Ripple and Ethereum soon to be interoperable? EVM comes to XRP
Will Ripple and Ethereum soon be interoperable? The developers behind the cryptocurrency XRP are planning exactly that and want to increase the importance of their project in the DeFi sector. A new sidechain is intended to establish compatibility between XRP and EVM as the programming layer of ETH.
What does the XRPL sidechain bring?
Blockchain developers from the company Peersyst recently shared a video on Twitter in which they present a new project they call the XRPL sidechain. XRPL stands for XRP Ledger , i.e. the blockchain of the cryptocurrency.
The sidechain provides the ecosystem of the sixth largest cryptocurrency with an interface that is compatible with the Ethereum Virtual Machine. In the future, XRP can also be used in decentralized finance.
Where exactly XRP is used depends solely on the individual decision of the dApp developer. Since smart contracts can also be used for XRP, its users can, for example, provide the cryptocurrency as a loan and thus passively earn interest .
Improved access to other cryptocurrencies and Ethereum tokens is also conceivable. So you could soon find XRP on DEXs like Uniswap.
Ripple seeks role in DeFi
Peersyst’s project receives direct support from Ripple and was created through a collaboration. In addition, a blockchain bridge was developed through which XRP users can reach DeFi.
Obviously, Ripple is aiming for a role in the growing DeFi space. The option of decentralized financial services is generally considered the second-biggest invention in the crypto sector after Bitcoin . The idea goes back to Ethereum. The blockchain is still the industry leader in the decentralized financial world.
XRP sidechain starts test phase
XRP can now be used via the well-known web wallet MetaMask . As usual, this forms the portal to all dApps. The XRP sidechain is currently available on the Devnet and is ready for testing. The throughput amounts to 1,000 transactions per second.
Due to the test phase, the sidechain could be improved, according to RippleX developer Mayukha Vadari. In a second phase, the sidechain should function without trust and become even more scalable.
Phase three then provides for the publication of the project. The XRPL Bridge then connects to the XRP mainnet . A reaction to the message cannot yet be seen in the price of the coin . The XRPL sidechain should be ready by spring 2023.