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

1. Interledger Update
Stefan Thomas
Web Payments IG // TPAC 2016

2. Payment Networks Are Disconnected
2
BlockchainACH Mobile Money Card Networks

3. BlockchainACH Mobile Money Card Networks
3
Internetworking For Payment Networks

4. How Does It Work?

5. Transferring Funds Across Networks
5
Sender RecipientLedger Ledger

6. Connectors Link Two Ledgers
Connector
Alice 100
Chloe 0
Chloe 110
Bob 0
100 110
6
EUR USD

7. Bilateral Connections Don't Scale
7

8. Bilateral Connections Don't Scale
8
O(n2
)

9. Networks Do Scale
9
O(n)

10. But There Isn't Always A Direct Connection
10
O(n)

11. We Need Multiple Hops
11
O(n)

12. TO:
us.wf.bob
First Step: Interledger Address

13. Sender Attaches Packet to Local Transfer
Alice 100
Chloe 0
Chloe 110
Bob 0
100
13
us.wf.bob
1023.20

14. Connector Forwards the Packet via Another Transfer
Alice 0
Chloe 100
Chloe 110
Bob 0
14
110
us.wf.bob
1023.20

15. If Connectors Fail, Would We Lose Money?
Alice 100
Chloe 0
Chloe 110
Bob 0
?
100
15

16. Ledgers Provide Hold Functionality
Alice 100
On Hold 0
Chloe 0
Chloe 110
On Hold 0
Bob 0
16

17. Holds Are Dependent on Conditions + Expiries
17
EXECUTEROLLBACK

18. Condition Fulfillment Executes Transfer
18
EXECUTEROLLBACK

19. Timeouts Cause Funds to Be Returned
19
EXECUTEROLLBACK

20. Sender Commits Funds
To Initiate Payment

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. 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. 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. 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. 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. Recipient Triggers Execution
By Fulfilling the Condition

27. Transfers Are Executed Right to Left
27
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 110
Bob 0
EXECUTION
? ?

28. Recipient Signs Receipt
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 110
Bob 0
28
? ?

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. How Does the Connector Get Reimbursed?
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 0
Bob 110
30
?
?

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. Connector Passes on the Recipient’s Signature
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 0
Bob 110
32
?

33. Receipt Releases Funds from Hold
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 0
Bob 110
33
100

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
COMMITMENT
Transfers Are Committed L2R, Executed R2L
EXECUTION

36. Making Something Useful
For Developers; Today

37. ILP-Enablement
Also Known As The Right Way

38. Adoption To-Date
Status: Not Great

39. Protocols Have Humble Beginnings
Gotta Start Somewhere

40. Participants Create A "Virtual" Ledger
40

41. And Settle Via An Underlying Settlement Ledger
41
ACH, SEPA, PayPal, ...

42. And Settle Via An Underlying Settlement Ledger
42