Interledger Peering, Clearing & Settling

12-Step Lifecycle: High-speed accounting vs. On-chain settlement.

ILP Packets (Clearing)
A

Alice's Connector

Debtor / Sender

Configuration (For Bob)

settlement_threshold: -$100
Debtor's risk level (triggers settlement to avoid being cut off)
settle_to: $0

Internal Ledger (Bob's Acct)

Balance: $0
B

Bob's Connector

Creditor / Receiver

Configuration (For Alice)

maximum_balance: $1000
Creditor's credit line extended to Debtor (protects against infinite debt)
settle_to: $0

Internal Ledger (Alice's Acct)

Balance: $0
Core Settlement Ledger
Slow, irrevocable on-chain transfers
$110