Ripple announced plans on September 3, 2024, to integrate Ethereum-compatible smart contracts into the XRP Ledger (XRPL), seeking to enhance the blockchain’s capabilities and attract more developers. This strategic move is expected to reshape the XRPL ecosystem by introducing new functionalities and expanding its appeal to a wider developer base. Ripple aims to compete more directly with established platforms like Ethereum, BNB Chain, Avalanche, and Solana by adding smart contract capabilities to the XRPL platform, creating new opportunities for users and entrepreneurs in areas such as decentralized finance (DeFi) applications and supply chain management solutions.
The implementation of smart contracts into the XRPL ecosystem will be a two-phase process. The initial phase involves deploying the feature on the XRPL Ethereum Virtual Machine (EVM) sidechain in collaboration with blockchain firm Peersyst. This sidechain will provide a familiar environment for developers accustomed to Ethereum-based smart contracts, allowing the use of the Solidity programming language. The second phase will introduce smart contracts to the XRPL mainnet, although this stage is still in the research phase with no definite timeline provided by Ripple. The company has indicated a long-term commitment to increasing the programmability of the XRPL platform, with plans to accelerate momentum in 2025.
In addition to the smart contract integration, Ripple is also expanding its influence through strategic partnerships and academic initiatives. One key partnership is with Futureverse, an AI and Metaverse tech company that has adopted the XRPL NFT standard and uses XRP as the gas token on the Root Network. Futureverse is integrating with the XRPL DEX to supply network liquidity, with Ripple Custody providing asset management services for KYC-verified access to DeFi through Futureverse’s Ottó blockchain. On the academic front, Ripple’s University Blockchain Research Initiative (UBRI) has added Korea’s Yonsei University as its 58th global partner. This collaboration aims to advance research in various fields, including AI, finance, and information systems, through hackathons, grants, and the launch of an XRPL validator at the university.
Overall, Ripple’s integration of smart contracts into the XRPL ecosystem marks a strategic shift for the company, positioning it to compete more aggressively with established blockchain platforms like Ethereum. The addition of smart contract capabilities is expected to create new opportunities for developers, users, and entrepreneurs, particularly in areas like decentralized finance and supply chain management. Ripple’s two-phase approach to implementing smart contracts, starting with the XRPL EVM sidechain and eventually moving to the mainnet, showcases the company’s commitment to evolving the XRPL platform’s capabilities and increasing its appeal to a broader developer base. Through strategic partnerships and academic initiatives, Ripple is also expanding its reach and influence in the blockchain space, collaborating with companies like Futureverse and academic institutions like Yonsei University to drive innovation and research in various fields related to blockchain technology.
