Expert Reveals How XRP Ledger Outshines Ethereum With XLS-80, Ripple CTO Reacts

In the aftermath of Apex 2025, the notion of permissioned domains has reignited the debate on XRPL vs Ethereum, with expert WrathofKahneman shedding light on how XLS-80 could give XRP Ledger a competitive edge. Can XRPL’s XLS-80 outperform Ethereum’s off-chain compliance methods?

XLS-80 Key to XRPL’s Success over Ethereum, Says Expert

In a series of X posts, XRP expert WrathofKahneman offered a glimpse into the implications of XRP Ledger’s XLS-80 permissioned domains. According to him, XLS-80 will give XRPL a lead over Ethereum in areas like institutional adoption, regulatory compliance, and beyond.

Reportedly, this innovative approach could offer a more seamless and efficient solution for institutions looking to operate in a regulated environment. Thus, it sets XRP apart from Ethereum, potentially reducing friction for organizations and paving the way for increased adoption. The expert stated,

XLS-80 would embed compliance directly into the protocol. In contrast, Ethereum handles compliance off-chain: permissioned DeFi apps like Aave Arc require separate contracts or private pools gated by external KYC lists. By remaining native to the XRPL it could reduce the friction for orgs to operate there, too.

Recently, the debate surrounding XRPL vs Ethereum has gained momentum, with experts weighing the strengths and weaknesses of these two prominent blockchain platforms. The latest discussion comes closely following Ripple CTO David Schwartz’s proposal to upgrade the XRP Ledger’s transaction fee management, drawing comparisons with Ethereum.

In addition, WrathofKahneman highlighted XLS-80’s benefits, including a permissioned DEX, institutional adoption, native compliance, Ripple’s market maker role, and XRPL’s utility growth.

The XRPL vs Ethereum debate is gaining traction ahead of the XRP Ledger’s June upgrade to version 2.5.0. As CoinGape previously reported, this upgrade could potentially give XRPL an edge over competitors like Solana and Ethereum.

How XLS-80 Impact XRPL AMM? David Schwartz Explains

Further, WrathofKahneman noted that the permissioned domains could impact XRPL’s AMM (Automated Market Maker). XLS-80 allows regulated entities to create compliant liquidity pools with permissioned LPs, says the expert. Additionally, these domains could integrate with future XRPL extensions, expanding the ledger’s capabilities.

He also refers to the XRPL dUNL validator VET’s explanation on the possible use cases of permissioned domains. VET stated,

That’s totally doable! More so, every extension can be used that way e.g smart escrows can already check for credentials and more. A use case could be in the lending protocol, whereby you get better rates if you own certain credentials and if not you still get a rate quoted.

In response to the threads, Ripple CTO David Schwartz offers a detailed explanation on “what it’s supposed to mean to permission the AMM.” According to David Schwartz, permissioned AMMs on the XRP Ledger would restrict liquidity pool access to authorized users within a domain. Removed users would need to trade their LP tokens on the open market, as their direct redemption rights would be revoked.

Schwartz highlighted that LP tokens represent domain-specific claims, not ownership of the ledger’s liquidity. He further added,

(There’s no reason for the LP tokens themselves to be in the domain. They’re issued and managed by the XRP ledger itself. There could be permissioned order books for them, but they can always be bought/sold for XRP on the open DEX.)