New updates have been made to Ripple’s XRP Ledger (XRPL) as the network looks to dominate and gain more traction. This is also a positive for XRP, which serves as the network’s bridge currency.
Ripple’s XRP Ledger Gets A New Update
In an X post, XRP validator Vet revealed that the credentials amendment on the XRP Ledger is now active. He explained that credentials can be applied to attest to compliance requirements, such as KYC and AML, for a user or institution and issued to their decentralized identity. This helps to further build trust in the network.
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Vet also noted that the amendment has all been done natively on the XRP Ledger. Notably, this update is part of a larger move to enable compliance amendments on the network. With decentralized identities and credentials implemented, Vet indicated that their next focus is to work on the permissioned domains and permissioned DEX.
Ripple and other XRP Ledger stakeholders aim to utilize these compliance amendments to attract more institutions to the network, enabling them to adhere to traditional finance (TradFi) standards even on-chain. This also comes as the network aims to become the go-to for tokenization. Ripple recently stated that 10% of global assets will become tokenized by 2030, and is undoubtedly looking to tap into this trillion-dollar market.
Ripple Engineer Breaks Down Significance Of This Update
In an X post, Ripple engineer Kenny explained that the credentials update gives developers and businesses a way to handle identity checks and compliance requirements directly on the XRP Ledger. With these, they do not need to approve each account one by one manually. The Ripple engineer noted that traditionally, verifying user credentials like KYC requires multiple checks across different platforms.
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Kenny remarked that this process isn’t only inefficient but also increases privacy risks because sensitive information has to be shared multiple times. As such, this makes the XRP Ledger credentials update vital. The Ripple engineer revealed that this feature enables credentials to be issued, stored, and verified natively on the XRPL.
He noted the benefits of how this allows users to prove a required criterion without undergoing repeated verification. Kenny also stated that this will improve the onboard process and enhance security, while maintaining privacy. The Ripple engineer further gave an example of what a typical flow will look like using this credentials feature.
A business will define the credentials it requires, such as the KYC, then a trusted issuer creates and signs that credential. The user then accepts and stores these credentials in their XRP Ledger account. That way, the credential is checked on-chain whenever the user interacts with the business.
At the time of writing, the XRP price is trading at around $2.83, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com