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According to an exciting announcement from RippleX’s official X account, the Oracle XRPL price change is now live. This amendment adds “Price Oracle” functionality to XRP Ledger, as defined in the XLS-47 specification.
The XRPL Price Oracle is intended to store price information on asset pairs that exist outside of XRP Ledger, allowing smart contracts that rely on XRP Ledger to use this information.
A blockchain oracle is a system in which a service transmits information about the outside world to the blockchain, which can then be accessed by decentralized applications (dApps) that primarily run on or with the blockchain.
Oracles provide a secure and efficient way to import real-world data onto a given blockchain system for smart contract use. This is particularly critical for institutional DeFi, which is at the heart of XRPL.
XRPL’s Oracle is a native protocol, meaning it is integrated into the network itself and not a Layer 2, like XRPL’s AMM. External oracles such as Band Protocol and DIA, which are currently integrated with XRPL, will also be able to connect and provide price data.
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With the new XRPL price oracle and integrations with Band Protocol and DIA, XRPL’s native oracles will be able to offer real-time data for key DeFi features such as AMM and lending protocols. This represents a significant step forward for institutional-grade DeFi.
The XRPL DID modification went live last week, marking another milestone for XRP Ledger. The DID is a unique identifier belonging to the user that is not controlled by any central authority.
XRP Price Oracle Use Cases
Many upcoming XRPL protocols will require oracles, such as the XRPL Lending Protocol for lending rates and liquidation management, as well as the XRPL AMM and DEX to determine asset prices across all Web2 and Web3 markets. The XRPL EVM Sidechain will also need it to support EVM smart contracts and fast data syncs between the mainnet and the sidechain.
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Tokenized assets would also require an XRP price oracle. In February, Ripple and Zoniqx announced a partnership that will bring Zoniqx’s asset tokenization infrastructure to XRP Ledger. This would require real-world asset prices to be broadcast in real-time on-chain.
