Ripple has officially confirmed plans to bring smart contract functionality to the XRP Ledger (XRPL) through a dual-path strategy. This update marks a major step in enhancing the network’s capabilities and broadening its use cases for developers and enterprises.
The XRP Ledger, though one of the oldest blockchain networks, has historically lacked native smart contract support. With this new initiative, Ripple aims to significantly boost programmability, interoperability, and institutional utility on the XRPL.
Why Smart Contracts Matter for XRPL
Smart contracts are self-executing contracts where terms are written directly into code. They enable decentralized applications (dApps), automated agreements, and complex financial products without intermediaries.
For XRPL, adding smart contracts could attract more developers, increase network activity, and support deeper integration with decentralized finance (DeFi) and enterprise blockchain solutions.
Unlike some competing networks, XRPL has prioritized performance and scalability. Introducing smart contracts is expected to maintain these strengths while adding flexibility.
Two-Path Strategy for Programmability
Ripple’s approach includes two parallel solutions for introducing smart contracts:
- Native Smart Contracts: Enhancements directly on the XRPL Mainnet.
- EVM Sidechain: A compatible sidechain that connects XRPL to Ethereum Virtual Machine (EVM) ecosystems.
This dual method allows developers to choose between high-performance native development and EVM familiarity, maximizing reach and usability.
Native Smart Contract Capabilities
Ripple plans to introduce new layer-1 features to the XRPL Mainnet. These will include permissionless smart contracts that developers can use without requiring full network consensus for every change.
This approach is designed to keep transaction costs low and performance high while allowing customization. An XLS standards proposal will be released to gather community feedback before implementation.
The XRPL EVM Sidechain
Developed in partnership with Peersyst, the XRPL EVM Sidechain will enable Ethereum compatibility. This means developers can port existing EVM-based dApps to XRPL with minimal changes.
The sidechain will use eXRP—a wrapped version of XRP—as its native gas token. It will also connect to over 55 blockchains via Axelar bridge technology, greatly expanding its interoperability.
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Benefits for Developers and Users
The addition of smart contracts to XRP Ledger offers several advantages:
- Easier Adoption: Developers from Ethereum and other EVM chains can migrate smoothly.
- Lower Costs: Native contracts aim to be gas-efficient and scalable.
- Greater Utility: Institutions can build custom solutions on a trusted ledger.
- Interchain Connectivity: Users can move assets across multiple networks seamlessly.
Community and Expert Reactions
The announcement was met with enthusiasm from key community figures and Ripple’s own team.
David Schwartz, Ripple’s Chief Technology Officer, expressed excitement about the new technical possibilities. He emphasized the importance of both native and sidechain-based programmability.
Well-known community member WrathofKahneman (WOK) also praised the balanced strategy. He highlighted Ripple’s inclusive approach through open proposals and community discussion.
Some questions remain around implementation details, such as:
- Will sharding or subnetting be used to maintain speed?
- How will security be ensured across two environments?
- What will the timeline look like for rollout?
Frequently Asked Questions
What are smart contracts on XRP Ledger?
Smart contracts on XRPL will allow developers to build automated agreements and applications directly on the ledger or through an EVM-compatible sidechain, increasing its functionality beyond payments.
When will smart contracts be available on XRPL?
Ripple has announced that native and sidechain smart contract capabilities are slated for 2025. Development is underway, with community proposals expected soon.
Will this affect XRP transaction speed or cost?
The design aims to preserve XRPL’s high throughput and low fees. Native contracts will be optimized for performance, while the sidechain operates separately.
Do I need to convert XRP to eXRP?
Only users interacting with the EVM sidechain will need to wrap XRP into eXRP for gas fees. Mainnet users can continue using XRP as before.
Can I use MetaMask on the XRPL EVM Sidechain?
Yes, the sidechain will be compatible with Ethereum tools like MetaMask, making it easy for developers and users to engage with familiar interfaces.
Is the XRPL smart contract upgrade secure?
Ripple is following a community-driven proposal process and has partnered with established firms for auditing and development to ensure security and reliability.
Ripple’s move to introduce smart contracts represents a pivotal evolution for the XRP Ledger. By supporting both native upgrades and an EVM sidechain, they are creating a flexible, scalable, and developer-friendly environment.
This could significantly widen the use cases for XRP and strengthen its role in the growing blockchain ecosystem.