The battle between XRP Ledger (XRPL) and Ethereum is becoming more intense, especially as XRPL prepares to launch a major upgrade in June. The future of XRP relies on XLS-80, a groundbreaking feature focused on compliance and regulatory domains, aimed at achieving widespread acceptance among financial institutions.
What is XLS-80 and why is it important?
XLS-80 is a proposed upgrade that helps integrate official compliance capabilities directly into the XRP Ledger. Its highlight is the ability to create regulatory domains, allowing organizations to operate on-chain data more smoothly. This helps minimize complex procedures in traditional finance, making blockchain adoption easier without overly relying on third-party solutions.
THE CONCEPT OF BASELINE COMPLIANCE AND THE STRENGTH OF XRPL
Ethereum has dominated the DeFi market, relying heavily on off-chain compliance tools like third-party KYC and limited smart contracts. Meanwhile, the XRP community emphasizes that XLS-80 could change the game by keeping everything on-chain. This brings greater transparency, reduces risks, and facilitates the auditing and monitoring of financial data in strictly regulated environments.
"Regulatory DeFi applications like Aave Arc need separate contracts or private pools controlled by external KYC lists. XLS-80 can minimize these barriers due to its built-in capabilities."
OPERATION OF REGULATED AMMs AS EXPLAINED BY Ripple's CTO
David Schwartz, the CTO of Ripple, explains how regulated AMMs work when using XLS-80. Only users from approved domains can provide liquidity in these pools. When users are removed from the domain, they must sell their LP Tokens on the open market, rather than directly owning liquidity on XRPL. This helps maintain strict control without undermining the integrity of the broader XRPL ecosystem.
XRPL UPGRADE IN JUNE: A BENCHMARK FOR THE FUTURE?
The 2.5.0 version of XRPL expected to launch in June could cause a significant turning point in the project's development strategy, especially in the area of licensed finance. Many experts predict that this will be a stepping stone for XRPL to surpass Ethereum and Solana in attracting institutional investments and large-scale collaborations. The built-in on-chain compliance technology opens up comprehensive application possibilities, meeting the stringent requirements of traditional financial institutions.
Final opinion
While Ethereum remains the dominant platform in the global DeFi market, XLS-80 from XRPL could reshape how regulated financial institutions approach blockchain. With the capability of direct compliance module integration, XRP could become the primary platform for a new governance and operational model in the highly regulated cryptocurrency space. Will XRP have enough competitive strength to become the new leader? Time will tell. We are witnessing a life-and-death battle in the enterprise cryptocurrency field.
Source: https://tintucbitcoin.com/xrp-xls-80-co-the-thach-thuc-ethereum/
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