Blockchain analyst WrathofKahneman has recently expressed a shift in his perspective regarding the integration of smart contracts into the XRP Ledger (XRPL). He believes that incorporating programmability can enhance the network's appeal to institutions while preserving its inherent speed and simplicity.
WrathofKahneman highlighted that smart contracts could potentially transfer operational responsibilities from validators to developers. This reallocation of tasks could help maintain the ledger's stability and efficiency.
He further explained that institutions often resort to rebuilding coordination systems off-ledger, a process that increases expenses and hinders adoption. Smart contracts, by enabling logic to reside directly within the ledger, could streamline institutional workflows. This simplification is anticipated to lower entry barriers and accelerate enterprise adoption.
How Smart Contracts Could Transform the XRPL Ecosystem
WrathofKahneman suggested that this development might also lessen Ripple's influence over the XRPL. By empowering developers to innovate independently, the network could achieve greater decentralization and adaptability. Kahneman emphasized the importance of smart contract programmability being minimal yet effective, thereby safeguarding the XRPL's core advantage of fast and reliable value transfer.
He noted that the proposed WASM-based framework is designed to strike this balance. This framework could facilitate sandboxed, deterministic smart contract execution. Such a structure would enable institutions to build custom solutions without fundamentally altering the ledger's architecture, thereby ensuring continued stability and high performance.
I have long been opposed to smart contracts on the #XRPL, preferring its speed & simplicity of form. Recently, my opinion has changed & I'd like to share why. You may think differently. I'd love to hear it. Here are my thoughts:
🧵/9— WrathofKahneman (@WKahneman) November 10, 2025
A New Phase for XRP Ledger Development
This recent update signifies the XRP Ledger's introduction of native Layer-1 smart contract capabilities, integrating Ethereum-like functionality with XRPL's distinctive transaction system. Developers can now construct decentralized applications directly on the ledger, expanding possibilities beyond traditional token functionalities.
According to Angell, this advancement grants developers access to XRPL's core features without requiring UNL approval, offering enhanced flexibility and execution efficiency. The new framework incorporates multi-language support, on-chain ABIs, and is designed to facilitate a variety of applications, including DeFi derivatives, staking tokens, and NFT marketplaces. The initial smart contract extension, named "Smart Escrows," is slated for release in the first quarter of 2026.