Ripple begins testing Ethereum sidechain

Ripple begins testing Ethereum sidechain

Ripple has begun the testing of an Ethereum Virtual Machine compatible sidechain to the XRP Ledger, the payment firm's own blockchain, that will allow developers to deploy smart contracts.

Ripple and XRPL will benefit from the sidechain, as the applications and smart contracts deployed on the Ethereum network could be leveraged with little to no effort through it, CoinDesk said.

The EVM is a software that enables self-executing smart contracts on Ethereum. A sidechain running along the XRPL is currently in Ripple's devnet, a network where developers can test the new software before it goes live to a larger audience.

XRPL, Ripple Labs, has started operations in Europe recently despite a bearish market and fears of recession in the crypto industry. The firm said it has signed a deal with Lemonway, a Paris-based regulated payments provider for online marketplaces, and Swedish money transfer provider Xbaht.

It's not pleasant to see other companies in a tough situation in this market environment, but we do find ourselves growing fast and also we are well funded, said sendi Young, Ripple's managing director for the UK and Europe.