1.
Interledger
Berlin - 1 & 2 June 2017

2.
Live Stream: https://bluejeans.com/795795755
Tweet @interledger or use the hashtag #interledger
Breakfast, afternoon tea provided both days
Lunch in the hotel/expo

3.
09:30 - 10:00 An Interledger Overview
10:00 - 10:45 KEYNOTE: How micropayments will change the world
10:45 - 11:00 Coffee/Tea break
11:00 - 12:30 Building the live Interledger network with ILP Kit and Connector.land
12:30 - 13:30 Lunch
13:30 - 13:45 A walkthrough of the Interledger Java implementation
13:45 - 14:15 DEMO: Ledger plugins and existing integrations
14:15 - 14:45 DEMO: Gatehub ledger plugins and APIs
14:45 - 15:00 Interledger and the W3C Web Payments APIs
15:00 - 15:15 Crypto-conditions
15:15 - 15:30 Coffee/Tea break
15:30 - 16:00 PANEL: Interledger routing challenges
16:00 - Close Planning for day 2
Agenda For Today (1 June)

4.
Interledger Project
KEY FACTS
Open Protocol Community Group @ W3C 220+ Contributors
Banks
Central banks
Payments companies
Tech giants
Consulting companies
Blockchain companies

5.
October 2015 Published the Interledger White Paper
November 2015 Launched Interledger Community Group at W3C
February 2016 First workshop in San Francisco (50+ attendees)
February 2016 First draft of Crypto-conditions RFC
March 2016 First draft of Architecture Overview (ILP - RFC 1)
June 2016 Re-launch of interledger.org website
July 2016 Second workshop in London (70+ attendees)
July 2016 IETF Berlin - BoF session
September 2017 W3C TPAC Lisbon - ILP Community Group meeting
October 2017 InterledgerJS launched at the JS Foundation
November 2017 ILP Kit v1 released
March 2017 ILP Address and Packet specs released
May 2017 ILP Kit v2 released
June 2017 Third workshop in Berlin
A Little History

6.
6
Interledger Workshop
LONDON 2016

7.
Interledger
Evan Schwartz
@_emschwartz
Internetworking for Money

8.
Payments are broken.

9.
Payment Methods Accepted By Prineta.com
Accepting Payments OnlineAccepting Payments Online

10.
Blockchain will
not solve the problem.

11.
Payment Networks Are Disconnected
BlockchainBanks Mobile Money Online Wallets

12.
We Need the Internet of
Money
Payments
Value
Blockchains
Coins

13.
Can We Connect Everything to One Blockchain?
? ?
? ?

14.
No.

15.
The World Will Never Agree On One Ledger

16.
We Need the Internet of
Money
Payments
Value
Blockchains
Coins

17.
internetworking

18.
in·ter·net·work·ing
Connecting networks through gateways that
route data packets between the networks
noun

19.
Internetworking Connects Everyone

20.
BlockchainBanks Mobile Money Online Wallets
Internetworking For Payment Networks

21.
Interledger
Internetworking for Money

22.
OUR INSPIRATION
The History & Architecture of the Internet

23.
SIMPLICITY

24.
Internet Architecture
IP
WIFI BLUETOOTH ETHERNET
Internetwork
Network
Transport TCP UDP
Application HTTP SMTP NNTP NTP RTP

25.
Interledger Architecture
ILP
BLOCKCHAINS
BANKS MOBILE MONEY
Interledger
Ledger
Transport IPR PSK PSK-ECDH
Application SPSP HTTP-ILP PAYTORRENT

26.
Interledger 101

27.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

28.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

29.
BlockchainBanks Mobile Money Online Wallets
Need a Way to Interact with Every Kind of Ledger

30.
All Ledgers Are Treated Equally

31.
IP Works Over Every Type of Network

32.
Stay Tuned for More on Ledger Plugins:
1. Demo Today @ 2pm
2. Plugin-athon Tomorrow

33.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

34.
Payments Within One Network Are Trivial
Sender ReceiverLedger

35.
Payments Across Ledgers
Sender ReceiverLedger Ledger
?

36.
Connectors Link Two Ledgers
Connector
EUR USD

37.
Connectors Exchange Currencies
Alice 100
Chloe 0
Chloe 107
Bob 0
EUR USD

38.
Connectors Generate Revenue from Spreads
Alice 100
Chloe 0
Chloe 107
Bob 0
EUR USD

39.
Payments Across Connectors?
EUR USD
?
BTC

40.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

41.
Multi-hop is trickier with
money than with data

42.
Correspondent Banking: Optimistic Execution
EXECUTE

43.
Correspondent Banking: Optimistic Execution
FAIL

44.
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

45.
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

46.
Conditional payments enable
trustless connectors

47.
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

48.
Interledger works even over
simple payment channels

49.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

50.
{
account: "g.us.usd.chase.bob.car",
amount: "10",
data: "SGVsbG8gV29ybGQhCg..."
}
Interledger In One Slide

