Interledger Overview // Luxembourg Center for Security, Reliability, and Trust Meetup

Interledger

Evan SchwartzCo-Inventor of InterledgerManaging Director of Ripple Luxembourg

Enabling the Internet of Value

Data Moves Freely

100110100110101100110100110101100110100110101

Why Doesn’t Money?

€€€€€ €€€

Accepting Payments In a Turkish Coffee Shop

Payment Methods Accepted By Prineta.com

Accepting Payments Online

Blockchains Are Not Interoperable

The World Will Never AgreeOn One Ledger

Payment Networks Are Disconnected

8

BlockchainBanks Mobile Money Online Wallets

RESULTFrustration for Consumers, Merchants and Corporates

You can email me atevan@ripple.com

even if you don’t use Gmail

You should be able to pay me atevan@my-ledger.com

even if you’re on a different ledger

InterledgerThe protocol for connecting ledgers

Let’s see it in action!

Interledger is not a blockchain

Interledger isnot a network

Interledger is an internetworking protocol

internetworking

in·ter·net·work·ingThe interconnection of two or more networks so as to form a larger network.

noun

Everywhere you want to be.

There are some things money can't buy.For everything else, there's MasterCard.

is what matters.

REACHIn global payments today,

This used to be true for information networks, too.

"… biggest …"

"… more members …"

"… more services…"

Internetworking commoditized reach.

America's fastest Internet.

Reliable. Safe. Fast.High-speed Internet from AT&T

Fast, reliable, unlimited Internet

COST

SPEEDNow, it's all about

RELIABILITY SIMPLICITY

COSTSPEED

Internetworking changes the game.

QUALITYREACH

Payment Networks Are Disconnected

27

BlockchainBanks Mobile Money Online Wallets

BlockchainBanks Mobile Money Online Wallets

28

Internetworking For Payment Networks

InterledgerThe protocol for connecting ledgers

Interledger provides:1. Connectors2. Address + Packet3. Security

Connectors Link Two Ledgers

Connector

Alice 100

Chloe 0

Chloe 107

Bob 0

EUR USD

TO:us.wf.bob

Connectors Use the Packet and Address to Route Payments

Sender Attaches Interledger Packet to Local Transfer

Alice 100

Chloe 0

Chloe 107

Bob 0100

us.wf.bob

107.00

Connector Forwards the Packet via Another Transfer

Alice 0

Chloe 100

Chloe 107

Bob 0

us.wf.bob

309.00

Paths Can Be Extended to Connect Everyone

This Is The Internet of Value

Interledger is inspired by thehistory and architecture

of the Internet

Internet Is A Simple Protocol With A Layered Architecture

IP

WIFI BLUETOOTH ETHERNET

Internetwork

Network

Transport TCP UDP

Application HTTP SMTP NNTP NTP RTP

Interledger Is A Simple Protocol With A Layered Architecture

ILP

CASH BANKS BLOCKCHAINMOBILE MONEY

Interledger

Ledger

Transport IPR SSP ...

Application SPSP PPSP RPSP...

The Internet: Just Cost Saving?

Removing Fixed Costs Enables Smaller Transactions

unviable viable viable

fixed cost

Transaction size

Cost

Transaction size

Cost

pre-internetworkingfixed costs price out long-tail use cases

post-internetworkingnew business models

become possible

The Internet Enabled Completely New Business Models

The Internet of Value is a game changer.

Interledger ProjectKEY FACTS

Open Protocol Community Group @ W3C 230+ Contributors

Banks

Central banks

Payments companies

Tech giants

Consulting companies

Blockchain companies

● Banks

● Central Banks

● Tech Companies

● Blockchains

Interledger Adoption

● Banks

● Central Banks

● Tech Companies

● Blockchains

Interledger Adoption

Sample of Ripple’s Customers

48

● Banks

● Central Banks

● Tech Companies

● Blockchains

Interledger Adoption

● Banks

● Central Banks

● Tech Companies

● Blockchains

Interledger Adoption

W3C Web Payments Working Group

W3C Web Payments Working Group

Adrian Hope-Bailie Nick Telford-Reed

● Banks

● Central Banks

● Tech Companies

● Blockchains

Interledger Adoption

Blockchain and ILP

Natively ILP-enabled

ILP compatible

● Banks

● Central Banks

● Tech Companies

● Blockchains

● You

Interledger Adoption

“Dial-Up” Interledger

ILP-EnablementAlso Known As The Right Way

Adoption To-DateStatus: Not Great

Protocols Have Humble BeginningsGotta Start Somewhere

Dial-Up Interledger

Dial-Up Interledger

Connector

Dial-Up Interledger

User Connector

Dial-Up Interledger

ACH, SEPA, PayPal, ...

User Connector

Dial-Up Interledger

Cash

User Connector

Separated Clearing & Settlement

Connect To Or Run An “ILP Kit”

Get Involved at Interledger.org

Get Involved at Interledger.org

Find Me After to Get anInterledger Sticker ;-)