Ripple is making a significant leap in enhancing the XRP Ledger (XRPL) by integrating Ethereum-compatible smart contracts through a newly developed sidechain. This bold move aims to expand XRPL's functionality far beyond basic transactions, allowing it to support more complex applications like decentralized exchanges (DEXs) and token issuance. The introduction of this sidechain is set to transform the XRP ecosystem, making it more versatile and appealing to a broader developer community.

The XRP Ledger, known for its speed and efficiency in processing financial transactions, is now set to evolve into a more comprehensive blockchain platform. By integrating Ethereum-compatible smart contracts, Ripple is positioning XRPL as a formidable player in the blockchain space, capable of supporting decentralized applications (dApps) and enabling more advanced use cases. The cornerstone of this development is the XRPL EVM sidechain, which will bring Ethereum Virtual Machine (EVM) compatibility to the XRP community, allowing developers to deploy Ethereum-based smart contracts on the XRP Ledger.

The XRPL EVM sidechain will utilize the Axelar network, a crypto bridging service that allows for seamless cross-chain token transfers. With Axelar's support, users will be able to move tokens between the XRPL EVM sidechain and 55 other blockchains, significantly enhancing interoperability. Wrapped XRP (eXRP), a representation of XRP on other networks, will serve as the native asset and gas token on this sidechain, facilitating transactions and powering smart contracts.

Source: https://coinpaper.com/5294/xrp-ledger-to-support-ethereum-smart-contracts-with-new-sidechain

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