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Dhali integrates Xahau

Dhali has introduced Xahau support for our API providers, allowing them to charge their users in XAH. Here, we discuss our integration and explore what this does (and doesn't) mean for our users.

About Dhali

Dhali operates as a sophisticated API proxy, cryptographically validating blockchain transactions in real-time off the ledger. This approach allows us to monetise other providers APIs' in real-time, without the traditional bottlenecks associated with ledger closures. Our initial focus has been on XRP monetisation through XRPL.

Current limitations of XRPL

The XRPL is fantastic for payments. It's fast, reliable, cheap, and has consistent ledger close cadence. However, at the time of writing, XRPL only supports layer-2 transactions for XRP: other tokenised assets on XRPL cannot be used within layer-2 transactions. There are ongoing discussions within the XRPL community to support other tokens within payment channels. But these have not yet materialised into a protocol level solution. The absence of payment channel support for other tokens on XRPL is a key motivation for integrating Xahau with Dhali, as Xahau supports them through XLS-34.

What this current integration does and doesn't mean

This Xahau integration means that our customers will be able to link APIs to our platform and receive nightly payouts to their Xahau wallets in XAH. Although one of our key motivations for Xahau support is multi-token payment channels, this current integration will not support tokens on Xahau other than the native token, XAH. Rather, we have opened the door for supporting them in the future.

Also, Xahau is a chain that supports smart contract functionality through hooks. This integration is completely independent of Xahau's hooks feature.

Potential concern

Currently, Dhali uses the same classic address for supporting XAH on Xahau and XRP on XRPL. This raises concerns about layer-2 transactions on XRPL being used to spend payment channel deposits on Xahau. However, this risk is minimal as it would require identical payment channel IDs across both chains—a rare scenario. Even if this occurs, users would effectively be 'attacking' their own balance. We will monitor this issue and, if necessary, change the classic address used across chains.