51.
{
account: "g.crypto.bitcoin.1BvBMSEY...",
amount: "10",
data: "SGVsbG8gV29ybGQhCg..."
}
Interledger Addresses Work for Any Ledger

52.
Core of IP is the Address and Packet Formats

53.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

54.
Addressing is Separate From Routing
Please deliver to
g.crypto.bitcoin.1x... Right away!

55.
Interested in Routing? Come to the
Routing Discussion @ 3:30pm

56.
Internetworking Ingredients:
1. Ledger Abstraction
2. Routers
3. Multi-Hop
4. Address + Packet
5. Routing

57.
Internet of Value

58.
Interledger
Internetworking for Money

59.
Micropayments
Stefan Thomas
@justmoon
Small Payments Make a Big Difference

60.
The Internet Economy is Incomplete
10010110
???
DOWNLOADER UPLOADER
Today: Protocols Suffer from the Barter Problem

61.
Coincidence of Wants
There may be many people wanting,
and many possessing those things
wanted; but to allow of an act of barter,
there must be a double coincidence,
which will rarely happen.
- William S. Jevons, 1875
“

62.
So We Use Hacks to Get Around the Problem
10010110
DOWNLOADER UPLOADER
$$$
Hacks: Aggregation, Bartering, Bundling, ...

63.
Why Are You Getting 30% of Everyone's Revenue, Exactly?
Aggregation: Explosion of Marketplaces

64.
Tim Cook, CEO Apple
When an online service is free,
you're not the customer.
You're the product.

65.
Bundling: Annoying and Dangerous
66

66.
Users Are Opting Out
Source: PageFair/Adobe
Ad Blockers Rising

67.
Peer to Peer Model

68.
$$$
10010110
DOWNLOADER UPLOADER
Money: Solving the Barter Problem Since 5000 BC
Money Solves the Barter Problem

69.
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

70.
This used to be true for
information networks too

71.
"… biggest …"
"… more members …"
"… more services…"

72.
Internetworking commoditized reach

73.
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

74.
Sending Payment...
$1241.20 remaining; current speed: 13.2 $/s

75.
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

76.
The Internet Enabled Fundamentally New Business Models

77.
Internet — Cost vs Volume
SOURCES
Cisco
DrPeering

78.
$$$
Large (>10$), Slow (several seconds), Few in Number
Today: Humans Pay for Goods and Services
2017

79.
$$$
Payments in 2021: 100x Cheaper, 100x Smaller, but a Billion Times More Volume
Future: Humans Pay for Goods and Services
$$$
10010110
2017 2021

80.
We will move from
mobile-first to
AI-first.
Sundar Pichai, CEO Google

81.
87

82.
This Applies to Everything
Data is Transforming Every Industry and This Will Transform Data
● Artificial Intelligence
● Virtual Reality
● Drones
● Internet of Things
● Self-Driving Cars
● Mobile
● World Wide Web
● Stocks
Get Paid for Submitting Training Data
Pay for Premium Content Experience
Pay for Recharging
Devices Providing Services to Each Other
Trade Road Data; Pay for Transit Priority
Disrupt App Marketplaces
Gain a Sustainable Business Model
Settle Trades Across Exchanges

83.
Advertising and Marketplaces May Become Outdated Models
The Disrupter Becomes the Disruptee
1995-2016 2017-
?

84.
Nodes and Links
Michiel de Jong
@michielbdejong
On the Open Interledger

85.
Part 1: Nodes on the Interledger

86.
The first nodes:
FiveBellsLedger

87.
The first nodes:
FiveBellsLedger
+
ilp-connector

88.
The first nodes:
FiveBellsLedger
+
Ilp-connector
+
PluginVirtual

89.
FiveBellsLedger
is great for
Dial-up Nodes

90.
Ilp-kit servers
have become
Personal Nodes

91.
Connectors are the links between Ledgers

92.
Connectors are the links between Ledgers
FiveBellsLedger
FiveBellsLedger
Connector
Connector
Plugin
Virtual
Plugin
Virtual

93.
Connectors are the links between Ledgers
FiveBellsLedger
FiveBellsLedger
Connector
Connector
Plugin
Virtual
Plugin
Virtual

94.
Spring 2017: The Interledger Enlightenment

95.
Connectors are the links between Ledgers
Ledgers Connectors

96.
Ledgers are the links between Connectors
FiveBellsLedger
FiveBellsLedger
Connector
Connector
Plugin
Virtual
Plugin
Virtual

97.
Ledgers are the links between Connectors
FiveBellsLedger
FiveBellsLedger
Connector
Connector
PEER LEDGER

98.
ilp-kit:
Reference Node
Changes often
Personal Server
Version 2 live
Version 3 dev

99.
ilp-kit is like Lego

100.
Other Software:
Java (progress!)
ilp-node (early)

101.
Plugin land:
LPI spec
Peer ledgers
Group ledgers
Crypto ledgers

102.
PluginVirtual:
Each node’s API
Node-to-Node
RPC calls

103.
Core Node
Keep a full routing table

104.
Periphery Node
Ask upstream for a quote

105.
Node functions:
Receive a route
Forward transfer
Pass fulfillment
Respond quote
Balance check
Pass rejection
Fulfill SPSP
Initiate payment

