interledger overview // luxembourg center for security, reliability, and trust meetup
TRANSCRIPT
Interledger
Evan SchwartzCo-Inventor of InterledgerManaging Director of Ripple Luxembourg
Enabling the Internet of Value
Data Moves Freely
100110100110101100110100110101100110100110101
Why Doesn’t Money?
€€€€€ €€€
Accepting Payments In a Turkish Coffee Shop
Payment Methods Accepted By Prineta.com
Accepting Payments Online
Blockchains Are Not Interoperable
The World Will Never AgreeOn One Ledger
Payment Networks Are Disconnected
8
BlockchainBanks Mobile Money Online Wallets
RESULTFrustration for Consumers, Merchants and Corporates
InterledgerThe protocol for connecting ledgers
Let’s see it in action!
Interledger is not a blockchain
Interledger isnot a network
Interledger is an internetworking protocol
internetworking
in·ter·net·work·ingThe interconnection of two or more networks so as to form a larger network.
noun
Everywhere you want to be.
There are some things money can't buy.For everything else, there's MasterCard.
is what matters.
REACHIn global payments today,
This used to be true for information networks, too.
"… biggest …"
"… more members …"
"… more services…"
Internetworking commoditized reach.
America's fastest Internet.
Reliable. Safe. Fast.High-speed Internet from AT&T
Fast, reliable, unlimited Internet
COST
SPEEDNow, it's all about
RELIABILITY SIMPLICITY
COSTSPEED
Internetworking changes the game.
QUALITYREACH
Payment Networks Are Disconnected
27
BlockchainBanks Mobile Money Online Wallets
BlockchainBanks Mobile Money Online Wallets
28
Internetworking For Payment Networks
InterledgerThe protocol for connecting ledgers
Interledger provides:1. Connectors2. Address + Packet3. Security
Connectors Link Two Ledgers
Connector
Alice 100
Chloe 0
Chloe 107
Bob 0
EUR USD
TO:us.wf.bob
Connectors Use the Packet and Address to Route Payments
Sender Attaches Interledger Packet to Local Transfer
Alice 100
Chloe 0
Chloe 107
Bob 0100
us.wf.bob
107.00
Connector Forwards the Packet via Another Transfer
Alice 0
Chloe 100
Chloe 107
Bob 0
us.wf.bob
309.00
Paths Can Be Extended to Connect Everyone
This Is The Internet of Value
Interledger is inspired by thehistory and architecture
of the Internet
Internet Is A Simple Protocol With A Layered Architecture
IP
WIFI BLUETOOTH ETHERNET
Internetwork
Network
Transport TCP UDP
Application HTTP SMTP NNTP NTP RTP
Interledger Is A Simple Protocol With A Layered Architecture
ILP
CASH BANKS BLOCKCHAINMOBILE MONEY
Interledger
Ledger
Transport IPR SSP ...
Application SPSP PPSP RPSP...
The Internet: Just Cost Saving?
Removing Fixed Costs Enables Smaller Transactions
unviable viable viable
fixed cost
Transaction size
Cost
Transaction size
Cost
pre-internetworkingfixed costs price out long-tail use cases
post-internetworkingnew business models
become possible
The Internet Enabled Completely New Business Models
The Internet of Value is a game changer.
Interledger ProjectKEY FACTS
Open Protocol Community Group @ W3C 230+ Contributors
Banks
Central banks
Payments companies
Tech giants
Consulting companies
Blockchain companies
● Banks
● Central Banks
● Tech Companies
● Blockchains
Interledger Adoption
● Banks
● Central Banks
● Tech Companies
● Blockchains
Interledger Adoption
Sample of Ripple’s Customers
48
● Banks
● Central Banks
● Tech Companies
● Blockchains
Interledger Adoption
● Banks
● Central Banks
● Tech Companies
● Blockchains
Interledger Adoption
W3C Web Payments Working Group
W3C Web Payments Working Group
Adrian Hope-Bailie Nick Telford-Reed
● Banks
● Central Banks
● Tech Companies
● Blockchains
Interledger Adoption
Blockchain and ILP
Natively ILP-enabled
ILP compatible
● Banks
● Central Banks
● Tech Companies
● Blockchains
● You
Interledger Adoption
“Dial-Up” Interledger
ILP-EnablementAlso Known As The Right Way
Adoption To-DateStatus: Not Great
Protocols Have Humble BeginningsGotta Start Somewhere
Dial-Up Interledger
Dial-Up Interledger
Connector
Dial-Up Interledger
User Connector
Dial-Up Interledger
ACH, SEPA, PayPal, ...
User Connector
Dial-Up Interledger
Cash
User Connector
Separated Clearing & Settlement
Connect To Or Run An “ILP Kit”
Get Involved at Interledger.org
Get Involved at Interledger.org
Find Me After to Get anInterledger Sticker ;-)