Blockchain payment company Ripple has announced plans to integrate smart contracts into the XRP Ledger mainnet. This development aims to expand the functionality of the XRP Ledger and provide developers with greater flexibility and customization.

Ripple stated in a statement on September 2 that it started working to bring smart contracts to the XRP Ledger main network. XRP Ledger was launched in 2012 and is often used by banks and financial institutions to facilitate cross-border payments.

Smart contracts are contracts in which the terms of the agreement are written in code and are executed automatically according to this code. The smart contract functionality that Ripple will offer will be built on systems such as Hooks, which are existing standards.

It is stated that smart contracts on XRPL will increase the flexibility of the platform and allow developers to create new decentralized applications (DApps).

Developers will be able to build creative applications using XRP Ledger’s core components—such as escrows, NFTs, trust lines, payment channels, and decentralized exchange features. This will expand the possibilities offered by XRP Ledger, making the platform more diverse and effective.

When deploying smart contracts, Ripple will allow developers to use these contracts without requiring a formal approval or change process. However, an XLS standard will be implemented in order to ensure that smart contracts operate securely and efficiently. This standard aims to increase the security and efficiency of smart contracts.

Ripple CEO Brad Garlinghouse stated that the programmability of the XRP Ledger is “something the XRP community has rightfully demanded.” Additionally, Ripple plans to deploy the XRPL EVM Sidechain with blockchain infrastructure provider Peersyst early next year.

The XRPL EVM Sidechain will give XRPL developers the opportunity to use Ethereum Virtual Machine (EVM) tools and programming languages. This sidechain will enable developers to use tools and languages ​​used in the Ethereum ecosystem on the XRP Ledger.

According to previous reports, XRPL EVM will leverage Axelar’s cross-chain bridge to enable transactions between the XRPL EVM Sidechain, XRP Ledger, and more than 55 other blockchains.

Wrapped XRP (eXRP) will be used as the gas token for the sidechain in this process. This will increase the interaction between XRP Ledger and other blockchains and enable transactions to occur more efficiently.

Ripple is also working on its fiat-backed stablecoin, Ripple USD (RLUSD). RLUSD is backed by cash and cash equivalents to provide 1:1 value protection with the US dollar, which can increase the liquidity of XRPL.

This will strengthen the role of XRP Ledger in the financial system and offer its users a wider range of financial instruments. These new moves by Ripple support XRP Ledger’s aim to expand its capabilities and contribute to the blockchain ecosystem.