An expert outlines how XLS-80 gives the XRP Ledger a significant advantage over Ethereum, sparking a response from Ripple CTO David Schwartz.
The XRP Ledger (XRPL) is getting ready for a major update, and many analysts think the new XLS-80 feature could make it a stronger choice than Ethereum, especially for institutional users.
Expert Claims XLS-80 Is What Sets XRPL Apart from Ethereum
Crypto expert WrathofKahneman highlighted XLS-80 as a significant improvement that could give XRPL an advantage. This feature introduces “permissioned domains,” which allow compliance rules to be built directly into the system. This differs from Ethereum, where compliance is typically handled off-chain using tools such as Aave Arc’s gated pools or third-party KYC lists.
According to WrathofKahneman, integrating compliance directly at the protocol layer removes onboarding friction for regulated institutions. It opens the door to features such as permissioned decentralized exchanges and compliant automated market makers (AMMs). He believes this could position XRPL to lead in areas like finance-grade DeFi, custody, and tokenized asset management.
Ripple’s David Schwartz Unpacks XLS-80’s Influence on XRPL’s AMM Mechanics
Ripple’s CTO, David Schwartz, discussed how allowing only approved users to access liquidity pools on the XRPL could alter the way liquidity is provided. In this system, only verified users could access these pools, while others would need to trade their LP tokens in open markets. This setup aims to ensure regulatory safety while maintaining the network’s overall operational capacity.
Schwartz also highlighted a major area for improvement: the fixed transaction fees of XRPL. Currently, users pay the same fees regardless of network traffic, which can result in overpayment. To address this, Schwartz suggested two new fee systems: one would refund users any extra fees over the minimum required, and the other would calculate overpayments based on the average fee on the network and return those excess fees.
These proposed changes aim to make the fees on XRPL more appealing when compared to Ethereum, which already offers a system to refund unused gas fees. Even though Ethereum employs a different approach, XRPL’s “Hooks” mechanism currently sets a flat fee based on the highest possible execution cost. Developers and validators are now working to improve this system.
The discussion about XLS-80 and the new fee ideas occurs just before the XRPL’s version 2.5.0 upgrade, scheduled for June. With recent additions like USDC, these updates demonstrate Ripple’s ongoing commitment to making XRPL a preferred choice for businesses seeking clear regulations, efficient operations, and scalable financial solutions.
