ETH Rio 24 - EVM Programmability and Iteroperability | Jazzi Cooper

Transcript

able and and durable technology that is stood the the test of time second Advantage which I think is exciting for a lot of you as as blockchain developers is the low learning curve uh so all of the features full blockchain um functionality from tokenization uh to onchain trading payments Etc are all accessible and available uh using simple web2 style uh development methods so calling apis uh using web2 friendly languages like JavaScript Java python uh without having to develop your own smart contracts and no new languages like uh solidity for example uh and lastly it's highly performant so transactions settle in three to four seconds uh at a fraction of a cent per transaction which is um you know very attractive to users

within Financial use cases who do not want to be paying 10 111 just to execute you know a $10 trade for example um and lastly environmentally sustainable um and that was sort of the the kind of principle that xrpl was was built upon so we've talked a little bit about uh Native uh functionality to zoom in on that and talk about the exact functionalities that are offered on The xrp Ledger um there's a number of different capabilities there's not a virtual machine like you see uh with ethereum uh there's a set of of sort of pre-developed features that are available for you to tap into at the protocol layer anyone can develop and propose new features it's open source technology uh but there is a rigorous

review auditing and onchain governance process that any new feature proposal must go through uh in order to go live on on xrpl mainnet so to call out a couple in particular that that we're excited about so token standards uh you can issue fungible tokens similar to erc20 tokens non-fungible tokens just like you see with ERC 721 tokens all natively without having to build smart contracts uh there's additional token standards in the works that are similar to semi- funable tokens uh development really continues there um asset controls so there's built-in compliance um as well as others in The xrp Ledger Community have been working closely with financial institutions as we've seen the rise of tokenized T bills tokenized rwas and built in compliance features like

the ability to control who can hold a particular token as you can imagine um you know tokenized treasuries which require some sort of compliance screening having that onchain uh compliance mechanism becomes really handy with some of these new institutional Finance use cases payments as I mentioned before is sort of the bread and butter of The xrp Ledger um it's exactly what it was built for and lastly the decentralized exchange this is the feature that we are the most excited about and I'll talk a little bit more about the Dex and its components in the next next couple of slides um so all of these features functionalities as I mentioned exist at the core protocol layer not in a virtual machine layer and applications can tap into them by developing using simple apis um to go to the next slide to give an example of

this you can see at the bottom uh a protocol wide liquidity pool within the amm Decks that exists it's all aggregated all of the liquidity on a single layer and then user interfaces and applications such as Orchestra Finance sologenic Crossmark um wallets uh like Zaman can tap into this uh and offer unique user experience specific to their user type whether they want to cater to D gens or institutional users or just everyday people that are looking for financial applications they can focus on building a bespoke user experience uh and everything else all the liquidity is taken care of uh at the at the core protocol layer layer uh so to talk a little bit about

the Dex the Dex is something that we're really proud of really excited about within the xrpl community um the xrpl has actually had an order book based decentralized exchange since uh 2012 so it's been around for quite a long time there weren't a lot of friendly user interfaces available that uh people could tap into so it's relatively um you know less well known than some of the other dexes but it's fully on chain order books that operate 247 uh which is really exciting um a lot of these order books are are basically managed by by market makers um and have some neat features involved for example um if you want to make an exchange of let's say Japanese Yen with the Australian dollar uh and there isn't sufficient liquidity available you can

use a neat protocol n native feature called Auto bridging where basically the The Ledger technology creates um uses xrp as a bridge token to allow for uh maximum liquidity and for users to get the best possible price even when there isn't a highly liquid trading pair available already in the order books uh so really powerful really we're really excited about it especially for highly liquid um trading pairs like xrp against USD for example but there are some shortcomings of the order book based decks as we've seen with automated market makers come on the scene uh in the past six seven years or so uh the ability to give token holders the opportunity to earn yield is is really really valuable for everyone participating in the blockchain community uh so adding automated market

