An Intro to XLS-20
Content:
General Information-
What is the XLS-20?
When was launch of XLS-20?
Who is using XLS-20?
What are the Pros/Cons of the XLS-20?
Closing Thoughts
General Information-
What is XLS-20?
XLS-20 is an amendment that was proposed by the validators of the XRPL. The amendment’s name is “XLS-20” and it enables NFTs to be traded on the XRP Ledger. This amendment marks a big milestone because it unlocks new use cases for builders who want to develop on the XRP Ledger. The XRPL offers massive advantages to build on versus other blockchains like Solana or Ethereum. NFTs on XRP Ledger means builders will (1) pay low-cost transaction fees (2) settle transactions in a few seconds (3) help sustain a carbon-neutral environment. The XRPL has existed for 10 years and has consistently handed a high throughput with no exploits, bugs, high gas fees, or blockchain shutdowns. This will attract many developers who wish to build out their projects on the ledger.
2. When was the launch of XLS-20?
XLS-20 was launched on 10/31/2022 and was delayed one time due to a bug. The details of the launch may be found here for further insight. Moving back to the bug, the bug caused a delay because there was a line of code that allowed marketplaces to drain wallets when connecting to users' wallets to buy NFTs. Something so highly anticipated as this would have caused massive problems if it launched with the bug. Imagine launching this new amendment with such a bug and people losing money because the community didn’t due their diligence. Nonetheless, the rollout didn’t happen until the line of code was amended and new code was introduced to fix the bug. The amended code details may be found here.
3. Who is using XLS-20?
XLS-20 is being used by many creators, and there is a lot of developer activity on the ledger since it launched. The good news is that XRPL is also compatible with the most common coding languages like C, C++, JavaScript, and other common coding languages. However, it's more important to note that outside funding from Ripple Labs and XRPLGrants.org has funded hundreds of projects and counting. Ripple Labs announced a 250$ Million dollar NFT creator fund in April 2022 that helps fund NFT projects that build on the XRPL. Another thing to note is that xrplgrants.org has also been funding projects built on the XRPL, but not limited to only NFTs. Nonetheless, there has already been a lot of interest to build on the XRPL as Monica Long who is a part of the Ripple team, confirmed that they have received thousands of applications for NFTs on the XRPL. Some of those projects may be found here.
Figure A
4. What are the Pros/Cons of the XLS-20?
First, we can start with the pros of XLS-20 then we will transition to the cons of this amendment to give both sides a fair shake. Without a doubt, the pros are going to outweigh the cons because of how many use cases are going to be unlocked. With NFTs enabled it will allow for more adoption and discovery to be had on the XRPL. Realistically the upside is exponential because the potential of NFTs is also exponential. To date, there is no blockchain like the XRPL for minting NFTs when you focus on the raw data. As I mentioned earlier, Solana(shutdowns) and Ethereum(gas fees) were the first and second most used blockchains for NFTs but have countless errors. XRPL fixes this because it has the cheapest fees, never had a shutdown, and existed longer than both blockchains which prove how robust this blockchain is. Another pro is that there are active grants to build on the XRPL from Ripple Labs and xrplgrants.org to build which makes it even more enticing. The biggest con is that the blockchain will become more congested but that doesn’t mean it can’t handle this throughput as XRP has more daily transactions than both Bitcoin and Ethereum.
Closing Thoughts
XLS-20 is a MAJOR upgrade for the XRPL as it opens new doors for opportunities. The XRPL has major advantages compared to competitors in the NFT space. It is faster, cheaper, carbon neutral, and has a proven track record of 10 years with no hiccups. It is also advantageous for developers and creators, especially with so many open grants from Ripple and xrplgrants.org. It’s almost a no-brainer to build your NFT project on the XRPL if you wish to build something of value. That is why we are seeing so many projects like ProprHomes (NFT Real Estate Protocol) building on the XRPL, Syfr Projects (An Intellectual Production Company) building on the XRPL, TKTZ (Ticket Event Solution) building on the XRPL and so many more that I could be here all day. I don’t know if you’ve noticed but, the XRPL has already been attracting high-level use cases with little speculative projects of collectibles or art. Not that there is nothing wrong with that, but it differentiates XRPL from other blockchains to focus on utility rather than speculation which leads me to believe that XLS-20 will bring A LOT OF VALUE TO THE XRPL.