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Related papers: Payment Network Design with Fees

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Payment channels networks drastically increase the throughput and hence scalability of blockchains by performing transactions \emph{off-chain}. In an off-chain payment, parties deposit coins in a channel and then perform transactions…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-12-21 Yuup van Engelshoven , Stefanie Roos

Decentralized marketplace applications demand fast, cheap and easy-to-use cryptocurrency payment mechanisms to facilitate high transaction volumes. The standard solution for off-chain payments, state channels, are optimized for frequent…

Cryptography and Security · Computer Science 2020-08-05 Madhumitha Harishankar , Dimitrios-Georgios Akestoridis , Sriram V. Iyer , Aron Laszka , Carlee Joe-Wong , Patrick Tague

Payment channel networks are a promising approach to improve the scalability of cryptocurrencies: they allow to perform transactions in a peer-to-peer fashion, along multi-hop routes in the network, without requiring consensus on the…

Networking and Internet Architecture · Computer Science 2021-04-12 Krzysztof Pietrzak , Iosif Salem , Stefan Schmid , Michelle Yeo

We introduce a family of PCNs (Payment Channel Networks) characterized by a semi-hierarchical topology and a custom set of channel rebalancing strategies. This family exhibits two interesting benefits, if used as a platform for large-scale,…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-12-18 Marco Benedetti , Francesco De Sclavis , Marco Favorito , Giuseppe Galano , Sara Giammusso , Antonio Muci , Matteo Nardelli

Payment channel networks are a highly discussed approach for improving scalability of cryptocurrencies such as Bitcoin. As they allow processing transactions off-chain, payment channel networks are referred to as second layer technology,…

Cryptography and Security · Computer Science 2020-10-19 Matthias Grundmann , Hannes Hartenstein

Blockchain technology has revolutionized the way transactions are executed, but scalability remains a major challenge. Payment Channel Network (PCN), as a Layer-2 scaling solution, has been proposed to address this issue. However, skewed…

Cryptography and Security · Computer Science 2025-04-30 Minghui Xu , Wenxuan Yu , Guangyong Shang , Guangpeng Qi , Dongliang Duan , Shan Wang , Kun Li , Yue Zhang , Xiuzhen Cheng

Blockchain has received increasing attention in academia and industry. However, the increasing transaction volumes and limited on-chain storage underscore scalability as a key challenge hindering the widespread adoption of blockchain.…

Cryptography and Security · Computer Science 2023-11-20 Xiaojie Wang , Hanxue Li , Ling Yi , Zhaolong Ning , Song Guo , Yan Zhang

Payment channels were introduced to solve various eminent cryptocurrency scalability issues. Multiple payment channels build a network on top of a blockchain, the so-called layer 2. In this work, we analyze payment networks through the lens…

Computer Science and Game Theory · Computer Science 2019-12-11 Zeta Avarikioti , Lioba Heimbach , Yuyi Wang , Roger Wattenhofer

While being decentralized, secure, and reliable, Bitcoin and many other blockchain-based cryptocurrencies suffer from scalability issues. One of the promising proposals to address this problem is off-chain payment channels. Since, not all…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-01-04 Soheil Zibakhsh Shabgahi , Seyed Mahdi Hosseini , Seyed Pooya Shariatpanahi , Behnam Bahrak

The Lightning Network, known for its millisecond settlement speeds and low transaction fees, offers a compelling alternative to traditional payment processors, which often have higher fees and longer processing times. This is particularly…

Cryptography and Security · Computer Science 2023-12-08 Jeffy Yu

Offchain networks emerge as a promising solution to address the scalability challenge of blockchain. Participants directly make payments through a network of payment channels without the overhead of committing onchain transactions. Routing…

Networking and Internet Architecture · Computer Science 2019-06-12 Peng Wang , Hong Xu , Xin Jin , Tao Wang

Payment channels effectively move the transaction load off-chain thereby successfully addressing the inherent scalability problem most cryptocurrencies face. A major drawback of payment channels is the need to ``top up'' funds on-chain when…

Cryptography and Security · Computer Science 2021-10-19 Zeta Avarikioti , Krzysztof Pietrzak , Iosif Salem , Stefan Schmid , Samarth Tiwari , Michelle Yeo

The Lightning Network (LN) is a prominent payment channel network aimed at addressing Bitcoin's scalability issues. Due to the privacy of channel balances, senders cannot reliably choose sufficiently liquid payment paths and resort to a…

Cryptography and Security · Computer Science 2021-03-16 Rene Pickhardt , Sergei Tikhomirov , Alex Biryukov , Mariusz Nowostawski

Payment channel networks use off-chain transactions to provide virtually arbitrary transaction rates. In this paper, we provide a new perspective on payment channels and consider them as a flow network. We propose an extended push-relabel…

Networking and Internet Architecture · Computer Science 2017-09-27 Elias Rohrer , Jann-Frederik Laß , Florian Tschorsch

Payment channel networks (PCNs) enhance the scalability of blockchains by allowing parties to conduct transactions off-chain, i.e, without broadcasting every transaction to all blockchain participants. To conduct transactions, a sender and…

Cryptography and Security · Computer Science 2022-08-05 Oğuzhan Ersoy , Jérémie Decouchant , Satwik Prabhu Kimble , Stefanie Roos

The revenue maximization problem of service provider is considered and different pricing schemes to solve the above problem are implemented. The service provider can choose an apt pricing scheme subjected to limited resources, if he knows…

Networking and Internet Architecture · Computer Science 2014-03-13 Aditya Goyal , Akanksha Tyagi , Manisha Bhende , Swapnil Kawade

Sharding is a promising technique for addressing the scalability issues of blockchain, and this technique is especially important for IoT, edge, or mobile computing. It divides the $n$ participating nodes into $s$ disjoint groups called…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-01-20 Ramesh Adhikari , Costas Busch , Miroslav Popovic

We study the network pricing problem where the leader maximizes their revenue by determining the optimal amounts of tolls to charge on a set of arcs, under the assumption that the followers will react rationally and choose the shortest…

Optimization and Control · Mathematics 2025-04-01 Quang Minh Bui , Bernard Gendron , Margarida Carvalho

As the killer application of blockchain technology, blockchain-based payments have attracted extensive attention ranging from hobbyists to corporates to regulatory bodies. Blockchain facilitates fast, secure, and cross-border payments…

Software Engineering · Computer Science 2021-08-19 Qinghua Lu , Xiwei Xu , H. M. N. Dilum Bandara , Shiping Chen , Liming Zhu

Payment channel networks (PCN) enable scalable blockchain transactions without fundamentally changing the underlying distributed ledger algorithm. However, routing a payment via multiple channels in a PCN requires locking collateral for…

Cryptography and Security · Computer Science 2021-09-09 Ben Weintraub , Cristina Nita-Rotaru , Stefanie Roos