makers not only gives token holders yield opportunities but it also gives the um ability to have liquidity at any price point by using an algorithm rather than manual human or company market makers uh you can create liquidity along every point of the price curve and allow for Less um less liquid tokens uh like new project tokens for example be able to trade uh quickly and effectively at an attractive price point uh by using the liquidity pools uh so the way we've created uh this new superx as we're locally calling it uh is having an automatic by directional integration so a user will come on on chain place a trade order and that will automatically execute wherever the user can get the

best possible price uh so the user on the front end even the application doesn't know whether that trade's going to settle by order books or liquidity pools the smart order routing engine underneath the hood will take care of all of that uh give the user the best the best possible price point um so we're really excited about about the um decentralized exchange and how it can be used across users throughout all blockchain I talked a little bit about the orderbook based exchange to highlight a couple features that we're excited about with the amm and this is a new uh expansion that was just released uh about last month on xrpl mainnet um has already seen a significant adoption and increase in tvl um couple features to highlight there uh in addition to

aggregated liquidity which I mentioned uh is the continuous auction mechanism so for those of you that operate in defi regularly you probably noticed some of the challenges that have to do with impermanent loss uh so the auction mechanism has a unique uh sort of mechanism to minimize impermanent loss maximize returns for for LPS so moving on a little bit and talking about interoperability so there's all these neat features on the xrpl but it is uh limited uh there are you know additional capabilities and additional use cases that take place on other ch so it's really important to create um ways and channels that users from all different chains can tap into uh these powerful Dex capabilities so we signed a

partnership with Axel AC cross Chain Bridge uh that's integrated with over 55 different chains to allow users to seamlessly come to The xrp Ledger swap tokens um another application on top of axlr called squid router offers cross chain swaps without the user even knowing uh which chain that the tra that the trade is ultimately executing on so you can be interacting with nfts on polygon trying to make a purchase you need to swap tokens you open up squid router execute your trade that's that executes on the xrpl deck lands back in your wallet and the user doesn't even know that they've left so there's a huge user experience uh Improvement that comes from this type of cross chain interoperability rails uh that we're

really excited about and the xrpl de ultimately will allow users to trade any asset that they'd like for a fraction of a penny uh un less in 4 seconds um this will range from tokenized Financial assets Crypt native assets stable coins uh you name it uh and this continues this Vision continues Beyond trading so beyond trading we're excited for users to interact with xr's payments capabilities trading capabilities tokenization I mentioned the different types of tokens available before uh as well as new protocols like borrowing and lending uh to come in the future uh so through Partnerships and things like Bridges like axillar aggregators like squid um and new side chain protocols like the

evm interoperability that I'm going to touch on next um really unlocks the ability for uh xrpl users to interoperate with um you know other blockchains and and vice versa which really creates a better world for everyone um operating within crypto so let's talk a little bit about the evm sidechain which is a a new product um that uh Ripple has launched in partnership with our friends over at pist um but just to back up a little bit before we go into the evm specific side chain I'll introduce the concept of of side chains so xrpl as I mentioned has specific uh design has specific features available specific consensus mechanism but as blockchain is being adopted by

more and more types of entities institutions Enterprises there's a huge demand for custom functionality you might want your chain to be private you might want no nfts on your chain you might want um only nfts on your chain so you can have City Bank launching a fully private chain uh with their own consensus mechanism with their own validator set that's all securely interacts and securely connected uh to The xrp leder Ledger through a bridge called exus 38D uh similarly you might have you know Disney wants to launch their own public chain that's only Disney nfts uh and it doesn't make sense for all of that to live on xrpl mainnet so they can launch their own side chain and they can connect uh seamlessly securely to the xrp your main net uh and

so the side chain in particular that I want to talk a little bit about is the evm side chain uh which we're getting getting ready to to launch shortly so the evm side chain uh is a new chain basically has a consensus layer powered by comment bft execution layer using Cosmos SDK this will be part of the interchain network um proof of authority uh consensus using the cosmos SDK module and lastly evm uh smart contracts which is the main sort of motive in US building this um powered by the OS SDK so we're really excited about this partnership bringing all these powerful Technologies together to really meet the demand of the developer and being able to offer not only the core Financial Primitives that the xrpl is great at but

