1.
Interledger
Evan Schwartz
Node.js Dev at Ripple
Co-Inventor of Interledger
@_emschwartz
Internetworking for Money

2.
Agenda
1. Payments need interoperability
2. Interledger connects ledgers
3. Impact of internetworking
4. Demo!

3.
Developer has an idea for a new service

4.
How to monetize?

5.
Credit card to sign up?

6.
Few services can convince users to give CCs

7.
Advertising?

8.
Selling users’ data?

9.
Why is it so hard to just get paid?

10.
Payments are broken.

11.
Payment Methods Accepted By Prineta.com
Accepting Payments OnlineAccepting Payments Online

12.
Every Tech Company Has A Payment Product

13.
Blockchains Have the Same Problem

14.
Payment Networks Are Disconnected
BlockchainBanks Mobile Money Online Wallets

15.
?

16.
X

17.
Need to pay from any network, to any network
Payments Should Be As Easy As:

18.
We need:
1. A standardized payment API
2. To pay anyone, on any network

19.
We need:
Internetworking

20.
in·ter·net·work·ing
Connecting networks through gateways that
route data packets between the networks
noun

21.
Internetworking Connects Everyone

22.
BlockchainBanks Mobile Money Online Wallets
Internetworking For Payment Networks

23.
Interledger
Internetworking for Money

24.
Interledger Project
KEY FACTS
Open Protocol Community Group @ W3C 240+ Contributors
Banks
Central banks
Payments companies
Tech giants
Consulting companies
Blockchain companies

25.
Interledger is
not a blockchain.

26.
Interledger has
not a single network.

27.
Interledger has
no built-in currency.

28.
Interledger is an
internetworking protocol.

29.
OUR INSPIRATION
The History & Architecture of the Internet

30.
SIMPLICITY

31.
Internet Architecture
IP
WIFI BLUETOOTH ETHERNET
Internetwork
Network
Transport TCP UDP
Application HTTP SMTP NNTP NTP RTP

32.
Interledger Architecture
ILP
BLOCKCHAINS
BANKS MOBILE MONEY
Interledger
Ledger
Transport IPR PSK PSK-ECDH
Application SPSP HTTP-ILP PAYTORRENT

33.
Interledger 101

34.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

35.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

36.
BlockchainBanks Mobile Money Online Wallets
Need a Way to Interact with Every Kind of Ledger

37.
All Ledgers Are Treated Equally

38.
IP Works Over Every Type of Network

39.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

40.
Payments Within One Network Are Trivial
Sender ReceiverLedger

41.
Payments Across Ledgers
Sender ReceiverLedger Ledger
?

42.
Connectors Link Two Ledgers
Connector
EUR USD

43.
Connectors Exchange Currencies
Alice 100
Chloe 0
Chloe 107
Bob 0
EUR USD

44.
Connectors Generate Revenue from Spreads
Alice 100
Chloe 0
Chloe 107
Bob 0
EUR USD

45.
Payments Across Connectors?
EUR USD
?
BTC

46.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

47.
Multi-hop is trickier with
money than with data

48.
Correspondent Banking: Optimistic Execution
EXECUTE

49.
Correspondent Banking: Optimistic Execution
FAIL

50.
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

51.
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

52.
1. PREPARE
2. EXECUTE
Sender is Guaranteed Fulfillment or Money Back
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

53.
Conditional payments enable
trustless connectors

54.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

55.
{
account: "g.us.usd.chase.bob.car",
amount: "10",
data: "SGVsbG8gV29ybGQhCg..."
}
Interledger In One Slide

56.
{
account: "g.crypto.bitcoin.1BvBMSEY...",
amount: "10",
data: "SGVsbG8gV29ybGQhCg..."
}
Interledger Addresses Work for Any Ledger

57.
Core of IP is the Address and Packet Formats

58.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

59.
Addressing is Separate From Routing
Please deliver to
g.crypto.bitcoin.1x... Right away!

60.
Today: Connectors Broadcast Routes to One Another
I’ve got
g.crypto.ethereum.
I can reach
g.eur.bitstamp.
I can reach
g.crypto.bitcoin.

61.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

62.
Internetworking:
Payments From Anyone, to Anywhere

63.
Internetworking Costs
Plummet
New Use
Cases

64.
Everywhere you want to be.
There are some things money can't buy.
For everything else, there's MasterCard.
TODAY
Payment Networks Compete For Reach

65.
This used to be true for
information networks too

66.
"… biggest …"
"… more members …"
"… more services…"

67.
Internetworking commoditized reach

68.
America's fastest Internet.
Reliable. Safe. Fast.
High-speed Internet from AT&T
Fast, reliable, unlimited Internet
WITH INTERNETWORKING
Providers Compete on Speed, Reliability, Ease-of-use

69.
Efficient Switching Removes Fixed Costs
unviable viable viable
fixed cost
Transaction size
Cost
Transaction size
Cost
pre-internetworking
fixed costs price out
long-tail use cases
post-internetworking
new business models
become possible

70.
Internet — Cost vs Volume
SOURCES
Cisco
DrPeering

71.
Internetworking Costs
Plummet
New Use
Cases

72.
The Internet Enabled Fundamentally New Business Models

73.
Internetworking Costs
Plummet
New Use
Cases

74.
INTERNET OF VALUE
Pay For Lunch with Gold, Stocks, or Community Currency

75.
INTERNET OF VALUE
Pay for Media As You Stream It

76.
Sending Payment...
$1241.20 remaining; current speed: 13.2 $/s

77.
Demo Time!

78.
W3C Web Payments API - Interledger is Supported Method

79.
● National Payment Infrastructure
● Central Bank Settlement
● Cross-Border Payments
● Remittances and Mobile Money
● Connecting Cryptocurrency Exchanges
● Blockchain Interoperability
● Micropayments
Interledger Use Cases Today

80.
● Join the community calls + mailing list
● Running an ILP Kit
● Implementations in Go, Rust, <insert your favorite>
● Routing research
● Ledger plugins for other ledgers
● Building micropayments into apps/services
● More ideas? Get in touch!
Ways to Get Involved

81.
BlockchainBanks Mobile Money Online Wallets
Help Create the Internet of Value!
interledger.org @interledger