Ripple and XRPL communities are discussing a new development proposal that can be a significant milestone in the progress of XRP Ledger's ecosystem of dApps. It can also contribute to bringing "real-world" data to the on-chain mechanisms rolled out on top of XRPL.
XRP Ledger might onboard its own oracles, proposal published
Ripple's software engineer Gregory Tsipenyuk released a proposal dubbed 0045 XLS-45d Price Oracles on GitHub. It suggests introducing native on-chain oracles for XRP Ledger, a veteran decentralized network. Not unlike other blockchains, with these oracles, XRPL is poised to receive "real-world data, for instance market prices, exchange rates, interest rates, or weather conditions onto the blockchain."
This was unexpected. 😱
— Krippenreiter (@krippenreiter) August 18, 2023
Doesn't that completely change how the XRPL-AMM design (G3M) could be upgraded in the future? @dexfi_pro
"Enables the integration of external data (market prices, exchange rates, interest rates) & real-world events into XRPL"
🔗 https://t.co/7aBkITDJee pic.twitter.com/elIr5nwo00
Technically, it introduces a new on-chain object for XRPL, a PriceOracle instance. Tsipenyuk provided a detailed explanation of what it takes to launch and integrate this instance to the blockchain.
It also reconsiders some elements of API stack on XRP Ledger. The developer demonstrated samples of transactions designed to create, delete and update a certain XRPL price oracle.
Should this proposal be approved by the XRPL community, dApps on this blockchain will be able to leverage data from off-chain sources in its business operations.
As covered by U.Today previously, XRPL decentralized oracles were in the focus of the latest Ripple grant program for blockchain developers.
Another Chainlink, another Flare?
XRPL community enthusiasts are guessing whether this solution is set to replace existing oracles protocols, including the likes of Chainlink (LINK) and Flare Networks (FLR).
At the same time, the new mechanism will be able to collaborate with Chainlink (LINK) instead of replacing it. "Chainlink" is demonstrated as a sample for an "Oracle Provider" in its design.
First and foremost, the native oracles will be integrated into XRPL-based AMMs. With the new feature, they will easily retrieve accurate pricing from third-party sources, commentators say.
Alex Dovbnya
