XRP Ledger (XRPL) is known for its speed and efficiency in transactions in continuously developing blockchain technology. One of the newest breakthroughs is sidechain.
Sidechain is separate blockchains that are connected to the main blockchain, such as XRPL. Sidechain offer several advantages over main blockchains, such as:
- Scalability: Sidechain can process transactions faster and cheaper than the main blockchain.
- Security: Sidechain can be configured with different levels of security, which makes it ideal for a variety of applications.
- Flexibility: Sidechain can be customized to meet specific application needs.
Latest Features
According to CyptoNews, the main developer of the XRP Ledger (XRPL), the Xahau network has released Xahaud 2024.3.12-release+790, shipped XLS-55d, Remit: Atomic Multi Asset Payments for XRPL Protocol Chains.
Remit is The latest update to Ledger's XRP sidechain, Xahau(d) build 790 which introduces an innovative payment method.
Xahau launched a new feature that allows the creation of sidechain for the XRP Ledger. This opens up new possibilities for XRP, such as:
- Your token: Sidechain can be used to create new tokens that represent real-world assets, such as stocks, real estate, and commodities.
- DeFi: Sidechains can be used to build decentralized finance (DeFi) applications, such as decentralized exchanges (DEX) and lending platforms.
- Identity Management: Sidechain can be used to build secure and decentralized identity management solutions.
The launch of the Xahau sidechain feature is an important step for the XRP Ledger and the XRP ecosystem.
Sidechain has the potential to improve the scalability, security, and flexibility of the XRP Ledger, and open up new possibilities for XRP.
Also read: What are XRP Ledger (XRPL) Sidechains & Cross-Chain Bridges
The examples of existing XRP Ledger Sidechain
- Flare Network: A sidechain that allows developers to build DeFi applications and tokenize on the XRP Ledger.
- Sologenic: A sidechain that allows users to issue and trade digital asset tokens on the XRP Ledger.
- XRP Ledger EVM Sidechain: The Ethereum Virtual Machine (EVM) compatible sidechain, allows developers to build Ethereum compatible dApps on the XRP Ledger.
How Do XRP Ledger (XRPL) Sidechain Work?
XRP Ledger (XRPL) sidechain operates separately from the main XRPL blockchain, but remains connected to it. Let's break down how it works:
Independent Blockchain
- Think of sidechain as mini blockchains with their own rules and consensus mechanisms. This means that the sidechain has its own validator whose job is to verify transactions on the sidechain.
Asset Transfer
- To move assets (such as XRP) between XRPL and sidechain, a special bridge is required. This bridge locks the asset on XRPL and creates its digital representation on the sidechain. When an asset wants to be returned to XRPL, the digital representation is burned (deleted) on the sidechain and the original asset is issued back to XRPL.
Flexible and Customized
- The main advantage of sidechain is their flexibility. Sidechain developers can determine the rules and consensus mechanisms that best suit their needs. For example, a DeFi-focused sidechain might use an energy-efficient Proof-of-Stake (PoS) mechanism, while a sidechain that prioritizes high security might use Byzantine Fault Tolerance (BFT).
Security
- Sidechain security depends on its design and implementation. Generally sidechain security is not as good as XRPL security itself. However, bridges connecting sidechains and XRPL are usually designed with a high level of security.
Also read: How Fast is Xahau Network? Comparison to XRP Ledger
Conclusion
Sidechain is a new technology that has the potential to transform the XRP Ledger. Sidechains can improve the scalability, security and flexibility of the XRP Ledger, and open up new possibilities for XRP.
The launch of the Xahau sidechain feature is an important step for the XRP Ledger and the XRP ecosystem.
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