Internetwork Exchange Protocol (IEP)
Stable Credit networks are inherently closed, meaning credits can only be transferred from approved members. This is to ensure the trust of network participants and to promote collaboration between members. However, trade between distinct Stable Credit networks is possible via an Internetwork Exchange Protocol.
How it works
When a member from one Stable Credit network wants to use their credits to pay for the goods or services from a member of another network, this transaction would be facilitated via the IEP (Internetwork Exchange Protocol). Debt clearing between two networks is similar to debt clearing between two members within a single network. Like on the member level, each network is assigned a credit line that is used to track the network’s total imports to exports. A positive balance resembles imports while a credit balance resembles exports. Differing from the member level, each network has an export limit (credit limit) as well as an import limit (positive balance), both of which are dynamically set depending on network conditions. This enables networks to interact without having to trust each other’s credit policy or monetary integrity.