ILP & Lightning

[squirrel]

Can someone describe in details what the ILP Lightning integration will look like - examples and possibilities. 

 

Also as per this article https://medium.com/interledger-blog/running-your-own-ilp-connector-c296a6dcf39a

it is said that there might be an opportunity for ILP nodes to earn from this integration, can someone explain this as well as my understanding was that no fee was charged by ILP nodes themselves.

“”We’re also working hard on bringing Lightning support to the network soon so there is likely to be a pretty lucrative opportunity, as a connector between XRP and BTC when that happens, so this is not just for goodwill either.””

[tulo]

19 minutes ago, squirrel said:

Can someone describe in details what the ILP Lightning integration will look like - examples and possibilities. 

It means that users will be able to send payments in BTC using XRP (or other currencies available on ILP) and vice versa in a seamless way via ILP.

20 minutes ago, squirrel said:

it is said that there might be an opportunity for ILP nodes to earn from this integration, can someone explain this as well as my understanding was that no fee was charged by ILP nodes themselves.

“”We’re also working hard on bringing Lightning support to the network soon so there is likely to be a pretty lucrative opportunity, as a connector between XRP and BTC when that happens, so this is not just for goodwill either.””

Basically a connector is a market maker. A connector cal place "offers" (or liquidity) for example accepting XRP for BTC at a fixed price and vice versa. As every market maker, ILP connectors can gain money from the spread of the bids and asks they provide and are used as liquidity.

 

But right now it is overcomplicated IMO to start an ILP connector. There are many unknown points for me now, as in Codius. So before doing something and put your money there I recommend to do your own deep research. 

[squirrel]

thanks for the reply.

 

Does it mean that a user will open up a Lightning payment channel with one ILP node to then be able to pay/receive payment from anyone else also connected through interledger ?

 

I agree there are some uncertainties. I am researching at the moment and I can’t find all the info. I was hoping for a detailed overview before I read the specs.

[mm34505]

I think this right here is the best news ever

"It means that users will be able to send payments in BTC using XRP (or other currencies available on ILP) and vice versa in a seamless way via ILP."  And its not just BTC it could be any asset

[tulo]

1 minute ago, squirrel said:

Does it mean that a user will open up a Lightning payment channel with one ILP node to then be able to pay/receive payment from anyone else also connected through interledger ?

Yeah. Basically if you become a BTC-XRP connector you'll have a Lighting account and an XRP account with PayChan. Using ILP, other user will be able to use the liquidity provided by you to send (almost) instant payments in XRP using BTC and vice versa.

If more cryptos or more ledgers are integrated into ILP, then more connectors can provide liquidity between different assets and basically send payments between all the currencies supported (multi hop also).

[XRPonTheIronThrone]

What are the ramifications for exchanges and the greater crypto market if pairs trading gets cannibalized with ILP?

[NightJanitor]

On 7/25/2018 at 8:40 AM, XRPonTheIronThrone said:

What are the ramifications for exchanges and the greater crypto market if pairs trading gets cannibalized with ILP?

About fifty bucks. (Per XRP.)

Nice name you go by, btw. :)

[at3n]

On 7/25/2018 at 3:40 PM, XRPonTheIronThrone said:

What are the ramifications for exchanges and the greater crypto market if pairs trading gets cannibalized with ILP?

Wouldn't exchanges be the perfect candidates for setting up ILP connectors?

Although, how do you deal with KYC/AML procedures if you're an ILP node? Can you refuse to deal with unknown customers?