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XRP Ledger’s XLS-80 Could Beat Ethereum in Institutional Adoption
In the blockchain space, the battle for institutional adoption is intensifying. This latest development could tip the scales in favor of Ripple (XRP) and its XRP Ledger (XRPL). The buzz surrounds XRPL’s upcoming June upgrade that introduces XLS-80, a native compliance feature set to revolutionize permissioned domains and on-chain compliance.
The significance lies not just in what it can do but how it does so. Unlike Ethereum, which relies on off-chain KYC integrations, XLS-80 brings everything under one umbrella – the blockchain itself. This means that financial institutions will no longer need third-party KYC services or gated smart contracts to participate in DeFi (Decentralized Finance). The potential implications are massive.
The Ripple community’s WrathofKahneman aptly summarizes the situation:
“Permissioned DeFi apps like Aave Arc require separate contracts or private pools gated by external KYC lists. XLS-80 being native could reduce friction for organizations to operate there.”
David Schwartz, Ripple’s CTO, further elaborates on how permissioned AMMs will function under this upgrade:
“Only users from approved domains can provide liquidity in these pools. If someone is removed from a domain, they must sell their liquidity provider tokens (LP tokens) on the open market. These tokens won’t represent ownership of XRPL liquidity – only claims within that specific permissioned domain.”
It appears XLS-80 holds immense potential to streamline the regulatory environment for institutional players. Ripple’s CTO has also shed light on how these domains will function in the XRPL ecosystem, allowing users from approved domains to provide liquidity and ensuring seamless auditing.
With this upgrade around the corner, there is no denying that XRP Ledger might be poised to outshine Ethereum in the race for institutional adoption. Will this decisive move propel Ripple ahead of its Ethereum competitor? Only time will tell.
Source: coinpedia.org
