This document summarizes an introductory webinar on Interledger, a protocol for payments across different ledgers and systems. It explains that while payments work within individual systems, there is no standard for cross-system payments. Interledger addresses this using connectors that relay payments between ledgers in an atomic and secure way using escrow and notaries. This enables payments from any sender to any recipient across different ledgers, connecting disparate systems and building an "Internet of value".

1. Introductory Webinar
Interledger
Oct 20th • Evan Schwartz & Stefan Thomas
1

2. Payments Work Great!
2

3. Payments Work Great!*
* Within Each Payment System
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4. So Let's Use One System for Everything?
4

5. But Different People Have Different Needs...
Micropayments
Bank-to-bank
settlement
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6. But Different People Have Different Needs...
Maximum
Decentralization
Minimum
Latency
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7. But Different People Have Different Needs...
Zero Inflation Zero Interest
7

8. …Served by Different Assets and Ledgers
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9. How Do You Pay Across Ledgers?
???
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10. There Are Lots of Ways
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11. But No Standard
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12. Why isn't it like the Internet?
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13. Internet standards are about
relaying information
13

14. Can we relay money?
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15. Ledgers Track Accounts and Balances
Sender RecipientLedger
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16. But: Not Everyone Is on the Same Ledger
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17. Connectors Relay Money
Connector
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18. Connectors Relay Money
Connector
Alice 100
Chloe 0
Chloe 100
Bob 0
100 100
Payment vs. Payment
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19. What if the connector drops it?
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20. Money Would Be Lost
Alice 100
Chloe 0
Chloe 100
Bob 0
?
100
20

21. We need Atomicity
21

22. Either Both Transactions Execute...
Alice 100
Chloe 0
Chloe 100
Bob 0
100 100
22

23. ...Or Neither of Them Do
Alice 100
Chloe 0
Chloe 100
Bob 0
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24. We use escrow and notaries
to provide atomicity
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25. Atomic Payments
Alice 100
Escrow 0
Chloe 0
Chloe 100
Escrow 0
Bob 0
Ledger-Provided Escrow Protects Participants from Risk
25

26. Atomic Payments
Alice 100
Escrow 0
Chloe 0
Chloe 100
Escrow 0
Bob 0
Notaries Coordinate Transfers on Different Ledgers
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27. In the Preparation Phase,
the sender and connectors
escrow funds
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28. Atomic Payments
Alice 100
Escrow 0
Chloe 0
Chloe 100
Escrow 0
Bob 0
Preparation Phase
100
28

29. Atomic Payments
Alice 0
Escrow 100
Chloe 0
Chloe 100
Escrow 0
Bob 0
Preparation Phase
100
29

30. Atomic Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Preparation Phase
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31. In the Execution Phase,
a receipt from the recipient
unlocks escrowed funds
31

32. Atomic Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Recipient Signs Receipt Before a Timeout
32

33. Atomic Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Notaries Pass Receipt to Ledgers
100100
33

34. Atomic Payments
Alice 0
Escrow 0
Chloe 100
Chloe 0
Escrow 0
Bob 100
Payment is Completed
34

35. And without Notaries?
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36. In the Universal mode,
transfer ordering ensures
payment is executed fully
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37. Universal Payments
Alice 100
Escrow 0
Chloe 0
Chloe 100
Escrow 0
Bob 0
Same Setup
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38. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Funds Are Escrowed By Sender and Connectors
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39. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Recipient Signs Receipt
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40. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Recipient Receives Money
100
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41. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
How Does Chloe Get Reimbursed?
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42. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
Chloe Gets Receipt
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43. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
Chloe Passes the Receipt On
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44. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
Chloe Gets Paid
100
44

45. Universal Payments
Alice 0
Escrow 0
Chloe 100
Chloe 0
Escrow 0
Bob 100
Payment Is Complete
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46. This enables money to be
securely relayed
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47. Chained Payments
From Any Sender to Any Recipient
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48. Risk-Free for Sender and Recipient
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49. Limitlessly Scalable
Connectors and Ledgers Can Be Added to Handle More Payments
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50. Connecting Disparate Systems
Minimal Standard to Link Banks, Cryptocurrencies, etc
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51. Let’s Build the Internet of Value
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52. Join the Interledger Community Group
Interledger.org
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