The XRP Ledger (XRPL) stands on the brink of a transformative shift. Ripple, the company behind XRP, is gearing up to introduce smart contracts, with plans to roll out this functionality as soon as next year. Currently, smart contracts are in the research phase, but the groundwork is being laid with the development of XRPL Hooks, which will serve as the foundation for integrating these advanced capabilities on the mainnet.
Ripple’s vision for smart contracts on the XRPL is clear: permissionless access, ease of learning, and customization. Yet, the company is also mindful of the potential impact on performance and infrastructure costs. Despite the ambitious goals, Ripple has provided few details on how it intends to implement smart contracts, leaving the crypto community eager for more information.
The journey to smart contracts on XRPL has been long and complex. Matt Hamilton, Ripple’s former director of developer relations, hinted at ongoing development back in December 2022. Even earlier, in 2020, former Ripple CTO Stefan Thomas revealed that a working prototype existed but was shelved due to concerns over usability and security. One of the significant challenges was selecting a programming language for writing smart contracts—a decision that remains unresolved.
XRP Ledger’s EVM
Adding another layer of complexity, Ripple is also working on an XRPL EVM sidechain. Announced by the RippleX team in June, this sidechain aims to enable developers to create decentralized applications (dApps) that combine the best features of the XRP Ledger and Ethereum Virtual Machine (EVM). This move could position XRPL as a formidable player in the decentralized finance (DeFi) space.
Ripple CEO Brad Garlinghouse has been vocal about the company’s vision. He recently stated that the foundations of crypto infrastructure, which serve real-world use cases, are becoming more robust by the day. This statement comes on the heels of the XRP Ledger’s introduction of an Automated Market Maker (AMM) functionality earlier this year. The AMM feature is designed to enhance liquidity within the XRP Ledger, making it a more significant contender in the DeFi landscape.
Metrics tell a compelling story of Ripple’s progress. Since its inception, the XRP Ledger has processed over 70 million transactions, with daily volumes often surpassing 1.5 million transactions. The ledger’s speed, boasting an average transaction time of 3-5 seconds, is one of its key strengths. With the addition of smart contracts and the XRPL EVM sidechain, these metrics are poised to grow, potentially leading to a surge in dApp development and DeFi activities on the platform.
As Ripple moves forward, the crypto world watches closely. The introduction of smart contracts on the XRP Ledger could mark a new era for Ripple, solidifying its position not just as a payment protocol but as a versatile, multifunctional blockchain platform. The road ahead may be uncertain, but the potential for innovation and growth is undeniable.