The Interledger Protocol enables the transfer of funds across payment networks by segmenting transactions into smaller packets, each with its own designated value.
The Interledger protocol (ILP) facilitates payments across two or more payment networks, aiming to enable direct transactions while also allowing for the involvement of intermediaries where necessary. It is a payment protocol fostering interoperability among diverse financial systems.
By seamlessly connecting ledgers from several institutions, the open-source Interledger protocol aims to streamline inter-bank transactions, reducing processing times and costs for participants. Like the internet routes information packets, Interledger operates as a network of computers that enables the transfer of value across separate payment networks.
