- Ripple’s development department, RippleX, has announced a significant update aimed at implementing Ethereum Virtual Machine (EVM) compatibility on the XRP Ledger (XRPL).
- This development promises to foster greater interoperability and pave the way for decentralized finance (DeFi) and real-world asset (RWA) tokenization on the XRPL.
- “We collectively believe that the future of blockchain is multi-chain,” RippleX emphasized in their blog, demonstrating the strategic importance of this move.
RippleX unveils major update for XRPL EVM sidechain, aiming to boost DeFi and asset tokenization by incorporating Ethereum compatibility.
Ripple Partners With Axelar For EVM Bridge
Initially announced in October 2022, the integration aims to introduce EVM capabilities to the XRPL devnet. Ripple detailed the sidechain in a comprehensive blog post as a groundbreaking innovation.
The RippleX team asserted, “By bringing Ethereum Virtual Machine compatibility to XRPL, we bridge the functional gap between the XRP Ledger and Ethereum, enriching it with existing Ethereum tools and decentralized apps.” This integration is expected to amplify the XRPL ecosystem’s utility and extensiveness.
The newly minted XRPL EVM Sidechain, leveraging a bridge enabled by Axelar, uses wrapped XRP (eXRP) for native assets and gas tokens. This bridge is essential for smooth asset transfers between XRPL and the EVM sidechain, ensuring top-notch interoperability and efficient transaction processing.
Moreover, RippleX highlighted their collaboration with Peersyst Technology, noting, “Our partnership with Peersyst aims to broaden XRPL’s interoperability. Axelar’s production-ready bridge brings wrapped XRP (eXRP) to the XRPL EVM sidechain.” Ferran Prat, CEO of Peersyst, mentioned, “We are migrating the main bridge to Axelar on the devnet.”
Axelar’s system fosters a decentralized bridge managed by numerous validators, enhancing security and facilitating more extensive cross-chain interactions. Currently, Axelar has a network of 75 validators implementing rigorous security measures, ensuring the infrastructure’s robustness.
The new sidechain also seeks to improve the user experience, previously complicated by the need for different bridges for different transaction types. Axelar’s technology simplifies the XRPL to EVM transfers, making the process more user-friendly.
“The existing process of transferring tokens via XLS-38 has been challenging. Utilizing two distinct bridges—XLS-38 for XRP and Axelar for other tokens—complicates user interactions. A unified bridge simplifies the process, making it more intuitive and user-centric,” RippleX explained.
RippleX also acknowledged the ongoing relevance of the XLS-38 proposal, considering its role in allowing XRPL developers to build custom sidechains. While the proposal awaits community validation, Ripple’s UNL validator will continue to vote ‘No’ until there’s more feedback and validation.
Over the next year, Ripple engineers will focus on refining the EVM sidechain’s functionalities based on community input and adoption metrics. By engaging actively with developers, Ripple aims to adapt the XRPL to user requirements.
Conclusion
The integration of EVM compatibility into the XRPL through the Axelar bridge represents a pivotal development for Ripple and the broader blockchain ecosystem. As Ripple engineers continue to engage with the community, the XRPL is set to evolve, ensuring it meets the users’ needs efficiently. This development not only enhances interoperability but also broadens the functionalities available on XRPL, signaling a promising future for DeFi and tokenization.
