Cardano founder Charles Hoskinson has signaled growing support for the introduction of XRP-based decentralized financial solutions (DEFI) into the Cardano ecosystem. In a recent interview, Hoskinson described the step as an advantageous opportunity to open up an enormous value – potentially over $ 140 billion – for Cardano and its broader user base.
The proposal comes at a time when Cardano expands its focus on cross-chain skills, including the efforts to bring defi applications of Bitcoin and XRP networks to its platform.
Full interview: https://t.co/8zutAPLIk5
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In the discussion withFrederick Munanwa von Bitcoin.comHoskinson said that he would like to see XRP Defi within the Smart Contract environment of Cardano. He explained that this would mean the introduction of a calculation layer in the XRP Ledger, which currently does not support native smart contracts. The upgrade would be available to new functions such as lending, borrowing and various decentralized financial services that are common in Ethereum and similar networks.
He pointed out that despite many developers who deal with XRP, the defi elements are still missing. With the bridging of XRP, Cardano users can now use their supporting tools and still access the liquidity and active users of XRP. As a result, more institutions and developers could interact on various networks and create applications that work across several blockchains.
The time of Hoskinson’s comments signals a shift in the relationship between Cardano and Ripple, as reported in our previous post. For years there was a publicly visible gap between the two communities, with disagreements in both technical and industry issues. That has changed in the past few months. Hoskinson stated that he and Ripple now have a work relationship that focuses on innovation and cooperation.
Although no formal agreement has been announced, the ongoing talks indicate that both parties match the research of the defi expansion. Ripple, which continues to make the largest contribution to the XRP ecosystem, has already expanded into institutional applications such as tokenized assets and cross-border payments. The Defi tooling from Cardano could offer a supplementary framework for further development.
In addition to XRP, Hoskinson confirmed the Cardano, which has long existed, in the support of defi applications for Bitcoin. He pointed out that Bitcoin Defi exceed the popular networks of value and user attractiveness today and could develop into a system that is four times the size of the defi ecosystems from Ethereum and Solana. Around $ 73.5 billion have been invested in the TVL from Ethereum and Avalanche.
Following the example of Bitcoin, the use of Utxo in Cardano is regarded as a plus for technology because it is less difficult to integrate. Many developers in the crypto sector believe that Cardano can offer a neutral place for the execution of Defi, since there are no integrated smart contracts in the Bitcoin network.
Within the Cardano community, the analysts believe that what happens to APC could lead to great fluctuations for ADA. According to a representative of the delegates, when BTC and XRP Defi was primarily connected by ADA, the price could increase to $ 20.
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