In the past trading between countries in different continents could not be possible due to so many reasons. Some of these reasons were because of restrictions that some countries, difference in currency, difficulty in payments for goods and services delivered. Most of these problems have been solved using different means. This article focuses on the method that was used to solve the difficulty in making international payments and the advantages of the method. Many methods were used to solve this problem of international payments. However, this article again majors on the interledger protocol as the method of international payments and its advantages. Inter-ledger protocol is a method of international payment that was recently developed. It is swift for it involves the use of software; since it is done electronically, it is one of the fastest means of payments available internationally. This method connects two difference ledger accounts and makes the payments simple and less prone to human error. There are several benefits of using inter-ledger protocol. This article, however, focuses on the major benefits that are discussed below.
The first merit of the inter-ledger protocol is that it is faster than other methods of international payments available. This method involves the use of software that will then transfer the money electronically once the two ledger accounts balance. Since this method is done electronically, it is very fast. This method also involves no intermediaries, which always make any process slow. In this process, money payments are made directly between the payers to the payee, no intermediaries.
The third advantage of using inter-protocol as a method of internal payments is that it is easy to detect and correct any human error made before payments are made. This process involves connecting two ledger accounts, and by the laws of the ledger, the ledger accounts should be balancing. Therefore, a payer's ledger account does not balance with the payee's ledger account, there must be a problem. This is easily detected and corrected, whether it was an error of omission or error of double entry.
These are the advantages that a business that has opted to the use of interledger protocol enjoys.
You can read also this related article -
https://www.huffpost.com/entry/your-ultimate-payment-gat_b_9329154
