XRP the native token of leading cross-border blockchain platform Ripple is now cross-chain compatible with Wanchain and Ethereum testnet. The Wanchain team revealed this development on March 29 on twitter and further explained it in a medium post.
According to the report, the Wanchain team has successfully integrated a cross-chain bridge connecting the Wanchain testnet, Ethereum’s Rinkeby testnet, and XRP Ledger testnet. This essentially means that XRP can be moved across the three networks.
This development is a major one and enables XRP token holders to access DeFi applications within the Wanchain ecosystem.
Cross-chain compatibility enabled by Wanchain Universal Multichain Bridges
XRP’s cross chain capability is enabled by Wanchains interoperability solution called the Universal Multichain Bridges. This uses a cross-chain mechanism that ensures that every cross-chain bridge is powered by a unified collateral pool backed by Wanchain’s Storeman Group which consists of 21 decentralized Storeman Nodes.
For example, when an XRP holder initiates a transaction to move their tokens to a compatible DeFi smart contract blockchain. The Wanchain Storeman Group transfers the tokens sent to a locked account on the XRP Ledger. The Storeman Group then mints the equivalent tokens on either Ethereum (wanXRP@ethereum) or Wanchain (wanXRP@wanchain).
The wrapped tokens can then be used to conduct relevant DeFi transactions and be swapped into other Ethereum or Wanchain based tokens. Swapping Wan XRP between Ethereum and Wanchain is possible using the existing ERC20/WRC20 bridges. In this scenario, the Storeman Group burns the wanXRP on the original chain and mints new tokens on the destination chain
Wanchain revealed that since the testing phase is over, the full XRP integration will soon be launched on the Wanchain Mainnet. It will be interesting to see the new developments that come as a result of the cross-chain compatibility.