Interledger Overview

Stefan Thomas • Evan Schwartz

1st Community Group Workshop

Why are we here?

Payments Work Great!Payments Work Great!*

...until you need to go across systems

Payments are easywithin one ledger!

The world will never agree to use one single ledger

We need an open protocol for

interledger payments

INTERLEDGERPayments across payment networks

8

Ledgers track accounts and balances

Sender RecipientLedger

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But not everyone is on the same ledger

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Connectors relay money

Connector

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Connectors relay money

Connector

Alice 100

Chloe 0

Chloe 110

Bob 0100 110

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What if theconnector drops it?

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Money would be lost

Alice 100

Chloe 0

Chloe 110

Bob 0

?

100

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Escrow provides security

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Ledger-provided escrow reduces risk

Alice 100

Escrow 0

Chloe 0

Chloe 110

Escrow 0

Bob 0

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Funds are escrowed from left to right

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Alice 100

Escrow 0

Chloe 0

Chloe 110

Escrow 0

Bob 0

ESCROW

Sender puts funds into escrow

Alice 100

Escrow 0

Chloe 0

Chloe 110

Escrow 0

Bob 0

100

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Connectors put funds into escrow

Alice 0

Escrow 100

Chloe 0

Chloe 110

Escrow 0

Bob 0

110

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Transfers are executed right to left

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Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 110

Bob 0

EXECUTION

Recipient signs receipt

Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 110

Bob 0

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Receipt releases funds from escrow

Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 110

Bob 0110

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How does the connector get reimbursed?

Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 0

Bob 110

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?

Connector gets receipt from ledger

Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 0

Bob 110

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Connector passes on the receipt

Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 0

Bob 110

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Receipt releases funds from escrow

Alice 0

Escrow 100

Chloe 0

Chloe 0

Escrow 0

Bob 110100

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Payment is complete

Alice 0

Escrow 0

Chloe 100

Chloe 0

Escrow 0

Bob 110

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ESCROW

Transfers are escrowed L2R, executed R2L

EXECUTION

Paths can be short

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Or long

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Or even longer

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The Interledger

Any ledger can join…

Just by peering

ILP Value Proposition

Everyone has global reach.OPEN

Fit to be a standard.NEUTRAL

Anybody, any currency, any country.UNIVERSAL

Demo Time

Questions?

Use Case Example + DemoContent Micropayments

Let’s say Robert wrote a poem...

“Two roads diverged in a yellow wood,And sorry I could not travel both...”

And Sarah turned that into a song...

“Two roads diverged in a yellow wood,And sorry I could not travel both...”

And Tracy used that song in a movie....

“Two roads diverged in a yellow wood,And sorry I could not travel both...”

Robert loves other people reading,sharing, and using his poems

Robert loves other people reading,sharing, and using his poems

...as long as he is paid fairly.

Sarah loves other people listening to, sharing, and using her songs

...as long as she is paid fairly.

Tracy loves other people watching,sharing, and using her movies

...as long as she is paid fairly.

What if we could directly pay Robert, Sarah, and Tracyat the same time?