Interledger Protocol

Crypto terminology for Internal Audit encompasses key concepts, terms, and definitions essential for effectively assessing and managing risks in blockchain and cryptocurrency environments.

Interledger Protocol (ILP) is a set of tools and standards that enables different payment networks to interact with one another. It aims to allow seamless transactions across various ledgers, whether they are traditional banks, blockchain networks, or other payment systems.At its core, ILP breaks down payment transactions into smaller parts, allowing for quick and efficient transfers. When a user wants to send a payment from one currency to another, ILP finds the best route and facilitates the exchange without requiring the sender and receiver to be on the same ledger.One of the key benefits of ILP is the ability to enhance financial inclusion. It allows users to transact in different currencies without needing complex setups or intermediaries. As a result, it can help lower transaction costs and improve access to global markets for individuals and businesses alike.Overall, Interledger Protocol plays a pivotal role in creating a more interconnected financial landscape, allowing for smoother and faster exchanges across diverse platforms.

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