If things work on schedule, wXRP will launch itself on the Ethereum blockchain the next month- as reported by Wrapped.com. The move will definitely help the holders of XRP to interact with several other aspects of decentralized finance- which includes the execution of smart contracts for its utility in lending as well as borrowing, swapping it with altcoins through their native tokens. As of now, the network has been built to handle receiving, sending, and holding XRP.
wXRP to Be Launched Through The Ethereum Blockchain
Most of the wrapped tokens are simple digital currencies that have been stored in a digital vault and seem to be operating on a completely different blockchain. Some of the popular wrapped tokens include Wrapped Bitcoin, which operates on the blockchain of Ethereum, and Wrapped ETH, which helps in converting ETH to the ERC-20 standard. It has been reported that wXRP could have an exchange ratio of 1:1 with XRP, with the custody provided through Hex Trust.
David Schwartz, the Chief Technology Officer of Ripple, previously tweeted that wXRP would be multichain. While ETH remains the primary choice of blockchain for launching tokens that are wrapped, the increasing fees of its gas have led to some major controversy among enthusiasts of crypto.
As reported by Ycharts.com, the average price of gas per Ethereum smart contract execution has risen to $184. The multi-chain integration would definitely help users wrap their XRP on chains that have far lower prices of gas.
Ripple Labs would also look towards disrupting such financial institutions like the blockchain of Ethereum, and the Society for Worldwide Interbank Financial Telecommunication, with accelerated times of settlement and lower fees. In order to work this out, the firm has developed its enterprise software RippleNet.