Ripple CTO offered to launch a sidechain based on XRP

by in Blockchain News

Ripple CTO

Ripple CTO David Schwartz has posted a proposal to launch federated sidechains powered by XRP Ledger. The solution will allow you to connect smart contracts and create decentralized applications using the native network token.

According to Schwartz, smart contracts are one of the most requested features among developers and members of the XRP Ledger community. The need for the tool is due to the popularity of applications from the field of decentralized finance.

“In fact, since 2019, the number of DeFi developers has grown by 110% and is projected to grow after 2021. That said, we at Ripple have long opposed features that could derail the XRP Ledger’s focus on high-performing payments,” added Schwartz.

The CTO noted that sidechains will allow developers to experiment with smart contracts while keeping the core network simple, efficient, and secure.

Trending: Vitalik Buterin's $25.000 Doge Investment Brought Him $4.3 M

The essence of the concept is that the sidechains will function as separate blockchains, but use XRP as their main asset. In addition, they will be able to issue their tokens.

Each sidechain will receive a trust account on the XRP Ledger network to store user assets. These accounts will use multisignatures, with sidechain validators acting as signers.

The link between the registries will be provided by the federators, the software that connects the core network to one or more sidechains. They allow you to transfer assets between systems.

Trending: El Salvador prepares to legalize bitcoin

The validators managing at least one sidechain will be able to launch the federation software. To integrate the new solution, Schwartz said, “only two trivial changes” need to be made to the existing XRP Ledger network.

Among the advantages of a federated system, he noted the reduction of risks, the possibility of horizontal scalability and long-term development, as well as ease of integration of experimental applications.