Ripple's core development team Ripplex, in collaboration with Peersyst Technology, has announced the first phase of the XRPL EVM sidechain, marking a major step toward Ethereum Virtual Machine (EVM) compatibility for the XRP ecosystem. The sidechain is now live on Devnet, allowing developers to assess available technologies and deploy existing Solidity applications on the EVM sidechain.
Three-Phase Roadmap for XRPL EVM Sidechain
According to a blog post by Mayukha Vadari, a developer at Ripplex, the XRPL EVM sidechain will be rolled out in three phases. The first phase, launched on October 17, 2022, introduces a bridge that enables developers to test the exchange of Devnet XRP between the EVM sidechain and the XRP Ledger. This phase serves two main purposes: (1) allowing developers to evaluate available technologies, and (2) enabling them to deploy their existing Solidity applications on the EVM sidechain while accessing the XRPL Devnet user base.
The second phase is scheduled to begin in early 2023 and will feature a permissionless EVM sidechain and bridge. The ultimate goal, phase three, will deliver a permissionless EVM sidechain and bridge on the XRPL Mainnet. Vadari emphasized that throughout all three phases, the EVM sidechain will maintain block and finality times comparable to the XRPL Mainnet and will support Ethereum smart contracts along with widely used tools such as MetaMask, Remix, and Truffle.
Technical Significance and Background
XRP is the sixth-largest cryptocurrency by market capitalization, and its developers have long pursued smart contract capabilities. Some accounts trace the idea back to XRP developer David Schwartz as early as 1988. The XRPL EVM sidechain, developed by Peersyst Technology, represents a critical step toward bridging the XRP and Ethereum ecosystems.
Compatibility with the Ethereum Virtual Machine has become a common goal for many alternative blockchain networks in recent years. By enabling developers to migrate existing Solidity smart contracts to the XRP network, Ripple aims to expand the utility of the XRP Ledger and attract a broader developer community.
Market Reaction
Following the announcement, the native cryptocurrency XRP experienced a 0.6% decline in the last 24 hours and a 10.6% drop over the past seven days. However, on a two-week basis, XRP recorded a 6% gain, and its monthly performance showed a 33.7% increase. Year-to-date, XRP still lost 58.1% of its value against the U.S. dollar. These mixed signals suggest short-term market digestion of the news, while the long-term value of the sidechain remains dependent on subsequent phases and mainnet adoption.
It is important to note that the current phase is limited to the Testnet environment; mainnet deployment will follow after further development and testing. Investors should monitor technological progress and regulatory developments closely.