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Recent enhancements have been implemented to Ripple’s XRP Ledger (XRPL) as the network aims to excel and gain further momentum. This also benefits XRP, which functions as the network’s intermediary currency.
Ripple’s XRP Ledger Receives A Fresh Update
In an X post, XRP validator Vet disclosed that the credentials modification on the XRP Ledger has become operational. He elaborated that credentials can be utilized to validate compliance protocols, such as KYC and AML, for an individual or organization and assigned to their decentralized identity. This aids in further establishing trust in the network.
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Vet also pointed out that the modification has been executed natively on the XRP Ledger. Importantly, this update is part of a broader initiative to facilitate compliance modifications on the network. With decentralized identities and credentials deployed, Vet indicated that their forthcoming objective is to focus on permissioned domains and permissioned DEX.
Ripple and other stakeholders of the XRP Ledger seek to leverage these compliance modifications to draw in more institutions to the network, allowing them to conform to traditional finance (TradFi) standards even on-chain. This arises as the network aspires to be the primary choice for tokenization. Ripple recently asserted that 10% of global assets will transition to being tokenized by 2030, and is certainly keen on tapping into this trillion-dollar market.
Ripple Engineer Analyzes Importance Of This Update
In an X post, Ripple engineer Kenny elaborated that the credentials update provides developers and companies a method to manage identity validations and compliance needs directly on the XRP Ledger. These modifications negate the necessity for approval of each account individually. The Ripple engineer observed that traditionally, verifying user credentials such as KYC necessitates multiple verifications across various platforms.
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Kenny mentioned that this approach is not only inefficient but also heightens privacy vulnerabilities due to sensitive data needing to be shared multiple times. Hence, this highlights the necessity of the XRP Ledger credentials update. The Ripple engineer indicated that this feature allows for credentials to be issued, stored, and validated natively on the XRPL.
He outlined the advantages of how this enables users to demonstrate a required criterion without facing repetitive verification. Kenny further noted that this will streamline the onboarding process and bolster security while preserving privacy. The Ripple engineer additionally provided an example of what a typical flow would look like employing this credentials feature.
A business will specify the credentials it needs, such as the KYC, after which a trusted issuer generates and signs that credential. The user then accepts and saves these credentials in their XRP Ledger account. This way, the credential is verified on-chain every time the user engages with the business.
At the time of this writing, the XRP price is trading at approximately $2.83, having risen over the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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