Learning Xahau: The Importance Of Building Your Own Business Layer.

In the previous article Learning Xahau: What is Xahau?, we described what Xahau is and what it is not in general terms. The article defined Xahau as an independent blockchain based on the original XRP Ledger code, with several added features—one of the most important being Hooks, a new way to implement advanced logic within Xahau. Compared to other popular blockchain networks, we could say that Hooks are like smart contracts in EVM-based networks, but with a completely different philosophy and approach, tailored to Xahau’s technology.

The previous article also pointed out the need to add “smart contract” technology to Xahau, since it was not originally available in the XRP Ledger. But we should not reduce Xahau to a simple XRP Ledger + smart contracts formula. Let’s dive deeper into why this addition is necessary and how it benefits all network participants—from individual users to large corporations.

The Pre-Xahau Days

In my talk at APEX 2024, I discussed the current state of the XRP Ledger, where different proposals must compete for the same slice of the pie. Whenever a new feature is introduced to the XRP Ledger, different entities try to build interfaces around it, which forces these actors to compete to offer the best service to the end user. Clear examples include the many NFT marketplaces or services that enable interaction with AMMs.

Due to the lack of advanced logic in the XRP Ledger, every new feature must be integrated directly into its core code and go through a validator consensus process, requiring more than 80% agreement for at least 14 consecutive days. So, every update to the XRP Ledger becomes a difficult and prolonged process. Furthermore, not just anyone can propose, develop, and have their code accepted into the XRP Ledger. Contributions from the community have been rare. It’s usually much easier for Ripple, as a major actor in the network, to propose and implement changes. This greatly speeds up development but clearly highlights the lack of decentralization. Independent developers can’t afford to invest months or years (and money) developing improvements without guarantees that their code will be accepted and included in the XRP Ledger. (This is precisely what happened with the original Hooks proposal, which eventually became the Xahau blockchain.)

Another issue with the XRP Ledger is that every feature aims to be as efficient as possible, which is great for the end user, but makes it nearly impossible for companies and businesses to monetize their use of the XRP Ledger—unless they create interfaces or interpretations that simplify things for thousands of users. And not only do they have to focus on interfaces, but they must also compete in that narrow niche with others, since there are very few ways to build on the XRP Ledger. If a development such as NFTs or the AMM has already been implemented, it is very unlikely that another proposal with similar characteristics from an external team will be approved—especially considering that the original implementation is already optimized to run on the XRP Ledger without third-party fees. And even if the new proposal is more efficient, it can be argued that the new logic could jeopardize the blockchain itself and prevent it from reaching the end user. A dead end.

The importance of building your own business layer

For all these reasons, it’s time to take a close look at Xahau. For the first time in a blockchain based on XRP Ledger technology, anyone can create advanced logic thanks to Hooks—what I like to call “The Business Layer”. Why is this insteresting? Because those interested in building businesses don’t need to ask anyone for permission to build on Xahau. Thanks to Hooks, anyone can implement their own business logic and charge for it (if they want). Major actors in Xahau can’t stop you—they can’t block your business layer from working or prevent you from charging for it. You can create new features or processes and profit from them. There’s no need to wait to submit a proposal, hope it gets approved, and pray validators support your amendment—Hooks eliminate that entire process.

The business layer doesn’t just let you create exclusive logic for your own operations. You can share your Hooks with others, and each time your Hook runs, it can include a fee (optional) that is sent to your account. And if you don’t have ideas of your own, you can always earn money by coding Hooks for clients who don’t have the time to do it themselves.

If you don’t like the publicly available Hooks, you can always create a new version with your own improvements. If you see that a third party is running a business using Hooks and you don’t agree with their approach, you can always offer better Hooks. In other blockchains with smart contracts (such as the boom of Uniswap clones), this is a common practice. But in an XRP Ledger ecosystem, this is the first time we’re allowed to run our own business layer directly on the blockchain itself—Xahau.

The Xahau era begins

Xahau created its first ledger on Mainnet on October 30, 2023. This makes Xahau a newborn blockchain. If something in this post caught your attention, I forgot to mention that Xahau is the perfect ground to plant your ideas. Since it has only been live for a short time, very few projects have dared to take the leap. This gives those eager to build the opportunity to become pioneers in Xahau and set the path for others to follow. If you have an idea, now is the time. It doesn’t have to be innovative or revolutionary—even simple projects are viable options, as they’ve likely never been brought to Xahau before. From here, I encourage you to take action.

Links

Official Website
Official Docs
Hooks Builder
Discord Server
Xahaud
X Account