Interledger Protocol Stack Deep Dive @ Boston Interledger Meetup
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The document provides a detailed overview of the Interledger Protocol (ILP) architecture, focusing on its layered structure and functionalities for payments across various ledgers and networks. It discusses the distinctions between hashed timelock contracts (HTLCs) and hashed timelock agreements (HTLAs), the features necessary for effective ledger integrations, and the evolution of the application layer. Additionally, it introduces the latest version of the protocol (ILPv4), which aims to facilitate seamless internetworking of value transfers.
Interledger Protocol Stack Deep Dive @ Boston Interledger Meetup
- 1. Interledger Protocol Stack Deep Dive Evan Schwartz Co-Inventor of Interledger @_emschwartz
- 2. Agenda 1. Internetworking Architecture 2. Ledger Integrations: HTLCs vs HTLAs 3. Interledger Protocol V4 4. Building on ILP: Transport & Application
- 4. The Internet Works the Same Over Ethernet, Fiber, Radio
- 5. IP Is So Network-Agnostic...
- 6. This is Why Protocols Designed for PDP-10s Work w/ iPhones
- 7. Internet Architecture IP PPP ETHERNET WIFI BLUETOOTH L3: Internetwork L2: Network L4: Transport TCP UDP QUIC L5: Application HTTP SMTP NNTP NTP RTP COPPER FIBER RADIO(L1: Physical)
- 8. Interledger Architecture ILP PAYMENT / STATE CHANNELS SIDECHAINS ... L3: Interledger L2 Network L4: Transport IPR PSK STREAM L5: Application SPSP HTTP-ILP PAYTORRENT BLOCKCHAINS CENTRAL LEDGERS(L1: Ledger)
- 9. Background Why layered protocol stacks?
- 10. Balancing Interoperability and Innovation More Standardization More Flexibility
- 11. Internet Architecture IP PPP ETHERNET WIFI BLUETOOTH L3: Internetwork L2: Network L4: Transport TCP UDP QUIC L5: Application HTTP SMTP NNTP NTP RTP COPPER FIBER RADIO(L1: Physical)
- 12. What features belong in each layer? ? ? L3: Interledger L2 Network L4: Transport ? L5: Application ? ?(L1: Ledger)
- 13. What interfaces should each layer provide to the others? ? ? L3: Interledger L2 Network L4: Transport ? L5: Application ? (L1: Ledger)
- 15. Optimistic Execution (Correspondent Banking Today) EXECUTE
- 16. Optimistic Execution (Correspondent Banking Today) FAIL
- 17. 1. PREPARE 2. EXECUTE Two-Phase Execution Secures Multi-Hop Transfers 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
- 18. 1. PREPARE Sender Cannot Lose Money If Packet Is Dropped
- 19. 1. PREPARE 2. EXECUTE Malicious Intermediaries Lose Funds If Response Is Dropped
- 21. Hashed Timelock Contract (HTLC): Ledger-Mediated
- 22. What if the ledger is too slow, expensive, or no HTLCs?
- 23. Hashed Timelock Agreements (HTLA) Are Purely P2P
- 24. HTLA: No Preimage → No Money
- 25. HTLA: Preimage → Money
- 26. HTLA: Preimage, No Money → No Future Business
- 27. HTLAs: Prepare, Fulfill, Settle, Repeat
- 28. What features are needed from ledgers (or Layer 2 networks)?
- 29. Layers 1 + 2 Ledger Integrations
- 30. There are a lot of blockchains out there!
- 31. Layer 2 Is a Hot Topic! ...And many more!
- 32. The Traditional Payment Space is Already Highly Fragmented
- 33. What features are common to all payment networks? What features can we expect?
- 34. Interledger.js Uses Plugins to Abstract Different Ledgers + L2s
- 35. Core Ledger Functions ● Send money ● Send data
- 36. Sending Data: BTP Uses Websockets for Secure P2P Comms
- 37. BTP 2.0 Is A Binary Request/Response Protocol
- 38. Sending Money: Settling HTLAs ?
- 39. What if the ledger is too slow or expensive?
