𝗗𝗮𝘃𝗶𝗱 𝗦𝗰𝗵𝘄𝗮𝗿𝘁𝘇 𝗨𝗻𝘃𝗲𝗶𝗹𝘀 𝗥𝗶𝗽𝗽𝗹𝗲’𝘀 𝗩𝗶𝘀𝗶𝗼𝗻 𝗳𝗼𝗿 𝗫𝗥𝗣𝗟 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝗻 𝗧𝘄𝗶𝘁𝘁𝗲𝗿/𝗫 𝗦𝗽𝗮𝗰𝗲: 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱

David Schwartz discusses Ripple’s shift on XRPL programmability, exploring hooks, smart contracts, and community-driven innovations.

Photo Source: CoinMarketCap

On Thursday, September 18, 2024, Ripple’s Chief Technology Officer, David Schwartz, hosted an in-depth Twitter Space from his personal account to discuss Ripple’s evolving stance on programmability for the XRP Ledger (XRPL).

The session, attended by over 450 participants, included developers, blockchain enthusiasts, and key figures in the XRP community.

The discussion revealed Ripple’s internal thought process on enabling smart contract capabilities for XRPL and how this step could redefine its role in the blockchain ecosystem.

Schwartz kicked off the session by acknowledging that Ripple's perspective on programmability has significantly changed.

He admitted that Ripple was previously hesitant to bring smart contract functionality to XRPL due to concerns over ledger bloat, potential performance degradation, and a desire to maintain the simplicity that defines the XRP Ledger​.

Ripple's earlier approach avoided programmability to maintain the XRPL's efficiency, prioritizing payments and low transaction fees.

However, after extensive discussions with developers and businesses looking to customize their use of the ledger, Schwartz noted that programmability is becoming increasingly necessary​.

Why Programmability on XRPL?

The most compelling reason Schwartz provided for this shift is the demand for permissionless customization.

Currently, adding new features to XRPL requires network-wide approval through an amendment process, which makes it difficult for developers to distinguish their applications from others on the ledger​.

Companies want the ability to add custom business logic to on-chain applications without the slow and complex amendment procedure.

Schwartz emphasized that this doesn’t mean turning XRPL into a general-purpose blockchain like Ethereum but enabling features that businesses can leverage without compromising XRPL’s core principles.

Exploring Different Approaches

One of the central themes of the discussion was exploring various models of programmability.

Ripple is considering the implementation of smart contracts via "hooks" - a system that would allow customization while maintaining XRPL's existing infrastructure.

Hooks could act as a lightweight solution, offering limited programmability without creating the burdensome ledger bloat that Ripple seeks to avoid.

However, it was made clear that Ripple is also evaluating other models, such as leveraging virtual machines (VMs), including WebAssembly (WASM).

Although WASM could offer more flexibility, the challenge lies in integrating it seamlessly with XRPL’s native features like the DEX and AMM​.

Additionally, Ripple is closely monitoring developments with Stellar Soroban for inspiration, as its “rent” model for data storage offers an intriguing way to mitigate ledger storage issues.

Schwartz repeatedly emphasized that Ripple is keen on finding a middle ground. Rather than jumping into full programmability, they are considering baby steps that could be scaled depending on feedback and use cases.

This incremental approach allows Ripple to gather real-world insights, address performance concerns, and ensure minimal disruption to XRPL’s existing payment system​.

Community Feedback and Concerns

The feedback Ripple has received from the community is a major driver behind this shift.

Developers have voiced frustrations over the inability to build unique features without waiting for network-wide approval, which limits innovation.

Schwartz acknowledged this issue, noting that the current system is not developer-friendly because it requires a deep understanding of XRPL’s complex codebase.

There were also significant concerns raised about ensuring that programmability does not harm XRPL’s core strengths, such as its speed and efficient resource usage​.

Schwartz addressed these concerns by pointing to controlled rollouts and fee escalation mechanisms that would allow Ripple to scale back programmability if performance issues arise.

They also assured that Ripple is focused on ensuring the programmability framework won’t introduce security vulnerabilities, such as re-entrancy attacks​.

Moreover, the introduction of smart contracts must not undermine XRPL’s primary use case: payments.

Schwartz was adamant that programmability should be complementary and not detrimental to the ledger’s payment system, DEX, or AMM​.

Ripple is working to ensure that programmability will enhance rather than compromise these features, and any implementation will keep existing strengths intact​.

The Road Ahead

Ripple is currently exploring multiple options to introduce smart contracts on XRPL. They aim to roll out an initial design by early 2025​.

According to Schwartz, the team is developing a phased, low-risk approach where only highly requested features are introduced first, with the possibility of more complex solutions coming later based on feedback and real-world performance​.

This gradual rollout is intended to allow Ripple to test programmability without risking the integrity of the entire network.

One of the more innovative suggestions discussed was the idea of fee escalation based on data longevity, a mechanism borrowed from other smart contract platforms like Stellar.

This would incentivize users to delete outdated or unnecessary data, minimizing the risk of ledger bloat while maintaining flexibility for developers​.

Ripple is also actively encouraging community participation throughout this process.

Schwartz noted that feedback will continue to play a crucial role in shaping the final design of programmability on XRPL.

The company is even considering creating a dedicated Discord channel for ongoing community discussions.

Photo Source: Internet History Podcast

David Schwartz’s Twitter Space on XRPL programmability marked a pivotal moment for Ripple and the XRP Ledger.

After years of hesitation, Ripple is now embracing the idea of smart contract functionality - but with a measured, incremental approach that prioritizes stability and minimizes risks.

With the possibility of hooks, VMs, or hybrid solutions on the horizon, Ripple is poised to transform XRPL into a more dynamic and flexible platform while preserving its core strengths.

As Ripple moves toward a 2025 design rollout, the blockchain community is eagerly watching to see how programmability will shape the future of the XRPL ecosystem.

By actively involving the community and focusing on gradual implementation, Ripple is set to introduce a smart contract framework that aligns with the vision of making XRPL a highly customizable yet efficient blockchain platform.

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