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Related papers: Payment Network Design with Fees

200 papers

Cryptocurrencies redefined how money can be stored and transferred among users. However, independent of the amount being sent, public blockchain-based cryptocurrencies suffer from high transaction waiting times and fees. These drawbacks…

Cryptography and Security · Computer Science 2021-02-05 Enes Erdin , Suat Mercan , Kemal Akkaya

Despite growing adoption of cryptocurrencies, making fast payments at scale remains a challenge. Payment channel networks (PCNs) such as the Lightning Network have emerged as a viable scaling solution. However, completing payments on PCNs…

Networking and Internet Architecture · Computer Science 2020-03-24 Vibhaalakshmi Sivaraman , Shaileshh Bojja Venkatakrishnan , Kathy Ruan , Parimarjan Negi , Lei Yang , Radhika Mittal , Mohammad Alizadeh , Giulia Fanti

Bitcoin, Ethereum and other blockchain-based cryptocurrencies, as deployed today, cannot scale for wide-spread use. A leading approach for cryptocurrency scaling is a smart contract mechanism called a payment channel which enables two…

Cryptography and Security · Computer Science 2017-12-04 Andrew Miller , Iddo Bentov , Ranjit Kumaresan , Christopher Cordi , Patrick McCorry

A payment channel network is a blockchain-based overlay mechanism that allows parties to transact more efficiently than directly using the blockchain. These networks are composed of payment channels that carry transactions between pairs of…

Networking and Internet Architecture · Computer Science 2026-03-10 Suryanarayana Sankagiri , Bruce Hajek

As a promising implementation model of payment channel network (PCN), payment channel hub (PCH) could achieve high throughput by providing stable off-chain transactions through powerful hubs. However, existing PCH schemes assume hubs…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-06-01 Lingxiao Yang , Xuewen Dong , Sheng Gao , Qiang Qu , Xiaodong Zhang , Wensheng Tian , Yulong Shen

Payment channel networks (PCNs) are viewed as one of the most promising scalability solutions for cryptocurrencies today. Roughly, PCNs are networks where each node represents a user and each directed, weighted edge represents funds…

Cryptography and Security · Computer Science 2020-10-22 Weizhao Tang , Weina Wang , Giulia Fanti , Sewoong Oh

Payment channel networks (PCNs) such as the Lightning Network offer an appealing solution to the scalability problem faced by many cryptocurrencies operating on a blockchain such as Bitcoin. However, PCNs also inherit the stringent…

Cryptography and Security · Computer Science 2022-01-20 Philipp Zabka , Klaus-Tycho Foerster , Stefan Schmid , Christian Decker

Blockchain-based cryptocurrencies received a lot of attention recently for their applications in many domains. IoT domain is one of such applications, which can utilize cryptocur-rencies for micro payments without compromising their payment…

Cryptography and Security · Computer Science 2020-12-15 Suat Mercan , Enes Erdin , Kemal Akkaya

Payment channel networks (PCNs) have been designed and utilized to address the scalability challenge and throughput limitation of blockchains. Routing is a core problem of PCNs. An ideal PCN routing method needs to achieve 1) high…

Networking and Internet Architecture · Computer Science 2021-09-27 Xiaoxue Zhang , Shouqian Shi , Chen Qian

Payment channel networks (PCNs) are a promising approach to making cryptocurrency transactions faster and more scalable. At their core, PCNs bypass the blockchain by routing transactions through intermediary channels. However, a channel can…

Data Structures and Algorithms · Computer Science 2026-05-19 Marcin Bienkowski , Julien Dallot , Dominik Danelski , Maciej Pacut , Stefan Schmid

This paper studies the optimal transaction fee mechanisms for blockchains, focusing on the distinction between price-based ($\mathcal{P}$) and quantity-based ($\mathcal{Q}$) controls. By analyzing factors such as demand uncertainty,…

General Economics · Economics 2025-02-26 Abdoulaye Ndiaye

Payment channel networks (PCNs) are a promising solution to address blockchain scalability and throughput challenges, However, the security of PCNs and their vulnerability to attacks are not sufficiently studied. In this paper, we introduce…

Cryptography and Security · Computer Science 2025-06-24 Mohammed Ababneh , Kartick Kolachala , Roopa Vishwanathan

Micropayment channels are the most prominent solution to the limitation on transaction throughput in current blockchain systems. However, in practice channels are risky because participants have to be online constantly to avoid fraud, and…

Cryptography and Security · Computer Science 2018-12-03 Georgia Avarikioti , Felix Laufenberg , Jakub Sliwinski , Yuyi Wang , Roger Wattenhofer

Blockchain technology, while revolutionary in enabling decentralized transactions, faces scalability challenges as the ledger must be replicated across all nodes of the chain, limiting throughput and efficiency. Sharding, which divides the…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-05-09 Björn Assmann , Samuel J. Burri

Blockchains have block-size limits to ensure the entire cluster can keep up with the tip of the chain. These block-size limits are usually single-dimensional, but richer multidimensional constraints allow for greater throughput. The…

Computer Science and Game Theory · Computer Science 2025-04-23 Nir Lavee , Noam Nisan , Mallesh Pai , Max Resnick

Payment channel networks (PCNs) are a promising technology to improve the scalability of cryptocurrencies. PCNs, however, face the challenge that the frequent usage of certain routes may deplete channels in one direction, and hence prevent…

Data Structures and Algorithms · Computer Science 2022-09-27 Mahsa Bastankhah , Krishnendu Chatterjee , Mohammad Ali Maddah-Ali , Stefan Schmid , Jakub Svoboda , Michelle Yeo

Off-chain transaction networks can mitigate the scalability issues of today's trustless electronic cash systems such as Bitcoin. However, these peer-to-peer networks also introduce a new attack surface which is not well-understood today.…

Cryptography and Security · Computer Science 2019-09-17 Saar Tochner , Stefan Schmid , Aviv Zohar

In cryptocurrencies, transaction fees are typically exclusively paid in the native platform currency. This restriction causes a wide range of challenges, such as deteriorated user experience, mandatory rent payments by decentralized…

Computers and Society · Computer Science 2020-04-20 István András Seres

This paper investigates how pricing schemes can achieve efficient allocations in blockchain systems featuring multiple transaction queues under a global capacity constraint. I model a capacity-constrained blockchain where users submit…

General Economics · Economics 2025-02-26 Abdoulaye Ndiaye

The Bitcoin Lightning Network (LN) is designed to improve the scalability of blockchain systems by using off-chain payment paths to settle transactions in a faster, cheaper, and more private manner. This work aims to empirically study LN's…

Computer Science and Game Theory · Computer Science 2023-12-29 Andrea Carotti , Cosimo Sguanci , Anastasios Sidiropoulos