Ripple engineer Evan Schwartz, the Co-Creator of the InterLedger Protocol [ILP] and smart contract platform Codius, spoke at the CSAIL Initiative Launch Webcast recently. He elaborated upon the role that the InterLedger Protocol played in realizing the Internet of Value [IoV].
The Internet of Value is a vision for how payments work in unison so that moving value is as easy as moving information today. Schwartz spoke about the current state of affairs, and the difficulties faced today, stating:
“It’s really painful if you’re sending money we once heard a comment from a global banking executive saying that they could FedEx cash faster than they could send wire transfers around the world and with greater certainty.”
After speaking at length about Ripple’s progress towards providing frictionless payments, Schwartz began speaking about the ILP. The ILP is an interoperability protocol that allows for inter-networking between different ledgers, which includes traditional ledger system such as banking systems, existing payment providers such as Visa and MasterCard, and Distributed Ledger Technology such as the XRP Ledger.
Specifying the use-case scenario for the protocol, Schwartz stated:
“The biggest problem arguably today in payments is that the payment space is super fragmented. In every different country you have different regional payment methods, and if you go traveling there are certain payment methods that work around the world but many of them do not.”
He said that the fundamental problem is that these payment networks are disconnected from one another. This can be solved if payment networks are connected like the Internet, with providers being linked through a series of hops. Schwartz went on to provide a side-by-side comparison of the architecture of the Internet and the architecture of the InterLedger Protocol.
He referred to the hourglass architecture of the Internet, which is bound together by the Internet Protocol or IP. The sole function of IP is to send packets of data over networks, with its functioning allowing for specific applications on top of the universal infrastructure.
Schwartz then compared this to the architecture of InterLedger, wherein financial assets are transferred in packets. This then forms a similar underlying infrastructure, wherein different types of application protocols can be developed for various purposes. He stated:
“So the experience is I can send money as Bitcoin and you can receive it as whatever you want. Neither of us have to think about how that happens, it just happens in the stream of the payment the core of it.”
He mentioned that the simplicity of the protocol is an incentive for the widespread adoption by payment providers. Schwartz went on to speak about security offered by the ILP, saying that it cannot be worked using the optimistic execution method, which is how current payment providers work. He said:
“InterLedger uses a two-phase execution when the key part of this is that the sender is guaranteed that the money cannot get lost in the middle.”
Schwartz elaborated on the subject of using InterLedger Protocol to pay for content through micropayments. As the current space for micropayments online is fragmented, the ILP functions as a common protocol to enable this use case. He stated:
“You know, I go to the New York Times and they have a different service than a different website. [It’s] a pain for everyone so you need this kind of common protocol in order to enable these types of micropayment use cases.”
InterLedger Protocol offers a fine-grained system of dispensing payments across value silos, explained Schwartz. He even offered an example of paying for everyday purchases with increments of Apple stock. He went on to say:
“We talked about the idea of streaming payments, where if you make payments so efficient that you could pay for like a milliliter of beer or a second of video. That’s the way we think about efficiency of payments.”
Subscribe to AMBCrypto’s Newsletter
Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
Crypto News – 25 May – Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
— AMBCrypto (@CryptoAmb) 25 May 2019
Daily Crypto News – May 25
1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.
Read more at https://bit.ly/2VRQwb0
2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.
Read more at https://bit.ly/2W40sTR
3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.
Read more at https://bit.ly/2X6fdlw
4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.
Read more at https://bit.ly/2McaTjE
5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.
Read more at https://bit.ly/2wmk4mJ
6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.
Read more at https://bit.ly/2HUEnNB
7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.
Read more at https://bit.ly/2W64KKj
Subscribe to AMBCrypto’s Newsletter
Bitcoin [BTC]: Mati Greenspan claims ‘$200 move can easily lead to a $2,000 move’
Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC and LTC bulls defend position
Dubai-based exchange BitOasis allegedly delists Monero [XMR], ZCash [ZEC] without informing users
Kraken’s Austin Alexander says cryptocurrency space is ‘moving fast’, making it difficult for staffing
Kraken affirms that it pays some of its employees in Bitcoin [BTC]
Tron [TRX] announces future trading on OKEx platform from May 20
Bitcoin’s [BTC] Lightning Network is awesome, says Blockstream’s Samson Mow
Crypto is replacing the US Dollar and no one seems to be noticing, claims prominent investor Robert Kiyosaki
Bitcoin Cash’s [BCH] Roger Ver adds Coinbase and Binance to his ‘safe list’
Bittrex transfers 6,999,999 XRP to Upbit amid Ripple’s alleged report discrepancies
XRP: Massive amounts of cryptocurrency moved as Ripple, Nexo come into the picture
Bitcoin [BTC] is still going to $100,000, claims Heisenberg Capital’s Max Keiser
Satoshi Nakamoto is easy to get through; can be found by fools, claims John McAfee
XRP: Google Chrome extension to detect trustworthiness of select XRP addresses goes live