Ripple (XRP) to soon see DeFi, smart contracts, and federated sidechains

CryptoSlate

Ripple confirms that federated sidechains are coming. The implementation will vastly increase the use cases of the XRP Ledger, including adding DeFi, NFT, and smart contract capabilities.

You asked, we listened. We’ve introduced Federated Sidechains to the #XRPLedger so that you can enjoy the power of the #XRPL on a sidechain that acts as its own #blockchain. Learn about new use cases like native #DeFi capabilities and smart contracts.”

While the company confirms cross-border payments remain its “bread and butter,” federated sidechains will open up a world of possibilities for Ripple going into the future.

How To Get Free Crypto  

What’s more, speculation is mounting that Ripple has its eye on a bigger prize. Namely, using sidechains to capture the central bank digital currency (CBDC) market.

Ripple CTO explains why sidechains are necessary

In a recent interview with YouTube channel Thinking Crypto, Ripple CTO David Schwartz explained federated sidechains as:

“The general idea is to enhance the utility of the XRP Ledger by essentially having additional ledgers that sort of, literally, sit to the side of it.”

The thinking behind this concept is to separate functionality over different chains. That way, the mainchain, which is used for payments in Ripple’s case, remains quick and cheap to use.

“If you try to put everything on a single chain, what happens is the chain gets slow and it gets expensive, and it degrades the ability of people to use it for simple payments.”

Schwartz said they could have built smart contracts etc., into the mainchain. But neither he nor the XRP community would have accepted that because being “the best digital asset for payments” really matters.

The central bank digital currency play

Ripple announced a pilot project for CBDCs in March of this year. This project is based on the XRP Ledger, which has over eight years of history as a reliable, secure, and highly scalable payment system.

Coinbase Banner  

However, in catering to central banks, it also offers transaction privacy and more control than a standard public ledger.

What’s more interesting is the interoperability aspect of this project. Ripple says these private ledgers are able to connect with existing legacy infrastructure, as well as with each other.

This presents an intriguing prospect when thinking about cross-border settlements occurring on the same network via sidechains.

“We are also working on a fresh approach where Central Banks will be able to join a network of CBDC Ledgers that enables full settlement interoperability, while allowing each member to retain their monetary and technological independence.”

While today’s announcement did not mention CBDCs, it’s hard not to put two and two together.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Samuel Wan


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.