The XRP Ledger (XRPL) has announced a significant development by integrating with the Web3 ecosystem through the launch of the EVM sidechain in collaboration with Axelar and Squid, enabling XRPL to interact with over 80 blockchain networks.
Overview of the XRPL EVM Sidechain
The XRPL EVM sidechain is a new blockchain dedicated to the XRPL ecosystem. This sidechain utilizes the Ethereum Virtual Machine (EVM), allowing users to develop and interact with Ethereum-compatible smart contracts. The sidechain functions as a 'sidechain' to XRPL by sharing XRP as a native token between both networks with a one-to-one bridging ratio. The bridging process is powered by Axelar's decentralized interoperability protocol, ensuring secure asset transfers.
Role of Axelar and Squid in the Integration
Axelar plays a critical role in facilitating this interoperability as a decentralized network. The Interchain Token Service (ITS) manages token movements and ensures secure communication between the XRPL mainnet and EVM sidechain. Squid is a decentralized application designed for cross-chain swaps, simplifying the token exchange process and enabling seamless token interactions across more than 80 blockchain networks.
Functionality of CORAL and Its Significance
The introduction of CORAL, a Cross-Chain Order Routing and Auction Layer integrated into Squid, enhances liquidity by minimizing reliance on underlying blockchains and optimizing the swap process. CORAL uses a Request-For-Quote (RFQ) auction model to match trade requests with market makers, bringing reliability to swaps. It operates based on user intent, making the swapping experience significantly more streamlined.
The integration of XRPL with Axelar, the EVM sidechain, Squid, and CORAL provides new opportunities for users. XRP can now interact directly with diverse blockchain networks, allowing token swaps across chains and participation in DeFi ecosystems beyond XRPL.
