Ripple and Peersyst Technology have announced plans to launch an EVM-compatible sidechain for the XRP Ledger (XRPL). This development aims to enhance decentralized finance (DeFi) integration and improve interoperability with the Ethereum ecosystem.
The sidechain will enable Ethereum Virtual Machine (EVM) smart contract functionality directly on the XRPL network. This integration is designed to attract Ethereum developers and DeFi projects seeking to leverage XRP’s established speed and scalability.
A key feature involves utilizing wrapped XRP (wXRP) as the gas token for transactions on the new sidechain. This approach is expected to facilitate efficient operations and offer significantly lower transaction fees compared to the Ethereum mainnet.
The collaboration between Ripple and Peersyst Technology specifically targets lowering barriers for Ethereum developers. The goal is to foster a more inclusive blockchain ecosystem and accelerate the adoption of DeFi applications built on the XRPL.
Industry experts anticipate the EVM-compatible sidechain will drive increased liquidity and enable smoother cross-chain asset transfers. Potential integrations, such as Axelar’s bridging technology, are seen as crucial for enhancing overall interoperability.
This strategic move mirrors successful EVM integrations implemented by other blockchain platforms, which historically led to substantial growth in developer activity and project ecosystems. Similar benefits are projected for the XRP Ledger following this deployment.