Interledger
Stefan Thomas
An Overview
The State of Payments Is Sad.
Today’s Infrastructure
Low-Volume High-Value Slow Batch Payments
3
Designed for High Value or Batch Payments
A System From a Different Time
Photo by NASA
Where Is The Competition?
Photo: CountryStyle Photography
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Accepted Payment MethodsPrineta.com
Plenty of Innovation
But: Global Reach Is Prohibitively Expensive
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Nostro account costs: liquidity, regulations, operations, risk and compliance
Ledgers Track Accounts and Balances
Sender RecipientLedger
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Central Ledger Model
Distributed Ledger Model
The World Will Never AgreeOn One Ledger
Diversity Is A Good Thing
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BlockchainACH Mobile Money Card Networks
But Why Is Everything Disconnected?
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BlockchainACH Mobile Money Card Networks
How Is Money Transferred Across Ledgers?
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We Know That There Must Be Local Transfers
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Alice 100
??? 0
??? 110
Bob 0100 110
Connectors Link Two Ledgers
Connector
Alice 100
Chloe 0
Chloe 100
Bob 0100 100
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address: "us.wf.bob"amount: "1023.20"When?Why?
Interledger In One Slide (Really)
Bilateral Connections Don't Scale
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Bilateral Connections Don't Scale
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O(n2)
Bilateral Connections Don't Scale
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O(n2)
Networks Do Scale
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O(n)
Networks Do Scale
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O(n)
Sending With No Direct Connection
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O(n)
We Need Multiple Hops
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O(n)
TO THEWORKSHOP!
TO THEWORKSHOP!
Learning From History
Internet: Network of Networks
The internet protocol implements two basic functions:addressing and fragmentation.
— RFC 791
“
Internet: Network of Networks
204.28.124.148IP Address
Internet Architecture
IP
WIFI BLUETOOTH ETHERNET
Internetwork
Network
Transport TCP UDP
Application HTTP SMTP NNTP NTP RTP
InterledgerThe protocol for connecting ledgers.
Interledger Architecture
ILP
ISO 20022BITCOIN ETHEREUM
Interledger
Ledger
Application SPSP PPSP ...
Where?How much?
Interledger In One Slide (Really)
address: "us.wf.bob"How much?
Interledger In One Slide (Really)
address: "us.wf.bob"amount: "1023.20"
Interledger In One Slide (Really)
address: "us.wf.bob"amount: "1023.20"expiry: "2016-07-06T09:00:10Z"Why?
Interledger In One Slide (Really)
address: "us.wf.bob"amount: "1023.20"expiry: "2016-07-06T09:00:10Z"condition: "cc:0:3:4a7DEpj8f9..."
Interledger In One Slide (Really)
Now We Can Support Longer Chains
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BlockchainACH Mobile Money Card Networks
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A Standard for Real-Time Payments Across Networks