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Re: How do bank payments actually work?

From: Melvin Carvalho <melvincarvalho@gmail.com>
Date: Sat, 23 Jan 2016 11:55:06 +0100
Message-ID: <CAKaEYhKJR8dSPk8u=US4Mq21EiY0AKpr9oVAN6yvZZCZoYEC2Q@mail.gmail.com>
To: Adrian Hope-Bailie <adrian@hopebailie.com>
Cc: Stefan Thomas <stefan@ripple.com>, Jehan Tremback <jehan.tremback@gmail.com>, Audrius Ramoska <ramoska.audrius@gmail.com>, Interledger Community Group <public-interledger@w3.org>, Web Payments <public-webpayments@w3.org>
On 23 January 2016 at 11:41, Adrian Hope-Bailie <adrian@hopebailie.com>

> Melvin,
> That sounds like great progress.
> In principal ILP should allow any two ledgers to inter-operate through a
> connector that holds accounts on both.
> The only requirement is that both ledgers support escrow and conditional
> release.
> It's not essential that the interfaces to the ledgers are even the same as
> long as the connector is able to prepare and take the transaction through
> the various state changes on both. (i.e. As long as the connector
> understands both ledger's interfaces that's all that's required.)
> When you have a live ledger up let's try some interledger payments!

Makes sense.  My ledger is modular and insulated from the different
workflows.  I am going to implement lots of different workflows on top of
decentralized ledger technology.  What Im code naming "quantum payments"
right now.

Some will be trivially simple.

Many will model existing processes, such as ACH, classic block chain,
private block chains, gamification credits, ripple, ILP etc.  Based on
various use cases.

Each workflow should hopefully be a one line drop in command (like npm).
This will allow the setup of the testnet.  Also people can roll their own
workflows based on ideas they have, or built on top of the dependency
tree.  So lets say you want a Proof of stake + private chain + webDHT, this
should hopefully be a single like of code (perhaps ambitious, that's the
dream, anyway!) :)

I'll try and implement ILP on a testnet as close to what's described as

Then we can experiment with testing different things working together, and
see what works, and see what issues arise.

One thing I'd suggest is to leverage the bitcoin testnet to simulate
certain processes of settlement.  It's quite robust, has good tooling and
as the coins are worthless means there is reduced regulatory issues.

I've been playing around for 2-5 years with various formulations of this,
and I've reached a point where Im happy and can hopefully start to test.

> Adrian
> On 23 January 2016 at 08:53, Melvin Carvalho <melvincarvalho@gmail.com>
> wrote:
>> On 23 January 2016 at 04:51, Stefan Thomas <stefan@ripple.com> wrote:
>>> We're working on a public ILP-enabled test ledger instance for this
>>> group to play with. We just deployed the first version and are testing it
>>> internally. Give us some time to work through a first round of feedback,
>>> but we're excited to share it with you all soon.
>> Sounds great!  As it happens, I've been reading up on this design, this
>> week.
>> I think it may be nice, and also a good test, if my testnet and yours
>> could be shown to interoperate.
>> I agree in principle with the design goals of inter ledger, tho some
>> slight implementation details may differ.  I'd be prepared to write some
>> glue code, in order to try and make hetrogeneous ledgers be able to work
>> together ...
>> It would be quite interesting, imho, to see how hard it would be to get
>> two independently designed ledgers to cooperate.
>>> On Thu, Jan 21, 2016 at 11:06 AM, Jehan Tremback <
>>> jehan.tremback@gmail.com> wrote:
>>>> ILP has these advantages in theory. A testnet shows us how this stuff
>>>> works in practice. Not a bad thing to learn about.
>>>> -Jehan
>>>> On Thu, Jan 21, 2016 at 2:30 AM, Audrius Ramoska <
>>>> ramoska.audrius@gmail.com> wrote:
>>>>> Hello Melvin,
>>>>> I am curious what is the reason to simulate existing payment system
>>>>> and to play with it?
>>>>> ILP we started to work have key advantages comparing to existing inter
>>>>> ledger payments.
>>>>> Dedicated intermediate company, secure communication channels between
>>>>> banks and intermediate company, dedicated funds allocation... all that and
>>>>> more are disadvantages comparing to ILP we are working on. Inter country
>>>>> payment with such one intermediate company/solution become more complicated.
>>>>> In some countries business (not bank) could buy something like payment
>>>>> processing license. In such cases one intermediate company services loses
>>>>> advantages, payment environment for end customer become more complicated
>>>>> despite that competition pushing service price down.
>>>>> Distributed ILP approach at certain level solve all these problems.
>>>>> Regards,
>>>>> Audrius
>>>>> On 20 January 2016 at 23:03, Melvin Carvalho <
>>>>> melvincarvalho@gmail..com <melvincarvalho@gmail.com>> wrote:
>>>>>> Interesting post on the inter ledger element of banking.
>>>>>> https://getmondo.co.uk/blog/2016/01/20/how-do-bank-payments-work/
>>>>>> Im thinking of simulating this on a testnet for people to play around
Received on Saturday, 23 January 2016 10:55:36 UTC

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