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Web Payments IG // TPAC 2016

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This is our standard pitch deck, but refreshed and streamlined. Plus it talks about our plans for developer adoption. More information to come!

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Web Payments IG // TPAC 2016

  1. 1. Interledger Update Stefan Thomas Web Payments IG // TPAC 2016
  2. 2. Payment Networks Are Disconnected 2 BlockchainACH Mobile Money Card Networks
  3. 3. BlockchainACH Mobile Money Card Networks 3 Internetworking For Payment Networks
  4. 4. How Does It Work?
  5. 5. Transferring Funds Across Networks 5 Sender RecipientLedger Ledger
  6. 6. Connectors Link Two Ledgers Connector Alice 100 Chloe 0 Chloe 110 Bob 0 100 110 6 EUR USD
  7. 7. Bilateral Connections Don't Scale 7
  8. 8. Bilateral Connections Don't Scale 8 O(n2 )
  9. 9. Networks Do Scale 9 O(n)
  10. 10. But There Isn't Always A Direct Connection 10 O(n)
  11. 11. We Need Multiple Hops 11 O(n)
  12. 12. TO: us.wf.bob First Step: Interledger Address
  13. 13. Sender Attaches Packet to Local Transfer Alice 100 Chloe 0 Chloe 110 Bob 0 100 13 us.wf.bob 1023.20
  14. 14. Connector Forwards the Packet via Another Transfer Alice 0 Chloe 100 Chloe 110 Bob 0 14 110 us.wf.bob 1023.20
  15. 15. If Connectors Fail, Would We Lose Money? Alice 100 Chloe 0 Chloe 110 Bob 0 ? 100 15
  16. 16. Ledgers Provide Hold Functionality Alice 100 On Hold 0 Chloe 0 Chloe 110 On Hold 0 Bob 0 16
  17. 17. Holds Are Dependent on Conditions + Expiries 17 EXECUTEROLLBACK
  18. 18. Condition Fulfillment Executes Transfer 18 EXECUTEROLLBACK
  19. 19. Timeouts Cause Funds to Be Returned 19 EXECUTEROLLBACK
  20. 20. Sender Commits Funds To Initiate Payment
  21. 21. Funds Are Committed From Left to Right 21 Alice 100 On Hold 0 Chloe 0 Chloe 110 On Hold 0 Bob 0 COMMITMENT
  22. 22. Sender Puts Funds On Hold Alice 100 On Hold 0 Chloe 0 Chloe 110 On Hold 0 Bob 0 100 22 us.wf.bob 1023.20
  23. 23. Connector Gets Notification of Funds on Hold Alice 0 On Hold 100 Chloe 0 Chloe 110 On Hold 0 Bob 0 23 ? us.wf.bob 1023.20
  24. 24. Connector Puts Funds on Hold Alice 0 On Hold 100 Chloe 0 Chloe 110 On Hold 0 Bob 0 24 110 ? us.wf.bob 1023.20
  25. 25. Recipient Gets Notification of Funds on Hold Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 110 Bob 0 25 ? ? us.wf.bob 1023.20
  26. 26. Recipient Triggers Execution By Fulfilling the Condition
  27. 27. Transfers Are Executed Right to Left 27 Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 110 Bob 0 EXECUTION ? ?
  28. 28. Recipient Signs Receipt Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 110 Bob 0 28 ? ?
  29. 29. Signature Fulfills Condition, Ledger Releases Held Funds Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 110 Bob 0 110 29 ?
  30. 30. How Does the Connector Get Reimbursed? Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 0 Bob 110 30 ? ?
  31. 31. Connector is Notified That Funds Have Been Released Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 0 Bob 110 31 ?
  32. 32. Connector Passes on the Recipient’s Signature Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 0 Bob 110 32 ?
  33. 33. Receipt Releases Funds from Hold Alice 0 On Hold 100 Chloe 0 Chloe 0 On Hold 0 Bob 110 33 100
  34. 34. Sender Gets Non-Repudiable Proof of Payment Alice 0 On Hold 0 Chloe 100 Chloe 0 On Hold 0 Bob 110 34
  35. 35. 35 COMMITMENT Transfers Are Committed L2R, Executed R2L EXECUTION
  36. 36. Making Something Useful For Developers; Today
  37. 37. ILP-Enablement Also Known As The Right Way
  38. 38. Adoption To-Date Status: Not Great
  39. 39. Protocols Have Humble Beginnings Gotta Start Somewhere
  40. 40. Participants Create A "Virtual" Ledger 40
  41. 41. And Settle Via An Underlying Settlement Ledger 41 ACH, SEPA, PayPal, ...
  42. 42. And Settle Via An Underlying Settlement Ledger 42

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