Ripple is proposing a major XRP ledger upgrade that the company says could unleash decentralized finance (DeFi) and smart contracts across the broader XRP ecosystem without decreasing XRPL’s efficiency.
Ripple plans to accomplish this through the use of federated sidechains, according David Schwartz, the company’s chief technology officer.
The sidechains would be connected to the XRPL by “federators,” which are pieces of software run by parties who operate validators on at least one sidechain, explains Schwartz in a new blog post. The sidechains would operate like their own blockchains, but XRP and issued tokens could move between them and the XRPL.
“This will enable developers to implement new features, such as native smart contracts that interoperate seamlessly with XRP and the XRP Ledger, while also allowing the XRP Ledger to maintain its existing, ‘lean and efficient’ feature set.
Federated Sidechains allow for experimentation and specialization, so developers can enjoy the power of the XRPL on