Thread by @krippenreiter

[1/🧵] I believe @bob_way has already gone way overboard with #ILP and all the complexities of explaining all that needs to be expressed. ❤️

Still, let me make a few remarks on the following topics 👇
• Infrastructure layers of #ILP
• #XRPL Payment Channels
• "Ledger Graphs"

https://twitter.com/briangrobertson/status/1635827483994910722

[2/17] — Infrastructure Layers of #Interledger —

When it comes to the most recent version of the open #ILPv4 suite in universal mode (high volume, low value payments), the layering is as follows:

1⃣ Application
2⃣ Transport
3⃣ Interledger (Core Layer)
4⃣ Link
5⃣ Ledger

[3/17] — 1⃣ Application Layer —

This is the suite's first layer, and it contains the following protocol:
➡️ #SPSP (Simple Payment Setup Protocol)

📝 This is for #identifiers, which are comparable to email addresses and are used to make addresses readable.

[4/17] — 2⃣ Transport Layer —

The 2nd layer includes the following protocols:
➡️ #PSK2 (Deprecated)
➡️ #STREAM (Successor)

📝 Takes care of #TX orders, ensuring or retransmitting them as needed, and is significantly influenced by #Google's #QUIC.

[5/17] — 3⃣ Interledger Layer —

The core protocol is included in the 3rd layer:
➡️ #ILPv4

📝 It's similar to well-known routing protocols like #BGP and #OSPF.
. . .

[6/17] . . .

The best path is determined based on a combination of parameters such as #fees, path length, #exchange (#FX) rates, and so on.
. . .

[7/17] . . .

This layer of the stack must be as lean and efficient as feasible ❗️

Never insert unnecessary concepts in this section.

As with #TCP/#IP, everything "complicated" can be placed on the #Application Layer.

[8/17] — 4⃣ Link Layer —

The following protocol is given here:
➡️ #BTP (Bilateral transfer protocol)

📝 The layer that sits between the #Interledger Layer and the underlying #DLT to handle #settlements and value transfers through #plugins.

[9/17] — 5⃣ Ledger Layer —

At the bottom, you'll find a list of all the #blockchains that may be compared to "#Ethernet" in #TCP/#IP terms.

📝 Layer that sits beneath the #Interledger Layer and is used to transmit actual #funds via methods such as #XRPL payment channels.

[10/17] — #Payment Channels —

"Payment Channels" is just an #XRPL feature.

It may be used on the open public #XRPL, any XRPL #sidechain, or even a private fork of #XRPL (#CBDC-ledger).

It may also be used as a plugin on the link layer in conjunction with #ILP.
. . .

[11/17] . . .

#Payment channels, in general, are a tool for conducting recurring unidirectional #payments or temporary #credit between two parties.
. . .

[12/17] . . .

Settlement takes place on the #payment channel (#paychan), which involves signing claims that are recorded on the #payment channel established between the two peers.
. . .

[13/17] . . .

The claims then address the transactions that occurred between the two peers as a result of altering the Bilateral Balance.

Further #ELI5 explanation may be found here:

https://twitter.com/krippenreiter/status/1607521951668637697?s=20

[14/17] — "Ledger Graphs" —

To help us comprehend what Bob meant by "Ledger Graphs," I especially enjoyed the definitions laid down on federated #sidechains.
. . .

[15/17] . . .

Consider these circles that are connected to each other having "doors," or "door accounts" that are set up on both ledgers to bridge the #sidechain and the #mainchain.

Bank A serves as the "door" between the ledgers involved. 🚪
. . .

https://twitter.com/krippenreiter/status/1617301187258105856?s=20

[16/17] . . .

To be clear, this appears to be deprecated, as witness servers have been introduced (#XLS38d).

I haven't had a chance to go over the proposal yet, so I'm afraid I can't comment further. 😅

No idea if that made it even more complicated. 🤞

[17/17] If this has helped anyone in any way, please do not hesitate to...

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