Perrsyst, a blockchain software company, has been working in collaboration with Ripple to develop an Ethereum-compatible sidechain. This sidechain project aims to enhance the capabilities of the XRP Ledger (XRPL) by integrating Ethereum Virtual Machine (EVM) functionality. In October of last year, both companies announced the release of the first phase of the EVM sidechain on the XRPL devnet. This initial phase allowed developers to access the features of the XRPL and deploy Solidity-based smart contracts on the XRPL.
The launch of the EVM sidechain marked an important milestone for both Ripple and Perrsyst. It introduced a bridge between an EVM-compatible chain and the XRPL devnet, enabling seamless interaction between the two platforms. The XRP-based EVM sidechain, specifically designed for the Tendermint protocol, was capable of processing 1,000 transactions per second (TPS). This high transaction throughput opens up new possibilities for decentralized applications (dapps) and the broader blockchain ecosystem.
Now, the EVM sidechain project enters its second phase with the release of a new version of the devnet (v2). This updated version features a decentralized bridge design using the XLS-38d specification, allowing for XRP, IOU, and ERC-20 token transfers in both directions between the XRPL ledger and the EVM sidechain. The latest version also introduces a Proof of Authority (PoA) consensus mechanism for improved scalability and performance. The block time has been reduced from 5.4 to 3.5 seconds per block, and the consensus algorithm has been switched from Tendermint to Comet Byzantine Fault Tolerant (BFT). Additionally, a PoA validator election mechanism has been implemented.
These updates bring significant improvements to the EVM sidechain, enhancing its functionality and usability. Users of the testnet will benefit from an improved sidechain block explorer, which also supports smart contract verification. It’s important to note that the original version of the EVM sidechain will only be available for the next month before being discontinued.
The second phase of the project brings the mainnet launch one step closer. However, before the implementation on the mainnet, a security audit of the EVM sidechain will be conducted in July. The results of this audit will be made available to the community for a thorough review. Any issues identified during the audit will be addressed by Perrsyst and Ripple to ensure the security and reliability of the EVM sidechain.
The final phase of the project will be the implementation of the EVM sidechain on the mainnet. To achieve this, the XLS-38d bridge change needs to be approved through the XRP Ledger’s consensus process. The XRP Ledger follows a rigorous decision-making process for introducing changes. Proposed changes are introduced as amendments, and validators vote on them. If a change receives more than 80% support for a period of two weeks, it is accepted and becomes a permanent part of all subsequent versions of the ledger.
The development of the EVM sidechain is a significant step forward for both Ripple and the Ethereum ecosystem. Once fully implemented, XRP users will gain access to Ethereum dapps like Uniswap and web3 wallets like MetaMask. Conversely, the Ethereum ecosystem will be able to utilize XRP tokens for decentralized finance applications. This cross-platform integration has the potential to foster greater interoperability and collaboration between different blockchain networks.
As the development progresses, the market is closely monitoring the XRP price. At the time of writing, the XRP price stands at $0.4805, consolidating just below the key resistance around $0.50. Market participants will be keeping a close eye on any developments related to the EVM sidechain project, as it has the potential to impact the value and utility of XRP in the long run.
In conclusion, the second phase of the EVM sidechain project marks an important milestone in the collaboration between Perrsyst and Ripple. This update brings significant improvements to the sidechain’s functionality, scalability, and performance. The project is now one step closer to its mainnet launch, with a security audit planned for July. Once implemented, the EVM sidechain will enable seamless interaction between the XRP Ledger and the Ethereum ecosystem, opening up new possibilities for both platforms and their users.
