Thread by @woj4ke

A look on how Federated Sidechains (XBridge) by @Ripple could possibly increase the #XRPL ecosystem's chance at global #CBDC adoption🧵(1/8)

Let's clarify this first, it's somewhat clear to the general public that governments want centrally controlled payment networks to act as a medium for their CBDCs, regulatory enforcement and policy making. (2/8)

The key problems with creating a brand new payment network dedicated for your own governmental needs and currency, in a centralized environment is on-boarding users and the necessary liquidity needed to stimulate the payment network with real value. (3/8)

In any new up-and-coming network, on-boarding users and value will always be a challenge. @RippleXDev's new Federated Sidechain (XBridge) concept may play an incredible role for interoperability between different payment networks maintained by governments and the XRPL. (4/8)

XBridge enables the transfer of assets across different ledgers (ie. XRPL<->USD-L). A federated sidechain can be centralized or decentralized, open or private, its validators can follow any consensus mechanism. Any feature can be implemented to enforce law and regulation. (5/8)

This totally fits governments' needs and goals, they're able to deploy their very own payment network dedicated for their CBDC and they're able to on-board users and liquidity from the XRPL without any barriers. (6/8)

There are a few reasons to why governments aren't doing this publicly, mainly regulatory concerns and policy making. Additionally, the XRPL ecosystem lacks sufficient user, liquidity and the infrastructure & talent needed to facilitate such mature ecosystem. (7/8)

All and all, the XBridge concept is very valuable to the XRPL ecosystem for interoperability between different payment networks and such concept will bring many new use cases to XRP. FIN.

Currently, the XBridge amendment is under review and testing on the rippled codebase. Credit to @effofexx for helping me with structuring this thread 🤠