Bullish News for XRP Investors as Smart Contracts Are Coming to the XRP Ledger

The past few months have seen a great deal of attention drawn to blockchains and their functionalities. Besides the growth of the cryptocurrency space, alternative uses for blockchain have also been very prominent recently.

Bullish News for XRP Investors as Smart Contracts Are Coming to the XRP Ledger

Of course, the alternative uses of blockchain can be crypto-related as well. Developers in the decentralized finance (DeFi) space can build decentralized applications (dApps) on blockchains with a view of solving specific problems and contributing to making the world a better place.

However, the function that makes blockchains more useful for developers is smart contracts. These contracts make blockchains really useful in the long run, but they aren’t available on every chain. Ethereum is considered the most popular blockchain globally because it supports smart contracts. Several other blockchains have become prominent over the past few years because smart contract functionalities allow developers to build on them.

Flare is Bringing Smart Contracts to the XRP Ledger

Ripple Labs struck gold early on when the company built and scaled XRP - a cryptocurrency focusing on payments and cross-border remittances. In a few years, XRP has become one of the most valuable cryptocurrencies globally and essentially solidifies Ripple Labs as a leader in the blockchain space.

But, the XRP Ledger - XRP’s blockchain platform - has been hampered by the lack of smart contract functionality. This means that the blockchain has been significantly limited and unable to reach its full potential.

Until now. A new integration between the Flare Network and the XRP Ledger is expected to bring smart contract functionality to the latter, bringing it to the same level as top-performing blockchains like Ethereum and Solana.

Earlier this year, the official Flare Network Twitter account confirmed that integration between the platform and the XRP Ledger is coming, bringing smart contract functionality and allowing even more people to adopt the blockchain. Amongst other things, this should help boost XRP’s price even higher.

The integration makes sense. Flare’s platform makes it easier to integrate scalable and effective smart contracts, and it had gotten backing and funding from Ripple Labs’ XSpring arm in November 2019. Riding on Ripple’s name and backing, Flare has been able to run through multiple development rounds and is now looking to bring its solutions to the market.

The first step towards this integration will be the deployment of Songbird - a canary to the Flare network. As Flare explained, the integration is expected to happen this month. An additional blog post from Flare’s chief executive Hugo Phillon explained that Songbirds integration will help with security testing and further experimentation. It is one of the last few steps before Flare finally launches its mainnet.

In his post, Phillon described Songbird as an adversarial ecosystem that will enable long-term live testing and bug discovery for Flare. The platform will be important in testing Flare’s architecture, along with other core systems. So, applications that are intended to launch on Flare will first need to launch and test on Songbird to find possible bugs.

A Good Time for XRP Investors

The excitement from many insiders for this integration is already palpable. Over the weekend, Jimmy Vallee, the Managing Director at venture capital firm Valhil Capital, said:

"This {Flare airdrop event} represents a significant step forward for the blockchain industry, as now smart contract capability, as well as other use cases, are now available on the XRP Ledger. This digital world will greatly benefit from being able to move value in seconds at a fraction of the costs associated with current smart contract technology that uses proof of work - like Ethereum."

There is no doubt that this will indeed help XRP. The coin has shown significant progress in 2021, breaking the $1 barrier for the first time since 2018 and going very close towards the $2 mark. If smart contract functionalities come to the XRP Ledger, more people will be able to build on it. This will only help boost the blockchain’s functionality - and, by extension, XRP’s price. It is bullish news indeed.

It is also worth noting that Ripple Labs is currently riding a wave of confidence following a legal case. The company had been sued by the Securities and Exchange Commission (SEC) over securities violations last December, and they have been in a legal dispute since. Ripple is confident of a win.

A reporter tweeted last week that Ripple currently has no plans of settling with the SEC. The company is confident of coming out of this with a win. The fact that XRP has been able to rise even with Ripple Labs in a legal dispute has been impressive on its own. Now that the case seems to be dying down and the XRP Ledger is about to support smart contracts, it looks like a great time for investors.

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