Ripple Chief Technology Officer David Schwartz proposed introducing federated sidechains to enable implementation of smart contracts adjacent to the XRP Ledger.
- Ripple has resisted smart-contract capabilities because of the risk of compromising the focus on payments, Schwartz wrote in a blog post Monday.
- Demand, however, has increased with the growth of decentralized finance (DeFi).
- Federated sidechains for the XRP Ledger would enable developers to implement native smart contracts that interact with XRP and the XRP Ledger, while keeping the ledger "lean and efficient," Schwartz said.
- They would allow for more specialized projects to be built using Ripple's functionality without compromising the security or efficiency of the ledger because they would be built on sidechains acting as their own blockchains.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.