XRP Labs founder and lead developer Wietse Wind announced the launch of the public beta testing network for the Hooks amendment. Built for the XRP Ledger, “Hooks” has long been anticipated in the XRP community.
When fully deployed, Hooks is set to enable smart contract functionality for the XRP Ledger on the first tier. The amendment thus becomes an important part of the XRPL and allows it to store small data objects.
The capacity allows the XRP Ledger to expand its use cases and functionalities. In addition to high transaction throughput, cost-efficient and fast settlement, the platform could have advanced or simple features as explained by XRP Labs:
Hooks are small, efficient pieces of code defined on an XRPL account, allowing logic to be executed before and / or after XRPL transactions. These brackets can be very simple, such as: “decline payments <10 XRP", or "send 10% to my savings account for all outgoing payments" or more advanced.
The public beta testing network allows developers to try, “break”, code, and experiment with Hooks. That way, XRP Labs can “confidently” draft an amendment that will be put to a vote at the end of 2021. Emi Yoshikawa Vice President of Corporate Strategy & Operations at Ripple said
Super exciting! “Hooks” would greatly increase the XRP Ledger’s potential use cases! Hooks add smart contract functionality to the XRP Ledger: ‘layer one’ custom code (…).
XRPL Hooks New use cases can increase the demand for XRP
XRP Labs presents four possible scenarios where Hooks can have a real impact on XRPL users. First, a user can send XRP to a second user with custom logic. Therefore, the Hook can receive a payment and send a percentage of the transaction to a separate account.
Another use case could be implemented at businesses or banking institutions to program the Hook with a feature that declines or accepts payments if the senders meet certain conditions, such as having an account.
Conversely, an outgoing transaction can be declined by a user’s Hook account if the destination account is on a “BlockList provided by an on-ledger oracle”. The user would still have the ability to program the Hook to follow or ignore this instruction. By doing this, XRPL could be an efficient tool to combat scammers and other illegal activities.
Finally, an institution could manage a Hooks account to route payment to Cold Storage. The institution could also program the Hook’s account to require two signatures to send money. Thus, the amendment could expand XRPL use cases and boost demand for XRP.
XRP has seen a major rally in the past week. At time of writing, XRP is trading at $ 1.35 with sideways movement on the daily chart. The tokens followed general market sentiment but still posted a 155.5% gain on the 30-day chart.