Ripple to launch smart contracts on XRP Ledger (XRPL), boosting DeFi capabilities and DApps

Prominent cross-border payments firm Ripple is set to introduce smart contracts to the XRP Ledger (XRPL).

According to the announcement made by Team Ripple on September 2, this move aims to expand XRPL’s capabilities and attract developers, fostering the creation of new decentralized applications (DApps).

The integration of smart contracts is poised to enhance the programmability of XRPL, positioning it as a competitive blockchain platform in the decentralized finance (DeFi) landscape.

Expanding XRPL’s capabilities with smart contracts

Ripple’s decision to incorporate smart contracts into the XRP Ledger represents a significant leap forward for the blockchain ecosystem.

Smart contracts are self-executing contracts with the terms of the agreement directly written into code, enabling automatic execution when specific conditions are met. They eliminate the need for intermediaries, making transactions more efficient, secure, and transparent.

Ripple’s smart contracts are set to go live in the XRPL Ethereum Virtual Machine (EVM) sidechain, developed in collaboration with blockchain firm Peersyst, within the coming months, marking a pivotal development for the XRPL community.

The introduction of smart contracts on XRPL is expected to unlock various use cases, ranging from decentralized finance (DeFi) to supply chain management.

By bringing EVM compatibility to XRP, Ripple aims to attract developers who are already familiar with Ethereum-based smart contracts.

This initiative will allow them to deploy DApps on the XRPL, leveraging Solidity, a programming language commonly used on Ethereum.

After the introduction of smart contracts, the XRPL sidechain will provide a familiar environment for Ethereum developers, broadening XRPL’s appeal and driving innovation within the ecosystem.

Ripple’s long-term vision includes bringing smart contracts to the XRPL mainnet, although this remains in the research phase with no definite timeline for deployment.

The momentum for this development is expected to accelerate in 2025, as Ripple continues to refine its approach and gather feedback from the developer community.

Impact on Ripple (XRP) price

The introduction of smart contracts to the XRP Ledger (XRPL) is not just a technical upgrade but also a catalyst for potential market activity.

XRP, the native cryptocurrency of the XRPL, has seen notable price movements in recent times, partly driven by the anticipation of these developments.

Currently, XRP is priced at $0.57, after a 3% increase over the past 24 hours, reflecting a positive market response to Ripple’s ongoing innovations.

Despite some volatility, with a 7-day decrease of 2.5% and a 14-day dip of 6.1%, XRP has shown resilience, boasting a 5.1% increase over the past 30 days.

Over the past year, XRP has gained 13.7% despite its legal woes with the US SEC, highlighting its long-term growth potential.

Source: TradingView

The introduction of smart contracts could further enhance XRP’s utility, potentially driving demand as developers and users increasingly engage with the XRPL ecosystem.

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