability and flexibility, making XRPL more suitable for institutional use cases.
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