Ripple has introduced an Ethereum Virtual Machine (EVM)-compatible sidechain bridging the XRP Ledger with the Ethereum ecosystem.
This new development integrates XRP’s high transaction throughput and low-cost advantages with Ethereum’s extensive DeFi application ecosystem and advanced smart contract capabilities.
Developers gain the ability to build EVM-compatible decentralized applications (dApps) on the sidechain while utilizing XRP’s inherent speed and reliability, significantly broadening potential applications in areas like decentralized finance and non-fungible tokens (NFTs).
The sidechain operates using XRP as its native currency network fee, ensuring transaction cost efficiency. Secure cross-chain communication between the new sidechain and the primary XRP Ledger is facilitated via the Axelar bridge.
Ripple positions this strategic move to solidify XRP’s role in institutional blockchain use cases and advance multichain interoperability efforts, aligning with wider industry adoption trends.
This launch underscores Ripple’s dedicated focus on enhancing scalability, improving cost efficiency, and deepening integration with major ecosystems like Ethereum, aiming to bolster XRP’s relevance and utility within the rapidly evolving DeFi sector.