Interledger Internetworking for Money Evan Schwartz Engineer at - - PowerPoint PPT Presentation

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Interledger Internetworking for Money Evan Schwartz Engineer at - - PowerPoint PPT Presentation

Jan 25, 2024 375 likes •878 views

Interledger Internetworking for Money Evan Schwartz Engineer at Ripple Co-Inventor of Interledger Payments are broken. Accepting Payments in a Turkish Starbucks Accepting Payments Online Accepting Payments Online Payment Methods Accepted By

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Interledger

Evan Schwartz Engineer at Ripple Co-Inventor of Interledger

Internetworking for Money

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Payments are broken.

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Accepting Payments in a Turkish Starbucks

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Payment Methods Accepted By Prineta.com

Accepting Payments Online

Accepting Payments Online

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The World Will Never Agree On One Ledger

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Payment Networks Are Disconnected

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Blockchain Banks Mobile Money Online Wallets

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Information networks were disconnected too

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Internet

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in·ter·net·work·ing

The interconnection of two or more networks so as to form a larger network.

noun

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How Do We Fix Payments?

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Blockchain Banks Mobile Money Online Wallets

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Blockchain Banks Mobile Money Online Wallets

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Internetworking For Money

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Interledger

The protocol for connecting ledgers

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Internetworking Ingredients:

  • 1. Routers
  • 2. Multi-Hop
  • 3. Address + Packet
  • 4. Routing Protocols
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Internetworking Ingredients:

  • 1. Routers
  • 2. Multi-Hop
  • 3. Address + Packet
  • 4. Routing Protocols
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Connectors Link Two Ledgers

Connector EUR USD

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Connectors Exchange Currencies

Alice 100 Chloe Chloe 107 Bob

EUR USD

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Bilateral Connections Don't Scale

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Bilateral Connections Don't Scale

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O(n2)

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Bilateral Connections Don't Scale

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O(n2)

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Networks Do Scale

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O(n)

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But There Isn't Always A Direct Connection

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O(n)

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We Need Multiple Hops

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O(n)

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Internetworking Ingredients:

  • 1. Routers
  • 2. Multi-Hop
  • 3. Address + Packet
  • 4. Routing Protocols
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Multi-hop is trickier with money than with data.

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Correspondent Banking: Optimistic Execution EXECUTE

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Correspondent Banking: Optimistic Execution FAIL

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  • 1. PREPARE

Interledger: Two-Phase Execution Secures Multi-Hop Transfers

REFERENCES

  • J. Poon and T. Drya, The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments, 2015
  • S. Thomas and E. Schwartz, A Protocol for Interledger Payments, 2015
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  • 1. PREPARE
  • 2. EXECUTE

Interledger: Two-Phase Execution Secures Multi-Hop Transfers

REFERENCES

  • J. Poon and T. Drya, The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments, 2015
  • S. Thomas and E. Schwartz, A Protocol for Interledger Payments, 2015
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Internetworking Ingredients:

  • 1. Routers
  • 2. Multi-Hop
  • 3. Address + Packet
  • 4. Routing Protocols
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{ destination_account: "us.usd.chase.bob.car" destination_amount: "5.99" }

Interledger In One Slide

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Internetworking Ingredients:

  • 1. Routers
  • 2. Multi-Hop
  • 3. Address + Packet
  • 4. Routing Protocols
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{ "ledger": "peer.-vcNd.eur.", "account": "peer.-vcNd.eur.KRixgcBCBd...", "data": { "method": "broadcast_routes", "data": [{ "source_ledger": "peer.-vcNd.eur.", "destination_ledger": "peer.oTnBF.usd.", "points": [ [0, 0], [100000000, 107195180] ], "min_message_window": 1, "source_account": "peer.-vcNd.eur.Y_luxphkAy..." }] } }

Connectors Broadcast Rates to Populate Routing Tables

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OUR INSPIRATION

The History & Architecture of the Internet

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Internet Architecture

IP

WIFI BLUETOOTH ETHERNET Internetwork Network Transport TCP UDP Application HTTP SMTP NNTP NTP RTP

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Interledger Architecture

ILP

BITCOIN ETHEREUM RIPPLE Interledger Ledger Transport SSP PRP Application SPSP HTTP-ILP PAYTORRENT

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Interledger

Internetworking for Money

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DEMO

Making an Interledger Payment

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Broken payments are breaking the Web

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Tim Cook, CEO Apple When an online service is free, you're not the customer.

You're the product.

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Few Can Convince People to Pay with Credit Cards

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Marketplaces Collect Payments, Take Large Cut of Profits

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Peer to Peer Model Needs a Neutral (Micro)Payment Protocol

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Interledger

Internetworking for Money

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Internetworking increases connectivity and competition

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Internetworking lowers costs to enable new use cases

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Interledger Project

KEY FACTS

Open Protocol Community Group @ W3C 220+ Contributors

Banks Central banks Payments companies Tech giants Consulting companies Blockchain companies

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Blockchain Banks Mobile Money Online Wallets

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Help Us Connect the World's Ledgers!

interledger.org @interledger

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Get Involved at Interledger.org

Find Me After to Get an Interledger Sticker And To Learn About “Dial-Up” Interledger