- 40. Payment Channels Enable Fast, Free Settlement for HTLAs
- 41. XRP Ledger Payment Channels
- 42. Machinomy Library for ETH + ERC20 Payment Channels
- 43. Lightning Payments Used on Bitcoin
- 44. Payment channel plugins extend ilp-plugin-btp and ilp-plugin-mini-accounts
- 45. Plugins for on-ledger settlement extend ilp-plugin-payment
- 46. Layer 1 + 2 Must-Haves: ● Send data ● Send money Layer 1 + 2 Nice-To-Haves: ● Fast, Cheap Transfers OR ● (Unidirectional) Payment Channels ● Native Comms / Authentication
- 47. Layer 3 Interledger Protocol V4 (ILPv4)
- 50. ILPv4 Packet (Response, Error)
- 51. Example ILP Prepare Packet { "amount": "1000", "executionCondition": "3c36339587dbd93a815168c14478afcf3dcf77559c9ff0ca425b53317f32d56e", "expiresAt": "2018-05-22T19:41:20.724Z", "destination": "test.amundsen.bmp.btp18q1xrp.DZ3ec1t1idUwmt7e2uU82mUkmT2pKodAq-PRm4SoNlc.lo cal.0ttqOHeL_k9Hkdac-XFv4uyy-a3_Q6jbteIVU68ZIyY.ZQzhSKrtxjm10yuJQixQ9vct", "data": "a8bbf14d8331429627142fc19ad2e69ef7f3b45d576577ddd1027ec7ed43205e25ef6ff68a 76d2d26e6a7572cf5a7bc09952bfb7067d29f8edea1f17d42e41f36d1c4466b9d3f17cd54a 91ed55a0830702a36290ddad05e7bf41c5d61cac8ce9621e9f59a1dae637d23fcc1e648a99 497707d6a4a1ee85bb78a6b20550d9b99a9b14b9d4f51602c2bfacf9533a6d4c2c819faa6b 77d2592fc7dd75c5e522795e0f" }
- 52. Example ILP Fulfill Packet { "fulfillment": "c076b41108fa77c54a447e708f34c6d8114caec0b5a11df70ee31bcd99a4cb46", "data": "3f7cc52c5e93bbe6fd35571736c1089c0863fbfa21e6dbc945b4da7b077fde71c5d688c554 ae39226d7df7dde92c33d389335d09c4e1ea1ce3b9fe5a9a18275bc47c9c1cd0d30ea8403d " }
- 53. Example ILP Reject Packet { "code": "F99", "triggeredBy": "test.amundsen.bmp.btp18q1xrp.DZ3ec1t1idUwmt7e2uU82mUkmT2pKodAq-PRm4SoNlc.lo cal.0ttqOHeL_k9Hkdac-XFv4uyy-a3_Q6jbteIVU68ZIyY", "message": "", "data": "9e43eb8120564d3da393f80cc24d7f20b3144381c4d3cbc6c0679ab8b39fcba4b484fc50a0 497e24e2fb87e77ceb" }
- 54. ILP Addresses Are Hierarchical, Dot-Separated Strings
- 55. Questions Answered to Arrive At ILPv4 ● Crypto Conditions or SHA-256? ● Are conditions a ledger or Interledger concern? ● Address separator: dots, dashes, colons, >’s? ● Should packet include source address, options, QoS? ● Should packet include destination amount? ● Do we need a separate quoting protocol (ILQP?) ...and many more
- 56. Four People Spent A Full Day Debating Address Separators
- 57. ILPv4 is (arguably) the simplest possible protocol for internetworking value networks
- 59. Internet Architecture IP PPP ETHERNET WIFI BLUETOOTH L3: Internetwork L2: Network L4: Transport TCP UDP QUIC L5: Application HTTP SMTP NNTP NTP RTP COPPER FIBER RADIO(L1: Physical)
- 60. Transport layer provides helpful functionality needed by many applications
- 61. 1st Gen: Receiver-Generated Fulfillments
- 62. 2nd Gen: Sender-Generated Fulfillments
- 63. 3rd Gen: In-Protocol Quoting
- 64. 4th Gen: Quoting and Streaming
- 65. STREAM Client and Server Communicate Over ILP Client Server Interledger
- 66. STREAM Handles Bi-Directional Sending Client Server
- 67. STREAM Connections Consist of Multiple Logical Streams
- 68. STREAM Features
- 69. STREAM Packets Are Opaque to Intermediaries
- 70. STREAM Packets Are Composed of a Header + Frames
- 72. Application layer has undergone many iterations but more work to do using STREAM
- 73. Previously, Application Layer just meant connection setup
- 74. Application Layer Protocols To-Date ● Simple Payment Setup Protocol ● HTTP-ILP ● Codius Cog ● Web Monetization
- 75. Resolving Human-Readable IDs to ILP Addresses
- 76. Application Layer Features ● Connection setup (TLS over ILP?) ● Requests for payment? ● Pull payments (using tokens)? ● Signed receipts? ● HTTP over ILP? (Get involved in this development!)
- 77. BlockchainBanks Mobile Money Online Wallets Help shape the Interledger architecture! interledger.org @interledger