XRP has gone through massive fluctuations in the previous week, and Ripple intends to continue the trend. The company recently proposed to add smart contracts to XRP Ledger, allowing it to compete against BTC and ETH in the smart contract space.

If XRPL gains the functionality, it will improve XRP’s chances to Moon. The announcement came through David Schwartz, Ripple’s Chief Technology Officer. Although the feature was announced back in June, it is still affecting Ripple’s market performance.

The new feature is called Federated Sidechains and will help the crypto community operate sidechains on XRPL. The new feature focuses on helping developers integrate more functionalities like smart contracts. Additionally, XRP developers will also get the chance to undertake trials on sidechains while using XRPL’s complete potential.

Merging the ever-growing popularity of smart contracts and the DeFi sector are the primary factors resulting in the Federated Sidechain. 

David also added that Federator would bridge the gap between the XRPL and Sidechain. The concept allows every sidechain to own custom transactions and ledgers. Plus, it also lets sidechain and XRP issued tokens move across different sidechains.

XRPL will run on XRP, increasing the value and use cases of Ripple. Additionally, Ripple will also act as the native token for operating sidechains. Therefore, any platform developed on them reserves the option to release custom tokens that will work well for XRPL. The new tokens will be called Federated Assets.

The assets imported onto XRPL would exchange on XRPL’s incorporated DEX. On the other hand, XRP imported on sidechains will also create liquidity on the integrated decentralized exchanges.

The concept works similar to what DOT has accomplished with its sidechains parachains. Perhaps, it also worked as the motivation to fuel XRPL. Nonetheless, Ripple is continuing the case against the SEC while managing to gain market prominence.

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