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Ripple Proposes XRPL Upgrade for DeFi and Smart Contracts

Ripple Proposes XRPL Upgrade for DeFi and Smart Contracts
  • Ripple has put forward a proposal for a massive upgrade for XRPL.
  • The proposed upgrade can bring DeFi and smart contracts to the XRPL system.
  • For this, the company has suggested the use of federated sidechains.

Ripple has put forward a proposal for a major XRP ledger upgrade. The company says that this proposal could catapult decentralized finance (DeFi) and smart contracts across the XRP platform.

It hopes to achieve this without discounting on XRPL’s efficiency. For this purpose, Ripple will be making use of federated sidechains, as stated by David Schwartz, the company’s CTO. In a post on Ripple’s official blog, he explained that federators are pieces of software to operate validators on at least one sidechain. Moreover, the sidechains can operate as their own blockchains. XRP and issued tokens could move between these and the XRPL.

Talking about this update in the post, Shwartz started with, “Today, we are proposing a strategy that enables the best of both worlds.”

This will enable developers to implement new features, such as native smart contracts that interoperate seamlessly with XRP and the XRP Ledger, while also allowing the XRP Ledger to maintain its existing, ‘lean and efficient’ feature set.

He also added that Federated Sidechains will let developers experiment and specialize. This lets them enjoy the power of the XRPL on a sidechain that acts as a blockchain.

Adding an example, he said, “imagine the potential to branch out into new functionality by slimming down the XRPL’s features to a specific subset for a particular use case — or even creating a private, parallel network for a permissioned blockchain.”

Further, the CTO noted that successful features from the sidechains can, in due time, transit to the XRPL mainnet.

This exciting update may have been in the works for quite some time. As per reports, any potential amendments to the XRP Ledger require an 80% approval rating from the ledger’s validators. An amendment that stays above this threshold for two weeks is then activated.

Lisa is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.