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XRPL to Receive New DeFi Use Cases as Decentralized ID Proposal Goes Live

Fri, 05/05/2023 - 15:40
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Tomiwabold Olajide
Ripple's VP of strategy and operations shares details on decentralized ID proposal
XRPL to Receive New DeFi Use Cases as Decentralized ID Proposal Goes Live
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Emi Yoshikawa, Ripple's VP of strategy and operations, has shared more details on the decentralized ID (XLS-40d) proposal that recently went live. Earlier, the research team released a spec for native support of decentralized identity (XLS-40d) for community review.

According to Yoshikawa, the decentralized ID (XLS-40d) currently proposed to the XRPL community is DID as a native feature of the protocol layer, compliant with the W3C DID standard.

The World Wide Web Consortium's (W3C) standardized Decentralized Identifiers (DIDs) enable verifiable, self-sovereign digital identities and are designed to be compatible with any distributed ledger or network.

For that reason, Yoshikawa says DID is standardized, so it seems that it will play an active role as an enabling technology that supports various use cases (DeFi, tokenization) of XRPL in the future.

The XLS-40d proposal aims to define a DID format for XRP Ledger that confirms with W3C DID standards that can be created, owned and controlled by any XRPL account holder.

It would also define DID implementation methods that can be used by any service, wallet or application, as it aims to leverage existing (and emerging) decentralized identity standards proposed by the W3C.

XRPL's upcoming developments

On Feb. 22, Ripple developers put forth a new interoperability standard (XLS-38d) that will allow for a cross-chain bridge to enable interoperability between various blockchain networks.

Regardless of the underlying protocols or programming languages used by different blockchains, the proposed standard will allow users to transfer digital assets and data between them.

XRPL Developer Reports Unusual Traffic on Public XRPL Infrastructure: Details

This would expand the use cases and adoption of XRP Ledger by enabling tokens from one blockchain to be locked in an account on XRP Ledger while an equivalent number of tokens are issued on another blockchain.

Over one million assets have been minted on the ledger since XLS-20 went live on the mainnet. Meanwhile, sidechains and the automated market maker (AMM) amendment are coming to a close and will soon undergo third-party security reviews. 

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.