RippleX, the development arm of Ripple Labs, has introduced a significant update to the XRPL EVM sidechain, enabling Ethereum Virtual Machine (EVM) compatibility with the XRP Ledger (XRPL). This development is expected to improve interoperability and create new opportunities for decentralized finance (DeFi) and real-world asset (RWA) tokenization on XRPL.
The integration of EVM capabilities into the XRPL was initially introduced on the XRPL devnet in October 2022. In a detailed blog post by Team Ripple, the new sidechain is described as a crucial innovation for the blockchain industry.
The XRPL EVM Sidechain, now officially named, operates with a bridge facilitated by Axelar, using wrapped XRP (eXRP) as the native asset and gas token. This bridge plays a vital role in enabling seamless asset transfers between XRPL and the EVM sidechain, ensuring strong interoperability and efficient transaction processing.
Axelar’s integration offers a decentralized bridge operated by a network of validators, enhancing security and enabling broader cross-chain interactions. With 75 validators in its network, Axelar ensures strict security protocols to maintain reliability and trustworthiness.
The new sidechain also aims to simplify the user experience by consolidating all transfers between XRPL and the EVM sidechain through Axelar’s technology. This streamlines the process and makes it more user-friendly.
RippleX emphasizes the ongoing significance of the XLS-38 proposal in enabling XRPL developers to create custom sidechains. Ripple plans to continue evaluating community input and adoption metrics over the next 12-15 months to enhance the EVM sidechain’s functionalities.
At the time of writing, XRP was trading at $0.483.