Amid a lawsuit with the SEC, Ripple announced the first phase of smart contracts on Ethereum’s Virtual Machine (EVM). The announcement makes the crypto world wonder will EVM compatibility improve XRP’s scalability.

Old School Census Protocol

Ripple is looking to leave behind their consensus protocol to improve scalability. Their use of a consensus protocol lets any user download Ripple’s validation software. They can then authenticate a transaction on a “who will defraud them” basis while it maintains a distinctive node.

This antiquated approach left them behind other currencies that require users to decipher complex equations. A ledger holder majority is needed for verification to take place. Ledgers are updated in 3-5 second intervals unless a ledger mismatch requires verification before the process begins again. Despite the old-school protocol, XRP has had immense growth.

EMV Compatability Benefits

Phase 1 of the test release is an “access only” invitation to the XRP devnet, an experimental network set up for testing purposes. It allows Devnet users to test the new technology and give feedback on their experience. All feedback will be used to improve its use in phases 2 and 3.

It will alleviate developers having to choose between EMV or XRPL blockchain compatibility as they can now use both. It will also lower transaction fees and increase throughput.

Developers can now establish their Solidity apps on the Ethereum Virtual Machine to access the Devnet userbase for XRPL. The RippleX developer’s primary goal is to make it easier to create ETH smart contracts on the XRPL ledger. The use of Ethereum lets XRP target a much larger crypto following.

Ripple chose Peersyst as a partner to develop the blockchain for its new sidechain. The two were working on a project in Columbia that would have paired documents for land deeds and the actual deed into a public certificate. Unfortunately, a change in the Columbian government put that project on hold.

Peersyst is a Barcelona-based company that develops blockchain technologies and layered blockchain securities. They have a client list that includes AWS, Rust, and Solidity.

XRP

Who Benefits From this Merger?

XRPL ledger users will see the most significant benefits. Once it is on the mainnet, they will enjoy an increase in scalability, lower transaction fees, and throughput improvement (how quickly transactions are processed on the blockchain.) It will also allow XRPL developers to create a newer generation of apps facilitated by blockchain.

Ethereum and XRP will see flawless crypto transactions via MetaMask and XUMM Wallet. Creating the potential to increase the number of users on Ethereum and Ripple.

Ripple will definitely benefit from the use of the Ethereum smart contract. It is suspected that the future will bring an entirely new Ripple ecosystem. In truth, the crypto world will benefit from the technical innovation once all 3 phases are up and running.

Phases 2 and 3 increase XRPL Scalability

Maintaining XRPL’s efficiency, scalability, and security, RippleX developers made the decision to use EVM sidechain as a layer-2 technology.

Phase 2 is set to launch in the 2023 1^st quarter, with phase 3 launching in the 2nd quarter. But will EVM compatibility improve XRP’s scalability? Ripple believes it will offer high-quality scalability once its sidechain is compatible with Ethereum Virtual Machine.

Phase 2 will be permissionless, giving full access to the public via the EVM sidechain, with the bridge enhancing wide-scale testing.

In its last phase, phase 3 will complete the EVM sidechain launch. The final solution will support Ethereum’s smart contracts and enhance transaction speeds comparable to XRP mainnet. Truffle, Metamask, and Remix applications will then be supported.

XRP

The Ripple Effect

The crypto world is watching to see how the addition of the EVM sidechain and bridge will shape the future of XRP and Ripple. Despite Ripple’s hopes that EVM compatibility improves XRP’s scalability, the price of XRP fell by almost 2.25% in the second week of October.

Some might say this Ripple effect directly results from the SEC lawsuit and the uncertainty it brings. Whether the SEC verdict finds in favor of Ripple or not, XRP’S scalability will not be called into question!