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- Ripple and the XRP community have received a new proposal that could completely change how the XRPL-AMM design (G3M) could be upgraded in the future.
- The proposal would mean dApps on the ledger would be able to integrate off-chain data in their operations.
A new proposal on GitHub has become a key talking point in the Ripple (XRP) community. The proposal brought forth by Ripple’s software engineer Gregory Tsipenyuk, dubbed 0045 XLS-45d Price Oracles could lead to a reinvention of the XRP Ledger with the introduction of XRPL native oracles. Some speculate that it could also be an attempt to reinvent Chainlink (LINK).
Oracles are applications that source, verify, and transmit external information to primarily smart contracts running on the blockchain.
Through the XRPL oracles, real-world data such as market prices, exchange rates, interest rates, or weather conditions will be introduced on the XRPL. However, unlike Chainlink which offers the same oracles, this proposal looks to outsource who should provide such data.
Instead of replacing Chainlink, existing oracles protocols, including the likes of Chainlink and Flare Networks will be leveraged and are demonstrated as a sample for an “Oracle Provider” in the proposal. One observer excited about the new prospect noted;
I don’t think the use cases are the same because XRPL does not serve smart contracts. The only purpose I can think of for needing on-chain “PriceOracles” (as an object) for XRPL is to upgrade the AMM as soon as the fundamentals are enacted on the ledger.
This was unexpected. 😱
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
— Krippenreiter (@krippenreiter) August 18, 2023
Oracles are powerful tools that play a crucial role in bridging the real world and blockchain. By allowing blockchains to access outside information, oracles make the blockchain receives secure and immutable data to expand its real-world use cases.
XRP Price Reaction
Although the new development has stirred up a lot of excitement in the community, the native token of the blockchain, XRP, has witnessed negative change. In the last 24 hours, XRP has lost a little over 5 percent, pushing its weekly losses to nearly 20 percent. At the time of press, XRP is exchanging for $0.52 after bouncing back from the crucial $0.50 support tested last week. The next key target for investors is a retest of the $0.55 resistance.
The token has come under massive pressure in the last couple of days as retail investors cash out. Ripple Labs which created and developed the XRP Ledger stands accused of selling unregistered securities in the form of XRP tokens. Despite the judge presiding over the case ruling that the tokens are not securities, the SEC has moved to file for an interlocutory appeal in its lawsuit against Ripple Labs. Panic has taken control over the token, with a majority choosing to cash out in expectation of a prolonged hearing that could keep prices below key targets.
