What does Hyperledger Quilt implement to provide interoperability between ledger systems?

Hyperledger Quilt implements the Interledger Protocol (ILP) to provide interoperability between different ledger systems. ILP is designed to facilitate payments and the transfer of value across diverse blockchain networks and traditional financial systems. It allows for atomic swaps and the seamless movement of funds, even if the ledgers involved use different protocols. This makes Quilt an essential tool for connecting various blockchain ecosystems, enhancing interoperability in a multi-chain environment.

The focus on ILP is crucial because it addresses one of the primary challenges in blockchain technology: ensuring that different systems can communicate and transact with one another effectively. By employing the Interledger Protocol, Hyperledger Quilt enables diverse networks to interoperate, supporting a broader and more integrated financial ecosystem.