In the midst of its ongoing legal battle with the US Securities and Exchange Commission (SEC), Ripple has made amendments to its XRP Ledger. Ripple’s Chief Technology Officer, David Schwartz, recently provided insights into the latest rippled version and what users can expect.
One notable update is the inclusion of Decentralized Identity (DID) solutions on the XRP Ledger. This feature will give users more control over their digital identities, as centralized institutions will no longer have control over them. The use of public blockchains like the XRP Ledger enables privacy and self-ownership, making these DID solutions possible.
The introduction of DID solutions on the XRPL has the potential to increase the use case of Ripple’s ecosystem. South Korea, for example, has announced plans to implement a blockchain-powered digital identity system for its citizens. This move could inspire other countries to follow suit and adopt the XRP Ledger as the blockchain for creating digital IDs.
Another significant update in the latest rippled version is the introduction of an Automated Market Maker (AMM) mechanism on the blockchain. David Schwartz has tagged this as one of his “favorite XRPL features ever.” The voting for this update began in September, and if passed by validators, it will be implemented on the XRPL mainnet. The AMM design, known as XLS-30, is the first of its kind and built as a native protocol. It allows traders on the network to trade against automated liquidity pools, offering a seamless trading experience without relying on traditional order books.
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The AMM design also introduces a novel Continuous Auction Mechanism, which is expected to reduce the effects of impermanent loss suffered by liquidity providers (LPs). Arbitrageurs can bid for mispriced opportunities, providing more rewards for LPs. This update positions Ripple as a major player in the Decentralized Finance (DeFi) space, and DeFi projects seeking more liquidity may consider migrating or building in the Ripple ecosystem.
Furthermore, David Schwartz emphasized that the XRP Ledger is on track to disrupt the global financial system. He mentioned a demo in which users could transact with different currencies on the Ledger, showcasing the blockchain’s potential in facilitating cross-border transactions.
In summary, the latest rippled version of the XRP Ledger brings several significant updates. The inclusion of Decentralized Identity solutions gives users more control over their digital identities, potentially inspiring other countries to adopt the XRP Ledger for digital ID systems. The introduction of an Automated Market Maker mechanism enhances the trading experience on the network and positions Ripple as a major player in the DeFi space. Overall, these updates solidify Ripple’s commitment to innovation and its role in revolutionizing the financial industry.
