Flare Labs CEO believes the XRP Ledger (XRPL) welcoming native smart contracts would bolster the functionality of XRP-based FAssets.
As Ripple moves forward with plans to introduce smart contracts to the XRP Ledger (XRPL), concerns have arisen about the potential impact on the Flare Network’s FAssets project.
Flare’s FAssets and Smart Contracts on the XRPL
For the uninitiated, FAssets looks to bring smart contract capabilities to assets that do not natively support them, including XRP (FXRP), Bitcoin (FBTC), Dogecoin (FDOGE), and Litecoin (FLTC).
Notably, the project operates by minting versions of these tokens on the Flare Network. It then allows network participants to use these versions for smart contracts and other decentralized finance (DeFi) applications.
Originally, the FAssets project takes advantage of the lack of native smart contracts functionality on a blockchain. However, the project has yet to launch, with its development still in progress.
Meanwhile, The Crypto Basic recently confirmed that Ripple is planning to introduce smart contracts to the XRPL, possibly in 2025. The payment firm is looking to explore a dual approach, leveraging the EVM sidechain currently in development and a possible native smart contracts functionality.
Now, with Ripple’s recent focus on adding native smart contract functionality to XRPL, some in the community believe FXRP could become obsolete before it even gets off the ground.
Flare Co-founder’s Stance
Addressing these concerns, Hugo Philion, co-founder of Flare Networks and CEO of Flare Labs, reassured the community that the introduction of smart contracts on XRPL would not diminish the value of FXRP. Instead, he argued that it would enhance the project.
Smart contracts on XRPL would make FXRP even better. This would make it even easier for XRP to come and be used with all the other assets on Flare coming from other ecosystems such as FBTC and bridged assets through Stargate. Additionally for usecases that don’t require…
— Hugo Philion ☀️ (@HugoPhilion) September 3, 2024
According to Philion, having smart contracts on XRPL would make FXRP more versatile and beneficial. He explained that this development would facilitate the integration of XRP with other assets on the Flare Network, such as FBTC and bridged assets through Flare’s Stargate protocol.
This interoperability would allow users to leverage the strengths of different ecosystems. Philion also highlighted that for use cases where interoperability through Flare is not necessary, Flare’s Oracles could be utilized directly on the XRPL.
Currently, Flare Oracles are limited in how they can interact with XRPL, but with smart contracts, they could be integrated more effectively. This would open up new possibilities for decentralized applications (dApps) on the XRPL that require real-time data and cross-chain functionality.
In response, a community member inquired whether the introduction of smart contracts on XRPL would necessitate additional testing on Flare’s test networks, including the Songbird (SGB) network, before being implemented on the main Flare network.
Philion confirmed that any upgrade to FXRP to accommodate XRPL’s smart contracts would indeed require thorough testing. However, he assured that the first version of FXRP is progressing as planned and will be launched well before any potential smart contract upgrade to the XRPL is implemented.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
