The XRP Ledger now has its own side chain with the creation of the new Xahau Network that is accompanied by the existence of Evernode to create smart contracts and decentralized applications or DApps, on top of the ledger.
While this was not possible before, currently the new innovation is not yet put to its maximum potential as many crypto enthusiasts still do not understand how the communication between the XRP Ledger and the ahau Network works.
In this article, we will be talking about the communication between side chains and main chains, and how the Xahau Network communicates with the XRP Ledger.
Data Transfer Mechanisms
In the world of inter-blockchain communications, mainly between the main blockchain and the side blockchain, there are multiple mechanisms that could be done.
When talking about crypto, usually, there are three common mechanisms that are implemented among blockchains to communicate with each other.
Bridges and Oracles
The first and most common one is through a bridge, which is its own protocol or applications that usually connects data and tokens among blockchains.
Bridges are useful for exchanging tokens between blockchains, because usually tokens have to be wrapped so it's not technically the same token because the standard of the token has to be changed in order to be compatible with the other blockchain.
Bridges can usually be put together in the same category with an oracle, that is usually used to transfer data between blockchains.
The use of oracle breaks the limitations of bridges that are usually only able to send and receive tokens. With oracles, people can now transfer everything from data about the price to data about a certain token, so it is complete.
Layer Two Communications
Another way is through a layer two communication mechanism that usually attaches one side chain to focus on a main blockchain.
But this has been innovated so that a side chain can help multiple main chains through a mechanism called modular blockchain, where one blockchain has multiple layers to process multiple different transactions.
With layer two communications, usually the data gets sent automatically from the main blockchain to the side blockchain through mechanisms like zero knowledge rollups or optimistic rollups.
Those mechanisms help data to be transferred automatically when needed by the main chain, but are usually used for helping the scalability aspect of the main blockchain.
Exchanges
The last mechanism, which is the least common one, is through the use of centralized or decentralized exchanges that are compatible with multiple blockchains.
Through exchanges, users of different blockchains can transfer tokens and coins to other blockchain as long as the address of the wallet that is used to receive them is valid.
This is the most non-efficient way of communicating between blockchains, because it takes more fees and longer time to process.
Burn2Mint Mechanism
The way that the Xahau Network and the XRP Ledger communicate is through a different mechanism called Burn2Mint.
This basically means that users have to burn an XRP on the XRP Ledger to get an RP in the Xahau Network with the same value.
There are no automatic transfers yet as common layer two blockchain does, but with this mechanism it is ensured that the amount of tokens and coins on the XRP Ledger is the same as on the Xahau Network, so that there are no double spendings.
Sadly, with this mechanism, Xahau Network cannot help the XRP Ledger that much as the transfer of data is not automatic and need the help of the users themselves to burn and mint the tokens they want to transact from one ledger to another.
Conclusion
Overall, the communication between the Xahau Network and the XRP Ledger need to be improved but there is no worries as there is still plenty of time to develop it, considering Xahau Network is still new.
The lack of efficiency on communications does not hinder the fact that the existence of Xahau Network is a huge accomplishment for the XRP Ecosystem, which cannot be overlooked, especially with the development of Evernode.
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