Ripple to Introduce Native Smart Contracts on XRPL Mainnet: A Game-Changer for the Ecosystem?

Key Takeaways

• The introduction of EVM and smart contracts could make XRPL a formidable L1
• Ripple announced that smart contracts and EVM sidechains will soon be added to the XRP Ledger.
• The Ripple community has demanded smart contracts functionality for a long time.

Ripple, the company behind the cross-border remittance platform XRP ledger (XRPL), said it would finally introduce  smart contract functionality to the mainnet, a development that has been years in the making and highly sought after by its community.

The announcement, made during Korean Blockchain Week, marks a significant step towards enhancing the programmability of the XRP Ledger’s network.

Smart Contract and EVM Functionality on XRPL

With its latest announcement, Ripple is looking to transform XRPL from a platform primarily used for cross-border remittances into a full-fledged, layer-1 network.

The company is pursuing a dual-pronged approach to achieve this: it’s testing smart contract functionality on the XRPL mainnet and developing an Ethereum Virtual Machine (EVM) sidechain.

If successful, this could introduce several essential layer-1 features on the XRP ledger, including the creation of non-fungible tokens (NFTs), automated market makers (AMMs), and decentralized exchanges (DEXs).

The EVM sidechain, being developed in collaboration with Peersyst  since the beginning of this year, would also enable the XRP Ledger to interact with the broader DeFi ecosystem, making it compatible with numerous protocols and services.

The addition of an EVM sidechain could have significant implications for the XRPL ecosystem, potentially increasing its use cases and connections with other blockchains. Especially considering that XRPL’s mainnet will leverage the Axelar bridge and gain access to 55 other blockchains.

While Ripple didn’t offer an exact date for introducing the new programmability functions, the blog post suggests the firm aims to launch next year.

Ripple Community Overjoyed by New Developments

Ripple’s smart contract functionality and EVM integration are a long time coming.

For years, the Ripple-XRP community has clamored for smart contracts on the XRP Ledger. So when Ripple finally made the long-awaited announcement on Sept. 2, the response was jubilant.

As one of the pioneers in the blockchain industry, Ripple has built a loyal following.

However, the Securities and Exchange Commission’s (SEC) lawsuit has hindered its progress, forcing the company to put its US ambitions on hold. Undeterred, Ripple has continued to thrive, expanding its XRP Ledger technology to fuel its business outside the US.

The news sparked a mix of euphoria and caution  among XRP enthusiasts, with some celebrating the breakthrough and others urging restraint  until the product is released.

Jed McCaleb, one of the original architects of XRP Ledger, has said  that Ripple should have focused on bringing smart contracts much earlier or at least worked on them on the side.

About the Author

Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.

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