XRP Ledger, the Layer 1 blockchain that uses the XRP token to facilitate multi-currency transactions, is slated to implement a major maintenance and bug-fixing upgrade Wednesday.
If you run a node, a computer that helps verify transactions on the network, you need update to the latest version by the deadline, or face disconnection from the network entirely. For regular users who just hold XRP in a wallet or on an exchange, you don't need to do anything.
The upgrade, called the fixCleanup3_1_3 amendment, patches the following key bugs and inefficiencies that have built up over time. Here's what each one does.
On the XRP Ledger, people create and trade non-fungible tokens, or digital collectible and gaming items. When a user lists an NFT for sale, it creates an "offer" on the network.
As of now, if an offer expires or just sits there without anyone accepting it, it stays on the ledger forever, taking up storage space. The impending fix will automatically delete such expired offers. Think of it like a classified ad in a newspaper: once the listing expires, the system tears it up instead of letting it pile up in the archives.
The XRP Ledger offers "Permissioned Domains," or controlled environments where only approved accounts can access specific assets, order books, or services and change their special settings.
But, there was a bug where even if a transaction failed, it could still accidentally change these restricted settings.
The XRP Ledger has "Vaults," which are secure storage containers for tokens. When you withdraw tokens from a vault to send them to another account, the receiving account has a limit on how many tokens it can accept, called a "trust line limit." Imagine a bank account that can only hold up to $10,000.
The bug: the system wasn't checking this limit when processing vault withdrawals. So you could potentially send more tokens than the receiving account could hold. The fix ensures the system now respects these limits, preventing overdrafts.
Like Ethereum or other smart contract blockchains, the XRP Ledger supports decentralized lending, where people can borrow and lend cryptocurrency without a bank.
When a loan gets defaulted or impaired, the system is supposed to update all the related records: the loan itself, the lender's records, and the vault holding collateral. The process, however, has been buggy sometimes with records not updating correctly and hence, balances got stale.
The impending fix ensures that when a loan's status changes, all the connected ledger entries update properly. It's like making sure that when you pay off part of your credit card, both your statement and the bank's internal records reflect that immediately.
If someone tries to overpay a loan that doesn’t allow overpayments, the system now returns a clear “no permission” error (tecNO_PERMISSION) instead of a generic invalid flag. This makes the rejection cleaner and easier for apps and users to understand.
Further, it adds a safety check for LoanBrokers, special entities that handle lending pools, to ensure the “CoverAvailable” amount they advertise exactly matches the actual assets sitting in their protected pseudo-account. This strengthens accounting accuracy and prevents any mismatch that could create confusion or risk in the lending system. CoverAvailable is the first-loss capital deposited to protect lenders if borrowers default.
These measures will be activated on the ledger Wednesday.
Validators and node operators need to upgrade their servers before activation or they'll get amendment-blocked and fall out of sync. A large portion of the network has reportedlty already updated.
XRP continues to trade between $1.30 and $1.40 for the fourth straight day, according to CoinDesk data.