XRP Ledger Proposes New Cross-Chain Bridge• February 24, 2023 2:38 pm • Comments
Cross chain bridges are essential to increasing the value of a blockchain ecosystem because it allows it to communicate and make transactions with other blockchain networks.
In an effort to take advantage of this, the XRP Ledger has just revealed that they have proposed a new XRPL standard which would build such a cross-chain bridge.
If this new standard were to be implemented and rollout, it would essentially increase the utility and number of use cases that XRP supports.
As a result, the value of XRP would increase because it would even have value beyond just the Ripple ecosystem which will likely make it continue to have organic growth.
The new proposal by the developers of XRPL introduces many details on how transactions between sidechains and the XRP ledger will be done.
XRP Sees Ultra-Bullish Prospects As Developers Reveal A Cross-Chain Bridge To Drive Interoperability Is Coming ⋆ ZyCrypto https://t.co/46W4Mwlvzp
— CC. de’ Medici (@ccryptoFinaNCee) February 24, 2023
The proposal defines how transactions can be made on the XRP Ledger to ensure the movement of tokens between XRP Ledger and associated sidechains. Sidechains are independent chains that work adjacent to a parent blockchain, also called a mainnet.
Eight transaction types have been determined in the proposed standards to ensure the movement of tokens in a secure and efficient manner.
However, the developers pointed out the disadvantages of the previous design: “Handling fee escalation, failed transactions, and servers falling behind was much more complex,” one such disadvantage was pointed out.
XRPL’s XRP token was issued in 2013 and has a market cap of $19.8 billion, trade volume over the past 24-hours has been more than $1 billion, according to CoinDesk data.
The proposal is already visible on Github for all speculators that want to look into the details of how it works.
Of course, the XRP Ledger is not the only ledger that has been working on cross-chain bridges within the crypto industry.
However, the popularity of Ripple’s solutions which provide value to its native token XRP make the Ripple ecosystem very valuable.
As a result, making access to the ecosystem easily available even on other blockchains will significantly bolster that popularity.
This means that the number of users of the ecosystem can now increase exponentially which will accelerate the growth of XRPL by many times.
XRP Ledger #XRPL proposes Cross-Chain Bridge that will increase the Network and Token Utility of associated sidechains! ⚡
— CryptoBusy (@CryptoBusy) February 23, 2023
Putting an asset from the locking chain into the box will release a wrapped asset onto the issuing chain. Putting a wrapped asset from the issuing chain back into the box will release one of the existing locking chain assets back onto the locking chain. There is no other way to get assets into or out of the box. Note that there is no way for the box to ‘run out of’ wrapped assets — it has an infinite supply.”
Emi Yoshikawa, the vice president of strategy and operations at Ripple, says the proposal “would significantly expand potential use cases for XRPL.”
XRP is worth $0.387 at time of writing. The 6th-ranked crypto asset by market cap is down around 1.5% in the past 24 hours and more than 3% in the past seven days.
XRP is also down more than 88.5% from its all-time high of $3.40, which it hit all the way back in January 2018.
— Bitcoin News (@BTCTN) February 23, 2023
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