“Vintage” Public Chains Embrace DeFi, Ripple to Support Smart Contracts via Sidechain

Is it too late to tell a new story?

The explosion of DeFi has changed the landscape of public chain competition.

After the early stage of valuation by imagination alone, the state of ecological development has now become the primary indicator to judge the value of public chain networks. With the growing popularity of DeFi applications, ethereum and other smart contract public chains have ushered in a huge amount of users and funds, which in turn have become the value support of the public chain itself.

As an industry observer, we can see this trend, and naturally those “antique” public chains that do not yet support smart contracts can also see it.

"Vintage" Public Chains Embrace DeFi, Ripple to Support Smart Contracts via Sidechain

Ripple’s official website has published a handwritten article by CTO David Schwartz, “A Vision for Federated Sidechains on the XRP Ledger,” which looks at the vision for adding “Federated Sidechains” to the Ripple ledger (hereafter referred to as the XRPL mainnet to prevent confusion). The article, “A Vision for Federated Sidechains on the XRP Ledger,” looks at the vision of adding “Federated Sidechains” to the Ripple ledger (collectively referred to as the XRPL mainnet to prevent confusion).

According to the article, the Ripple community has long contributed ideas on how to improve the XRPL mainnet, with developers and other contributors looking for smart contracts as one of the most anticipated features, a request that has become even stronger after the exponential explosion of DeFi, but at the same time Ripple does not want to distract from the mainnet’s focus on payments. With this in mind, Ripple has proposed the aforementioned federated sidechain functionality, which will allow developers to implement new features on the sidechain (such as smart contracts that interoperate seamlessly with the XRPL mainnet) without compromising the current “lean and efficient” nature of the mainnet.

"Vintage" Public Chains Embrace DeFi, Ripple to Support Smart Contracts via Sidechain

The sidechain will be connected to the main network through a software called federator, which will coordinate assets and transactions between the main network and the sidechain.

Sidechains can choose to use XRP as their network base asset or launch their own native tokens.

Each sidechain has a “trust account” on the XRPL mainnet, which represents the XRPL mainnet assets held by the sidechain, and the account is a multi-signing or threshold signature mechanism, where the signer is the sidechain’s The signer is the verifier of the sidechain, i.e., the verifiers of the sidechain can jointly manage the mainnet trust account of the sidechain by signing transactions together. If a sidechain chooses to use XRP as its native asset, it must hold an equal amount of XRP in its mainnet trust account as that sidechain; if the sidechain chooses to create a native token, that token can be issued on the XRPL mainnet by the verifiers together through the trust account.

Later in the article, Schwartz states that sidechains are free to choose their own validators and change the rules of the chain system as needed, so sidechains will have the greatest degree of freedom to decide whether they need permission to enter or leave the network, whether the network governance needs to be decentralized, or even whether the network needs to continue to operate.

To enable federal sidechain functionality upgrades, Ripple plans to fork the existing XRPL mainnet server software to allow it to operate in sidechains (the XRPL mainnet version will not be fork-enabled).

That’s about it for Ripple’s shared upgrade plans, followed by a brief discussion of the Odaily Planet author’s personal views.

First of all, Ripple’s proactive approach to change is a positive thing, but it’s probably a last resort given the state of the project itself.

As a scenario-based public chain from a previous era, Ripple’s vision of “payments” is looking more and more nebulous today. “Ripple is not Bitcoin, it’s not backed by a solid and universal consensus, and it desperately needs some new stories at a time when public chain valuation models are changing.

However, at this point in time, the smart contracts are really getting cold, to be honest.

Leaving aside the technical criticism of the sidechain solution due to security, Ripple’s upgrade plan is still in the concept stage and has not yet been implemented, so will Ripple succeed when the Ether Layer2 has landed and the new generation of public chains such as BSC, Solana and Fantom have exploded in turn? It is still a big question mark whether Ripple can successfully embrace DeFi.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/vintage-public-chains-embrace-defi-ripple-to-support-smart-contracts-via-sidechain/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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