anything and everything that a developer uh can can really you know dream of when they're uh building on the The xrp Ledger so let's talk a little bit about the different ways uh we expect developers to be leveraging uh the evm side chain um cross chain apps is an an interesting idea that we've been leaning into recently with our partnership uh with Axel so um xrpl obviously has a lot of unique advantages very secure it's been around for a long time um secure consensus mechanisms users tokens and whatnot um but as I mentioned doesn't have Smart contracts a lot of developers wish to um you know relaunch the applications they've already built or just expand upon the capabilities that

already exist on The xrp Ledger um um so with this we can actually use Axel technology for xrpl users and xrpl applications to remotely call Smart contracts on any chain but in this case uh on the evm side chain so really starting with what the xrpl is great at and expanding upon that um to really allow for full Innovation full application development using the best of both worlds on xrl Main net uh as well as the evm side chain so why build cross chain applications on The xrp Ledger um as I mentioned you can tap into the 5 million plus xrp wallet holders build new daps uh that blend the best of both xrpl as

as well as evm uh and get the support uh to to build the next big thing so Crush chain apps is is one option we're also seeing applications just you know poured over smart contracts from other chains uh in order to be within the xrpl ecosystems uh it's really up to the developer and how they wish to build the best possible application uh for their users and really create uh competitive Advantage for their application so uh we invite you to join the first cohort o of cross chain dat builders on The xrp Ledger uh you can scan the QR code to to read the documentation learn a little bit more um and yeah that's that's all for me I'll be over at the xrpl booth if you have any questions and we encourage and invite you all to attend Apex the

developer conference that we're hosting uh next month in Amsterdam to learn more about xrpl development get in touch with the developer Community evm side chain development and and everything else between so thanks [Applause] all question question we have some time does anyone have questions yeah do you have one no okay

no questions yeah a second thank you just to break the ice um you mentioned the Dex and the liquidity pools and the how that works what are the requirements for uh let's say Brazilian assets should be listed or to be created in that de and use those liquid pools to trade those assets yeah yeah good question uh so basically first you need

to create the asset on the P ledger so you just need to issue the tokens pretty straightforward it's a payment transaction with some configurations uh for you as the issuer um then it's effectively eligible for the order book The only thing that needs to happen is an order needs to be created I as a user create an offer create transaction simple API I want to trade um this particular token for a minimum of I want to trade X particular token for a minimum of Y token in response so the offer is created it's now in the order book Dex and can be executed executed uh executed there in terms of the amm similar process uh simple API amm create you create a amm liquidity pool for your stable coin and any counter asset that

you wish uh now it's available for trading on on both exchange mechanisms are there any compliance or legal requirements for those assets to be listed do you do do you have to follow rules or whatever uh there's no compliance requirements that the chains fully permissionless if you as an issuer decide to set compliance requirements for example the authorization feature I me mentioned before uh then that will limit the amount of users that can interact with the token but it's it's up to the assurer nothing's forced yeah hi uh I do believe that we have a low number in development

xrp uh Ledger uh so this evm is a response for for the other's crypto platforms protocols and more uh do you have more incentives for bringing this growth to development in the chain so just to play that back the question was about the inspiration for evbm and whether or not there are incentives yeah because I think all the protocols went to bring uh more development in their chain so uh they give air drops nowadays is a big thing it's impend Ian layer so what ex uh what Ripple and xrp Ledger is going to do to bring those

development and see numbers like SOA activities yeah there's there's a number of different programs there's hackathons uh available grants programs accelerator programs uh some are oriented towards uh the evm side chain some are oriented towards W Main net and some a combination of both as you saw with the cross chain app development so those are the main uh sort of uh Pathways right now in terms of um in terms of in direct incentives I think a lot of times with new chains what you're seeing is a brand new token uh that you then air dropped as as an incentive one of the main advantages of the evm side chain is uh xrp is actually the gas token um so xrp will be sent over from uh xrpl midet uh

and so yeah we're not going to going to airdrop xrp necessarily but uh you know there are a number of programs that you can get involved with and um you can grab a a pamphlet at the booth that kind of walk through the different different opportunities thank you yeah thanks all [Applause]