XRP Ledger Powerfully Unlocks Bold New Use Cases
- The XRP Ledger is venturing into uncharted territory, covering a wide range from tokenization to ETFs.
- Ripple executives are pondering if staking and larger DeFi are in the future of XRPL.
- Speed, cost-effectiveness, and trust continue to be the main factors for any upcoming changes to the system.
The primary reason for the creation of the XRP Ledger was to transfer value in a fast, clean, and non-friction manner. Its performance in this regard was excellent. Nevertheless, the first signs of change have now been detected under the digital asset.
Ripple’s CEO, Brad Garlinghouse is already pointing at the new situation and claiming the ledger’s applications are becoming more diverse. The perspective is that what used to be a mere payments engine is now becoming a comprehensive machine. It is capable of dealing with tokenized assets. It is the backbone of real-time markets. It is already in the vicinity of exchange-traded funds (ETFs).
Garlinghouse went straight to the public with this question, he raised the matter up of other options that should be examined as DeFi is developing. The answer was immediate and resounding. The crowd wanted more from the network; they were eager for an adventure around its limits and wished to do it without giving up the quickness and reliability that had earned it a stellar reputation.
Staking and the XRP Ledger
Staking is one concept. The topic was opened up by J. Ayo Akinyele of RippleX. The XRP Ledger has never been designed for staking. It opted for consensus instead of proof-of-stake. Validators receive no rewards for their work. They do not follow the yield. They do consensus. This is their role.
Introducing staking into the system would mean a complete redesign of the current structure. It will definitely require a reward pool. Apart from that, a just and fair method for the reward distribution has to be in place.
Furthermore, the whole process should not disrupt the network balance at all. The fees should continue to be low. The speed of confirmations should not be compromised either. The power of no single validator should increase significantly. This is the challenging path that every staking proposal has to follow.
But the idea is still under consideration. Spot ETFs such as Canary are already operational. There are more to come. The interest from institutions is increasing. It is possible that the demand for the native yield will grow along with the maturation of the ecosystem.
Also Read: XRP Ledger (XRPL) Unveils Layer 1 Smart Contracts on AlphaNet, Expanding DeFi Potential
The Future Vision for the XRP Ledger
David Schwartz, Ripple’s Chief Technology Officer, is looking into the future. He perceives the need for Decentralized Finance solutions. He listens to the demand for staking. However, he suggests not to disrupt the ledger’s core. Its swiftness. Its affordability. Its trust model.
Schwartz has suggested a dual-layer agreement framework. The first layer would allow the ledger to be updated quickly. The second layer would take care of governance and changes. This setup might provide the network a chance to expand while still retaining its characteristic traits.
The XRP Ledger isn’t idle anymore. It is growing. It is maturing. And the upcoming part will be determined by those who can be creative and still know the basics that gave it strength.
Also Read: XRP Ledger Sees 21,595 New Wallets in 48 Hours as User Activity Hits 8-Month High
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