Ripple, the blockchain technology startup behind the XRP Ledger (XRPL), has made a radical announcement that might completely change the scene of distributed finance (DeFi) and real-world asset (RWA) tokenization.
The most exciting news from Ripple is the XRPL’s incorporation of Ethereum Virtual Machine (EVM) compatibility, which the developer community has much awaited.The official name for the much awaited sidechain,XRPL EVM Sidechain opens the highlight of this news.
This sidechain will open a lot of fresh prospects for XRPL developers so they may use the XRP Ledger’s special characteristics and access the active ecosystem of Ethereum-based apps.
Ripple Leads Blockchain Innovation
The idea of interoperability drives this integration from the core. Developers will be able to easily move assets between the two networks by linking the XRPL EVM Sidechain to the XRPL mainnet across a bridge.
Using encapsulated XRP (eXRP), which both acts as the native asset and the gas token, helps to provide seamless and quick transactions across platforms, thus central to this bridge.
Furthermore, Axelar has teamed with Ripple to act as the sole source of native gas token (eXRP) from the XRPL. With Axelar’s vast network spanning more than 55 blockchains, XRPL and Ethereum may be seamlessly interoperable as well as across a wide spectrum of blockchain ecosystems.
The complexity of the present token transfer system via XLS-38 drives the choice to unify the bridge architecture under Axelar. Ripple seeks to improve user experience and open the path for general acceptance of cross-chain smart contracts by simplifying the procedure into a single bridge solution.
Although the XLS-38 modification prepares the way for XRPL to create unique sidechains, Ripple has underlined the need of community input in guiding next advancements. Over the following 12 to 15 months, the company’s engineers will actively track the adoption and interest in XLS-38 and provide modifications depending on actual usage cases and developer requests.
