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ILP Webinar 10/2015

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Introductory webinar on the Interledger Protocol: payments across payment networks

Published in: Economy & Finance
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ILP Webinar 10/2015

  1. 1. Introductory Webinar Interledger Oct 20th • Evan Schwartz & Stefan Thomas 1
  2. 2. Payments Work Great! 2
  3. 3. Payments Work Great!* * Within Each Payment System 3
  4. 4. So Let's Use One System for Everything? 4
  5. 5. But Different People Have Different Needs... Micropayments Bank-to-bank settlement 5
  6. 6. But Different People Have Different Needs... Maximum Decentralization Minimum Latency 6
  7. 7. But Different People Have Different Needs... Zero Inflation Zero Interest 7
  8. 8. …Served by Different Assets and Ledgers 8
  9. 9. How Do You Pay Across Ledgers? ??? 9
  10. 10. There Are Lots of Ways 10
  11. 11. But No Standard 11
  12. 12. Why isn't it like the Internet? 12
  13. 13. Internet standards are about relaying information 13
  14. 14. Can we relay money? 14
  15. 15. Ledgers Track Accounts and Balances Sender RecipientLedger 15
  16. 16. But: Not Everyone Is on the Same Ledger 16
  17. 17. Connectors Relay Money Connector 17
  18. 18. Connectors Relay Money Connector Alice 100 Chloe 0 Chloe 100 Bob 0 100 100 Payment vs. Payment 18
  19. 19. What if the connector drops it? 19
  20. 20. Money Would Be Lost Alice 100 Chloe 0 Chloe 100 Bob 0 ? 100 20
  21. 21. We need Atomicity 21
  22. 22. Either Both Transactions Execute... Alice 100 Chloe 0 Chloe 100 Bob 0 100 100 22
  23. 23. ...Or Neither of Them Do Alice 100 Chloe 0 Chloe 100 Bob 0 23
  24. 24. We use escrow and notaries to provide atomicity 24
  25. 25. Atomic Payments Alice 100 Escrow 0 Chloe 0 Chloe 100 Escrow 0 Bob 0 Ledger-Provided Escrow Protects Participants from Risk 25
  26. 26. Atomic Payments Alice 100 Escrow 0 Chloe 0 Chloe 100 Escrow 0 Bob 0 Notaries Coordinate Transfers on Different Ledgers 26
  27. 27. In the Preparation Phase, the sender and connectors escrow funds 27
  28. 28. Atomic Payments Alice 100 Escrow 0 Chloe 0 Chloe 100 Escrow 0 Bob 0 Preparation Phase 100 28
  29. 29. Atomic Payments Alice 0 Escrow 100 Chloe 0 Chloe 100 Escrow 0 Bob 0 Preparation Phase 100 29
  30. 30. Atomic Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 100 Bob 0 Preparation Phase 30
  31. 31. In the Execution Phase, a receipt from the recipient unlocks escrowed funds 31
  32. 32. Atomic Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 100 Bob 0 Recipient Signs Receipt Before a Timeout 32
  33. 33. Atomic Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 100 Bob 0 Notaries Pass Receipt to Ledgers 100100 33
  34. 34. Atomic Payments Alice 0 Escrow 0 Chloe 100 Chloe 0 Escrow 0 Bob 100 Payment is Completed 34
  35. 35. And without Notaries? 35
  36. 36. In the Universal mode, transfer ordering ensures payment is executed fully 36
  37. 37. Universal Payments Alice 100 Escrow 0 Chloe 0 Chloe 100 Escrow 0 Bob 0 Same Setup 37
  38. 38. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 100 Bob 0 Funds Are Escrowed By Sender and Connectors 38
  39. 39. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 100 Bob 0 Recipient Signs Receipt 39
  40. 40. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 100 Bob 0 Recipient Receives Money 100 40
  41. 41. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 0 Bob 100 How Does Chloe Get Reimbursed? 41
  42. 42. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 0 Bob 100 Chloe Gets Receipt 42
  43. 43. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 0 Bob 100 Chloe Passes the Receipt On 43
  44. 44. Universal Payments Alice 0 Escrow 100 Chloe 0 Chloe 0 Escrow 0 Bob 100 Chloe Gets Paid 100 44
  45. 45. Universal Payments Alice 0 Escrow 0 Chloe 100 Chloe 0 Escrow 0 Bob 100 Payment Is Complete 45
  46. 46. This enables money to be securely relayed 46
  47. 47. Chained Payments From Any Sender to Any Recipient 47
  48. 48. Risk-Free for Sender and Recipient 48
  49. 49. Limitlessly Scalable Connectors and Ledgers Can Be Added to Handle More Payments 49
  50. 50. Connecting Disparate Systems Minimal Standard to Link Banks, Cryptocurrencies, etc 50
  51. 51. Let’s Build the Internet of Value 51
  52. 52. Join the Interledger Community Group Interledger.org 52

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