Interledger. Internetworking for Money. Evan Schwartz Engineer at Ripple Co-Inventor of Interledger

Transcription

1 Interledger Internetworking for Money Evan Schwartz Engineer at Ripple Co-Inventor of Interledger

2 Payments are broken.

3 Accepting Payments in a Turkish Starbucks

4 Accepting Payments OnlinePayments Online Accepting Payment Methods Accepted By Prineta.com

5 The World Will Never Agree On One Ledger

6 Payment Networks Are Disconnected Banks Blockchain Mobile Money Online Wallets 6

7 Information networks were disconnected too

8 Internet

9 in ter net work ing noun The interconnection of two or more networks so as to form a larger network.

10 How Do We Fix Payments? Banks Blockchain Mobile Money Online Wallets 10

11 Internetworking For Money Banks Blockchain Mobile Money Online Wallets 11

12 Interledger The protocol for connecting ledgers

13 Internetworking Ingredients: 1. Routers 2. Multi-Hop 3. Address + Packet 4. Routing Protocols

14 Internetworking Ingredients: 1. Routers 2. Multi-Hop 3. Address + Packet 4. Routing Protocols

15 Connectors Link Two Ledgers Connector EUR USD

16 Connectors Exchange Currencies EUR Alice Chloe USD Chloe Bob 107 0

17 Bilateral Connections Don't Scale 17

18 Bilateral Connections Don't Scale O(n2) 18

19 Bilateral Connections Don't Scale O(n2) 19

20 Networks Do Scale O(n) 20

21 But There Isn't Always A Direct Connection O(n) 21

22 We Need Multiple Hops O(n) 22

23 Internetworking Ingredients: 1. Routers 2. Multi-Hop 3. Address + Packet 4. Routing Protocols

24 Multi-hop is trickier with money than with data.

25 Correspondent Banking: Optimistic Execution EXECUTE

26 Correspondent Banking: Optimistic Execution FAIL

27 Interledger: Two-Phase Execution Secures Multi-Hop Transfers 1. PREPARE REFERENCES J. Poon and T. Drya, The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments, 2015 S. Thomas and E. Schwartz, A Protocol for Interledger Payments, 2015

28 Interledger: Two-Phase Execution Secures Multi-Hop Transfers 1. PREPARE 2. EXECUTE REFERENCES J. Poon and T. Drya, The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments, 2015 S. Thomas and E. Schwartz, A Protocol for Interledger Payments, 2015

29 Internetworking Ingredients: 1. Routers 2. Multi-Hop 3. Address + Packet 4. Routing Protocols

30 Interledger In One Slide { } destination_account: "us.usd.chase.bob.car" destination_amount: "5.99"

31 Internetworking Ingredients: 1. Routers 2. Multi-Hop 3. Address + Packet 4. Routing Protocols

32 Connectors Broadcast Rates to Populate Routing Tables { "ledger": "peer.-vcnd.eur.", "account": "peer.-vcnd.eur.krixgcbcbd...", "data": { "method": "broadcast_routes", "data": [{ "source_ledger": "peer.-vcnd.eur.", "destination_ledger": "peer.otnbf.usd.", "points": [ [0, 0], [ , ] ], "min_message_window": 1, "source_account": "peer.-vcnd.eur.y_luxphkay..." }] } }

33 OUR INSPIRATION The History & Architecture of the Internet

34 Internet Architecture Application HTTP SMTP NNTP NTP RTP Transport TCP UDP Internetwork Network IP WIFI BLUETOOTH ETHERNET

35 Interledger Architecture Application SPSP HTTP-ILP PAYTORRENT Transport SSP PRP Interledger ILP Ledger BITCOIN ETHEREUM RIPPLE

36 Interledger Internetworking for Money

37 DEMO Making an Interledger Payment

38 Broken payments are breaking the Web

39 When an online service is free, you're not the customer. You're the product. Tim Cook, CEO Apple 39

40

41 Few Can Convince People to Pay with Credit Cards

42 Marketplaces Collect Payments, Take Large Cut of Profits 42

43 Peer to Peer Model Needs a Neutral (Micro)Payment Protocol 43

44 Interledger Internetworking for Money

45 Internetworking increases connectivity and competition

46 Internetworking lowers costs to enable new use cases

47 Interledger Project KEY FACTS Banks Central banks Payments companies Tech giants Consulting companies Blockchain companies Open Protocol Community W3C 220+ Contributors

48 Help Us Connect the World's Ledgers! Banks Blockchain interledger.org Mobile Money Online 48

49 Find Me After to Get an Interledger Sticker Get Involved at Interledger.org And To Learn About Dial-Up Interledger