106.
Server Hardening
Fend off unauthenticated requests
Detect peer gone nasty, and unpeer
Blame sender or receiver?

107.
ConnectorLand
Stats about personal nodes
A bit behind on its Q2 schedule!
Crypto
Crypto
Crypto
Crypto
Personal
Personal Personal
Personal

108.
Part 2: Links on the Interledger

109.
Who do you trust?
Each inbound peer vouches for its predecessors
Each outbound peer vouches for its successors

110.
Which ledger is inside your node?
Destination ledger for spsp
Hot wallets

111.
Which ledger is between two nodes?
Trustline
Payment channel

112.
How do nodes communicate?
Prepare fulfill reject
Routes Curves Quotes
On-ledger
Separate Comms networks
Using hubs

113.
How does a Link work?
Limits
Disputed balance
In-flight amount
Closing a ledger-backed channel
Proxying ledgers
Hashlocks inside payment channels

114.
Ledger Plugins
Ben Sharafian
@sharafian
Elements of Interledger

115.
Public Blockchains
Xe Et B Z

116.
Et Plugin Ethereum
Public Blockchains
Basic Ethereum integration

117.
Xe Plugin XRP
Public Blockchains
Using Escrow functionality on the XRP Ledger

118.
Central Ledgers
Fb Gh Pp Ap

119.
Gh Plugin Gatehub
Central Ledger
You'll hear more about this in a moment!

120.
Simple Channels
V Xp Ep Bp

121.
V Plugin Virtual
Basic Channels
Simplest possible ledger

122.
Xp XRP PayChan
Basic Channels
Only in-flight funds are at risk

123.
Et XeEthereum (Escrow) XRP (Escrow)
Lo' and Behold: Payment History
May 16, 2017

124.
Fb
Five Bells
Demonstrating Interledger

125.
Fb
V
Five Bells
Virtual

126.
Fb
V
Et
Five Bells Ethereum (Escrow)
Virtual

127.
Fb
V
Et
Xp
Five Bells Ethereum (Escrow)
Virtual XRP (PayChan)

128.
Fb
V
Et
Xp
Ch
Five Bells Ethereum (Escrow)
Virtual XRP (PayChan)
Chain

129.
Fb
V
Et
Xp
Ch
Five Bells Ethereum (Escrow)
Virtual XRP (PayChan)
Chain

130.
V
Et
Xp
Ch
Bp
Ethereum (Escrow)
Virtual XRP (PayChan)
Chain
Bitcoin (Payment Channels)

131.
V
Et
Xp
Ch
Bp
Xe
Ethereum (Escrow)
Virtual XRP (PayChan)
Chain XRP (Escrow)
Bitcoin (Payment Channels)

132.
LET'S WATCH THE REACTION!

133.
Simple Channels
V
Xp
Ep
Bp

134.
State Channels
V
Xp
Ep
Bp
Xb
R
Li

135.
Central Ledgers
V
Xp
Ep
Bp
Xb
R
Li
Fb Gh Pp Ap

136.
Private Blockchains
V
Xp
Ep
Bp
Xb
R
Li
Fb Gh Pp Ap Ch
H

137.
Public Blockchains
V
Xp Xb Ch Et
Xe
Ep R H B
Bp Li
Fb Gh Pp Ap
Z

138.
Periodic Table of Ledgers
V
Xp Xb Ch Et
Xe
Ep R H B
Bp Li
Fb Gh Pp Ap
Z

139.
Help Us Fill In The Blanks!
V
Xp Xb Ch Et
Xe
Ep R H B
Bp Li
Fb Gh Pp Ap
Z

140.
W3C Web Payments
Interledger in the browser
Adrian Hope-Bailie
@ahopebailie

141.
A payment API built into the browser
147
const methodData = [{
supportedMethods: ["basic-card"],
data: {
supportedNetworks: ["visa", "mastercard"]
}
}, {
supportedMethods: ["interledger"],
data: {
spspEndpoint: "http://example.com/spsp/?invoice=1234"
}
}];
const payment = new PaymentRequest(methodData, details, options);
let paymentResponse;
paymentResponse = await payment.show();
validateResponse(paymentResponse);
paymentResponse.complete("success");

142.
What does it look like
148

143.
● Payment Request - https://www.w3.org/TR/payment-request/
● Payment Method Identifiers - https://w3c.github.io/webpayments-method-identifiers/
● Payment Handler - https://w3c.github.io/payment-handler/
● Payment Methods
Basic Card - https://w3c.github.io/webpayments-methods-card/
Interledger - https://w3c.github.io/webpayments/proposals/interledger-payment-method.html
Tokenized Card -
Credit Transfers - https://w3c.github.io/webpayments-methods-credit-transfer-direct-debit/
Specifications

144.
Who’s involved
150