Ripple's Chief Technology Officer, David Schwartz, has clarified that the XRP Ledger (XRPL) currently does not support smart contracts. This statement came in response to a user inquiry on social media platform X, where Schwartz emphasized that the XRPL remains a "fixed-function ledger" as of now.
Key Takeaways
- No Smart Contracts Yet: XRP Ledger operates without smart contract capabilities, per Ripple CTO David Schwartz.
- 2025 Rollout Planned: Ripple aims to introduce smart contracts via mainnet upgrades by 2025, enhancing XRPL's utility.
- Market Reaction: XRP price dropped 3% to $0.5260 following the announcement.
Ripple’s Roadmap for Smart Contracts
Ripple has outlined plans to integrate smart contract functionality into the XRP Ledger, leveraging features like hooks (lightweight smart contracts). A 2025 timeline was proposed in an official press release, marking a pivotal step toward broadening XRPL’s use cases—potentially boosting demand for XRP.
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Technical Analysis: XRP Price Trends
XRP's price action reflects a bearish trend, with a 5% decline likely toward the $0.5026 support level (tested on September 6). Key observations:
- MACD Indicator: Red histogram bars signal sustained downward momentum.
- Critical Resistance: A break above the Fair Value Gap (FVG) at $0.5785 could invalidate bearish forecasts, targeting $0.60.
XRP/USDT Daily Chart Highlights
- Current Price: $0.5293 (as of writing).
- Liquidity Zone: $0.5026 (August–September support).
FAQs About Ripple and XRP
1. What is Ripple’s role in blockchain payments?
Ripple Labs develops solutions for cross-border transactions using XRP and the decentralized XRP Ledger (XRPL). Its network, RippleNet, connects financial institutions globally.
2. How does XRP function on the XRPL?
XRP acts as the native token for trustless, instant payments on XRPL, eliminating intermediaries through its Interledger Protocol.
3. Why are smart contracts important for XRPL?
Smart contracts would enable programmable transactions (e.g., DeFi apps), expanding XRPL’s ecosystem beyond payments.
4. What risks does XRP’s price volatility pose?
Investors face market risks, including liquidity swings and regulatory uncertainties. Always conduct independent research.
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Disclaimer
This content includes forward-looking statements subject to risks. Cryptocurrency investments involve volatility and potential loss. FXStreet and the author assume no liability for decisions made based on this information.