Insights from David Schwartz, the CTO of Ripple, about the significance of the imminent cross-chain bridge for the XRP Ledger (XRPL) recently surfaced in the crypto community.
Schwartz had explained the importance of the upcoming XRPL cross-chain bridge during a developer summit. XRP community figure XRP DROPZ called the public’s attention to the disclosure in a recent post on X.
⛓️🌉 XRPL ➡️ "THERE IS NO LIMIT TO SIDE CHAINS" ➡️ DAVID SCHWARTZ ON THE XLS-38 // THE CROSS-CHAIN BRIDGE" @JoelKatz @RippleXDev #XRPL #XRP
➡️ "There is no limit to side chains ! They are implemented independently from the XRPL but to work properly, especially if they chose to… https://t.co/WuKobRcjvl pic.twitter.com/9xVdGCAyGh
— XRP DROPZ (@DROPZXRP) April 22, 2024
Why Cross-Chain Bridge is Vital for XRPL
First, the Ripple CTO highlighted that the XRPL mainnet excels in payments. He noted that while it is the primary platform for XRP, it has the potential for broader utility.
Meanwhile, Schwartz argued that the notion that a layer-1 solution could cater to all possible needs is unrealistic. He emphasized that regardless of the scalability improvements on the main network, limitations would persist, especially for users requiring specialized computing resources.
Moreover, Schwartz pointed out another limiting factor in storage capacity and trade-offs around deploying applications on the main network. For instance, he cited that when something is added to the XRPL, each mainnet node must store and transmit those transactions. He emphasized that this ultimately overwhelms available resources.
“Whatever capacity [a main network] has, that’s all it has. Whatever capabilities it has, there will have to be capabilities it doesn’t have. No layer-1 will ever be everything to everyone,” Schwartz stressed.
The Ripple CTO highlighted “asset portability” as the solution. This feature lets developers integrate additional functionalities into their existing ledgers without creating a new token.
Upcoming Cross-Chain Bridge
Currently, Ripple engineers and Peersyst Technology are advancing the “asset portability” feature via the XLS 38D amendment. Specifically, this amendment looks to introduce the XChainBridge, facilitating interoperability across various networks.
The proposed standard enables tokens from one blockchain to be locked in an account on XRPL while an equivalent amount of tokens is issued on another blockchain.
Essentially, the functionality will ensure that XRP is not limited to the XRP Ledger. Likewise, other issued assets will not be restricted to their respective ledgers. It potentially increases the use cases and adoption of XRPL.
The XLS-38D amendment went live for voting in January. At press time, only 11 XRPL validators have endorsed the cross-chain bridge proposal, bringing the consensus to 31.4%. The amendment needs 80% validator consensus to go live.
Cross-Chain Bridge Also Good for Initial Tests
Meanwhile, during the presentation, Ripple CTO pointed out another valuable aspect of cross-chain bridges: the ability to test potential features for the main network.
Schwartz illustrated this with Hooks. He highlighted that while Hooks holds promise, there are trade-offs that might make immediate adoption on the main network risky. Earlier, Schwartz argued that hooks could pose a multibillion-dollar risk for XRPL users.
Thus, side chains facilitated by cross-chain bridges offer a pathway to demonstrate the efficacy of such new technologies in real-world scenarios before mainnet adoption.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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