How the Interledger Protocol aims to unite all digital currencies

By Daniel Zo Bitcoin, Interledger, Ripple, Stefan Tomas Read Comments

As you may already know, Bitcoin is not the only manner of sending digital money across the Internet. Some other options include Stellar, Ripple, Litecoin, and Ethereum alongside with many others.

While Bitcoin is by far the most popular option out of these, there is always a way of creating something better. An interesting idea has recently begun taking shape, and it aims to allow all these ledgers to talk to one another. To put things better into perspective, the platform would allow people to send money between the systems via the same protocol. This can be accomplished by creating a single worldwide network that can easily unite all digital currencies and their afferent networks, together with the actual cryptocurrency users. In technical terms, the platform builds a system where two ledgers can exchange money through something known as a third-party connector, or validator machine. However, thanks to cryptographic algorithms, an escrow of the funds is created, and the exchange is only made when both parties agree that the right sum is available, thus getting rid of trust issues. In the case of domestic transactions, ledgers participating also have the possibility of choosing domestic validators, which means that only the ledgers which are involved in the transaction can track it, thus hiding the particulars of the transaction from the validator.

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