Stefan Thomas, former chief technology officer (CTO) of Ripple and now CEO of Coil, recently revealed plans to develop a new version of Codius, the smart contract platform he created.
Thomas shared the news on a recent Future Money podcast, saying it was too early to discuss details. His announcement has sparked comment, with industry experts like Max Avery highlighting the potential impact it could have on the XRPL.
Codius Core System
In a recent thread on X, Avery, a market commentator and trading consultant, indicated that Codius could be an important addition to the XRP ecosystem.
Launched in 2014, Codius set out to create an open-source environment for hosting decentralized applications (dApps) that provides greater scalability and flexibility than traditional blockchain platforms.
Avery noted that if successfully reimplemented, Codius could help expand XRPL’s capabilities to include off-chain smart contract processing and a scalable application layer.
Why Codius is Important for the XRP Ledger
Thomas originally envisioned Codius as a hosting platform that could allow smart contracts to operate outside the limitations of a single blockchain.
Unlike typical blockchain-based smart contracts, Codius operates on a peer-to-peer network, allowing for decentralized hosting. Avery believes this flexibility could give the XRP Ledger a unique advantage in the smart contract space.
Because it processes off-chain contracts, Codius can reduce the computational load on XRPL while maintaining high transaction speeds. This design will allow XRPL to maintain low fees and high transaction speeds despite the creation and execution of complex applications.
Additionally, Codius boasts language flexibility. As a result, developers can use widely used programming languages such as Java and C++ to write smart contracts. This makes the platform accessible to a larger number of developers.
Avery suggested that this open approach could attract new talent to the XRP ecosystem. This effect, he said, could lead to the growth of innovative dApps that would drive the growth and adoption of XRPL.
Compatibility and scalability of application layer
Codius also boasts compatibility with multiple blockchains and payment networks, making the platform an adaptive solution for interoperability between ledgers.
Avery noted that cross-compatibility aligns with Ripple’s broader vision of an “Internet of Value,” where digital assets and real currencies move seamlessly across networks.
Because Codius facilitates these interactions, XRPL could become the central infrastructure for decentralized finance (DeFi) and cross-border payments, increasing the volume of transactions on the ledger.
Additionally, Codius’ scalable application layer means that computational tasks are adequately distributed. This will help reduce the overload of the XRPL itself. By handling resource-intensive tasks outside the ledger, Codius allows the XRP ledger to operate with minimal latency.
New Use Cases for XRPL
The re-implementation of Codius could open up a variety of use cases across industries, particularly in areas such as micropayments and the Internet of Things (IoT).
Given XRPL’s low transaction fees, Codius-based applications can use XRP for cost-effective microtransactions.
Avery also noted that content monetization platforms where micropayments are important could find value in this functionality. Codius can manage new types of transactions through XRPL by managing the contract logic off-ledger.
Additionally, Avery suggested that the revival of Codius could create new incentives for developers to use XRPL due to its language-agnostic structure and freedom to integrate external data sources.
