Introductory webinar on the Interledger Protocol: payments across payment networks

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

2. Payments Work Great!
2

3. Payments Work Great!*
* Within Each Payment System
3

4. So Let's Use One System for Everything?
4

5. But Different People Have Different Needs...
Micropayments
Bank-to-bank
settlement
5

6. But Different People Have Different Needs...
Maximum
Decentralization
Minimum
Latency
6

7. But Different People Have Different Needs...
Zero Inflation Zero Interest
7

8. …Served by Different Assets and Ledgers
8

9. How Do You Pay Across Ledgers?
???
9

10. There Are Lots of Ways
10

11. But No Standard
11

12. Why isn't it like the Internet?
12

13. Internet standards are about
relaying information
13

14. Can we relay money?
14

15. Ledgers Track Accounts and Balances
Sender RecipientLedger
15

16. But: Not Everyone Is on the Same Ledger
16

17. Connectors Relay Money
Connector
17

18. Connectors Relay Money
Connector
Alice 100
Chloe 0
Chloe 100
Bob 0
100 100
Payment vs. Payment
18

19. What if the connector drops it?
19

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
23

24. We use escrow and notaries
to provide atomicity
24

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
26

27. In the Preparation Phase,
the sender and connectors
escrow funds
27

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
30

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?
35

36. In the Universal mode,
transfer ordering ensures
payment is executed fully
36

37. Universal Payments
Alice 100
Escrow 0
Chloe 0
Chloe 100
Escrow 0
Bob 0
Same Setup
37

38. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Funds Are Escrowed By Sender and Connectors
38

39. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Recipient Signs Receipt
39

40. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 100
Bob 0
Recipient Receives Money
100
40

41. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
How Does Chloe Get Reimbursed?
41

42. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
Chloe Gets Receipt
42

43. Universal Payments
Alice 0
Escrow 100
Chloe 0
Chloe 0
Escrow 0
Bob 100
Chloe Passes the Receipt On
43

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
45

46. This enables money to be
securely relayed
46

47. Chained Payments
From Any Sender to Any Recipient
47

48. Risk-Free for Sender and Recipient
48

49. Limitlessly Scalable
Connectors and Ledgers Can Be Added to Handle More Payments
49

50. Connecting Disparate Systems
Minimal Standard to Link Banks, Cryptocurrencies, etc
50

51. Let’s Build the Internet of Value
51

52. Join the Interledger Community Group
Interledger.org
52