Streaming Payments and the Future of Interoperability, MIT Bitcoin Expo ‘18
Talk given by Evan Schwartz
Evan Schwartz is the co-inventor of the Interledger Protocol. He spoke on Day 2 of the MIT Bitcoin Expo.
Websites have multiple different payment methods
Common Question — Do you have Venmo? → Are we on the same payment network?
Payments at their core are disconnected.
banks !=<> blockchain !=<> mobile money
Architecture of the Internet
Fundamentally disconnected → the Internet Protocol (routing layer) connects the various networks (Wifi, Bluetooth, Ethernet) to the transport layer, then to the application layer
Interledger Protocol (ILP)
Applying the Internet’s design to enable streaming payments across every payment network
Architecture of Interledger
Bottom layer = systems of value = blockchains, banks, payment channels. Interledger connects various ledgers to the transport layer, then to the application layer
What ILP can do? Enable streaming payments
Subscription models
- At their core bundle up payments — its easy, convenient
- People with low usage ($$ more per use of service) are paying for people with high usage ($$ less per use of service)
- In reality subscription models are profiting off the discrepancy of people with high usage and people with low usage
Pay per use
*user experience needs to be good* for pay per use services
- When money is sent from network to network → really ILP packets are sent that create obligations which are settled afterwards
Simple payment channel update
- Person A sends Person B the packet through a connector
- Person B gives Person A the pre-image
- Person A signs a payment channel update
ILP Boston Community Meetup — https://www.meetup.com/Boston-Interledger/
Video Link — https://www.youtube.com/watch?v=xaNi1Blw6V0
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