Ripple says it is improving its popular XRP (CRYPTO: $XRP) ledger with the addition of %Ethereum (CRYPTO: $ETH) smart contracts.
The Ethereum smart contracts are expected to broaden the functionality of the XRP ledger, enabling more complex transactions such as decentralized exchanges and token issuance.
The XRP Ledger is an open source %Blockchain network that uses popular XRP tokens to process and record financial transactions.
The ledger is administered by Ripple Labs, a U.S.-based technology company that operates the Ripple payment protocol and exchange network.
Ripple said that it first started testing a way for developers to deploy smart contracts made for Ethereum on the XRP Ledger blockchain back in 2022.
Once completed, the enhanced XRP ledger will lead to broader interoperability and greater engagement among developers, according to Ripple.
Smart contracts are in-demand among developers as they automate actions required in a blockchain transaction such as issuing tokens, processing trades, and creating decentralized financial applications.
In a news release, Ripple stated that the changes underway will allow “…developers to employ familiar tools and programming languages, thereby broadening the XRP Ledger’s appeal to a global developer community.”
The XRP cryptocurrency has declined 10% so far in 2024 and currently trades at $0.57 U.S. per digital token.
