After the release of the mainnet v3.1.3, the XRP Ledger (XRPL) upgrade pipeline keeps growing. A number of big proposals are in progress currently that may greatly expand the capabilities of XRPL.
For context, version 3.1.3 of Ripple’s XRPL has been released. It features the fixCleanup3_1_3 amendment. Moreover, the upgrade aims at improving network reliability, NFT offers cleanup, lending corrections, and vault enhancements.
XRP Ledger Proposals On Smart Escrows & Privacy Transactions
Some of the most closely watched initiatives are the XLS-100 Smart Escrows and XLS-96 Confidential Transfers. The efforts are ongoing as developers move to the future voting and activation stages on XRP Ledger.
One of the boldest ideas is the XLS-100 Smart Escrows, which would add the ability to set conditions for escrow release. The specification would allow developers to develop “custom, programmable release conditions” on XRP Ledger.
For this, it will use a WebAssembly (WASM) execution layer. The proposal calls the feature “a minimal, programmable code block attached to an Escrow object,” which decides if funds are released.
The proposed model on XRP Ledger may be suitable for a variety of applications. It could help in milestone-based payments, token vesting, NFT-related settlements, treasury management, token swaps, and compliance related holding periods.
For context, the traditional smart contract aims to maximize flexibility and allow any code to run on the blockchain. On the other hand, the design is designed to minimize the blockchain’s execution and remain fully verifiable on-chain while maintaining the efficient architecture of XRPL.
Furthermore, functionality that focuses on privacy is also moving forward with XLS-96 Confidential Transfers for Multi-Purpose Tokens. This XRP Ledger amendment proposal aims to introduce confidential balances and transfers and retain supply auditing and issuer controls. The specification says that “individual balances and transfer amounts are encrypted and are not revealed to validators or external observers.”
The feature is meant to support institutional and enterprise tokenization use cases where privacy of transactions is needed, according to the developers of the proposal. The document also points out the system would maintain “public auditability” by means of cryptographic proofs. It would enable auditing of the total supply value without revealing the details of the transactions.
Other Crucial Upgrades In Sight
XLS-82 MPT DEX Integration is another significant proposal on XRP Ledger. It suggests extending XRPL’s decentralized exchange to accommodate Multi-Purpose Tokens as a native asset class. With the proposal, MPTs can communicate through the current DEX functions such as offers, payments, automated market makers (AMMs), and checks.
The specification provides details that the upgrade is primarily about extending existing trading infrastructure and not adding new ledger objects. This will also allow MPTs to be paired with XRP, issued assets or other MPTs using the decentralized liquidity network of XRPL.
Thereby, it eyes opening up new trading and tokenization opportunities on the blockchain. Furthermore, along similar lines, the XRP Ledger RWA market cap surged beyond $2.2 billion.
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