On 17 October, The developers announced the launch of a testnet version of the XRP ledger sidechain, which will allow the developers to develop a Defi protocol on the XRP ledger.
It is a side chain alongside the XRP blockchain, where developers will be able to deploy their customized Defi protocol to allow people to use the XRP ledger network speed to transfer any crypto asset but with the use of an XRP token as a native token.
In short, this latest development will unlock huge numbers of features in the XRP ledger blockchain ecosystem.
The sidechain will allow transactions at scalability of 1000 TPS per second and the second phase of this development work will be launched by the developers early next year.
XRP ledger: A Centralized Blockchain Network
Indeed the speed & fees of the network of the XRP ledger is much better than all the other crypto networks. And also we will find the XRPL network better in terms of many aspects.
But one thing, which is not much better about the XRPL network, is its centralized nature. All the backend computational power for the XRPL network came from the Ripple labs team, which is not the usual case for all other Proof-of-stake Crypto networks.
Due to the centralized nature of the XRPL network, the majority of the crypto proponents don’t like Ripple & XRP.
Ripple is headquartered in San Francisco as a Fintech company and uses XRP token global trade liquidity to provide cross-border money transactions for small and big businesses.
In December 2020, The United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and claimed that XRP is indeed security, which is unregistered with the agency. The lawsuit fight is going on between Ripple & SEC.