Foundations of Blockchain

Design of Interledger

Current payment systems provide a way to transfer value between different ledgers in the form of payment gateways. They act as an intermediary between the payment banks. The main concerns of existing systems are security and speed. The gateways are managed by the third parties, and users need to rely on those entities to ensure security. Transaction settlement in such a payment network is slower since the gateway has to deal with multiple payment banks. Interledger introduces connectors between the ledgers, which establish links between senders and receivers. The ledger in this system creates an escrow, which is the cryptographic conditions that will secure the funds when transacting across the ledgers. The cryptographic ...