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The Bitcoin Lightning Network (BLN), a so-called "second layer" payment protocol, was launched in 2018 to scale up the number of transactions between Bitcoin owners. In this paper, we analyse the structure of the BLN over a period of 18…

Physics and Society · Physics 2020-09-08 Jian-Hong Lin , Kevin Primicerio , Tiziano Squartini , Christian Decker , Claudio J. Tessone

Cryptocurrencies, based on and led by Bitcoin, have shown promise as infrastructure for pseudonymous online payments, cheap remittance, trustless digital asset exchange, and smart contracts. However, Bitcoin-derived blockchain protocols…

Cryptography and Security · Computer Science 2015-11-12 Ittay Eyal , Adem Efe Gencer , Emin Gun Sirer , Robbert van Renesse

Private blockchain networks are used by enterprises to manage decentralized processes without trusted mediators and without exposing their assets publicly on an open network like Ethereum. Yet external parties that cannot join such networks…

Cryptography and Security · Computer Science 2021-01-26 Dushyant Behl , Palanivel Kodeswaran , Venkatraman Ramakrishna , Sayandeep Sen , Dhinakaran Vinayagamurthy

Lightning Network (LN) is designed to amend the scalability and privacy issues of Bitcoin. It's a payment channel network where Bitcoin transactions are issued off chain, onion routed through a private payment path with the aim to settle…

Cryptography and Security · Computer Science 2020-07-14 Ferenc Beres , Istvan Andras Seres , Andras A. Benczur

Blockchains are significantly easing trade finance, with billions of dollars worth of assets being transacted daily. However, analyzing these networks remains challenging due to the sheer volume and complexity of the data. We introduce a…

Machine Learning · Computer Science 2024-05-07 Jason Zhu , Arijit Khan , Cuneyt Gurcan Akcora

Network topology plays a key role in many phenomena, from the spreading of diseases to that of financial crises. Whenever the whole structure of a network is unknown, one must resort to reconstruction methods that identify the least biased…

Data Analysis, Statistics and Probability · Physics 2015-06-09 Rossana Mastrandrea , Tiziano Squartini , Giorgio Fagiolo , Diego Garlaschelli

Today's world is organized based on merit and value. A single global currency that's decentralized is needed for a global economy. Bitcoin is a partial solution to this need, however it suffers from scalability problems which prevent it…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-10-29 Iurii Shyshatsky , Vinod Manoharan , Taras Emelyanenko , Lucas Leger

Payment channel networks (PCNs) are a promising technology that alleviates blockchain scalability by shifting the transaction load from the blockchain to the PCN. Nevertheless, the network topology has to be carefully designed to maximise…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-08-21 Krishnendu Chatterjee , Jan Matyáš Křišťan , Stefan Schmid , Jakub Svoboda , Michelle Yeo

Bitcoins have recently become an increasingly popular cryptocurrency through which users trade electronically and more anonymously than via traditional electronic transfers. Bitcoin's design keeps all transactions in a public ledger. The…

Cryptography and Security · Computer Science 2015-02-06 Michael Fleder , Michael S. Kester , Sudeep Pillai

The Bitcoin P2P network currently represents a reference benchmark for modern cryptocurrencies. Its underlying protocol defines how transactions and blocks are distributed through all participating nodes. To protect user privacy, the…

Cryptography and Security · Computer Science 2021-09-02 Federico Franzoni , Vanesa Daza

Bitcoin is a peer-to-peer distributed cryptocurrency system, that keeps all transaction history in a public ledger known as blockchain. The Bitcoin network is implicitly pseudoanonymous and its nodes are controlled by independent entities…

Determining the trust of an individual Bitcoin wallet is a difficult problem. There are no ratings, that offer vendors or exchanges meaningful information about the level of the taint of Bitcoins they are receiving. Lack of such information…

Cryptography and Security · Computer Science 2019-07-03 Uroš Hercog , Andraž Povše

Learning the structure of a network from time series data, in particular cyclostationary data, is of significant interest in many disciplines such as power grids, biology and finance. In this article, an algorithm is presented for…

Systems and Control · Computer Science 2019-09-20 Harish Doddi , Saurav Talukdar , Deepjyoti Deka , Murti Salapaka

The anonymity of the Bitcoin system has some shortcomings. Analysis of Transaction Chain (ATC) and Analysis of Bitcoin Protocol and Network (ABPN) are two important methods of deanonymizing bitcoin transactions. Nowadays, there are some…

Cryptography and Security · Computer Science 2015-09-22 QingChun ShenTu , JianPing Yu

One reason for the popularity of Bitcoin is due to its anonymity. Although several heuristics have been used to break the anonymity, new approaches are proposed to enhance its anonymity at the same time. One of them is the mixing service.…

Cryptography and Security · Computer Science 2021-03-03 Lei Wu , Yufeng Hu , Yajin Zhou , Haoyu Wang , Xiaopu Luo , Zhi Wang , Fan Zhang , Kui Ren

Multiple works have leveraged the public Bitcoin ledger to estimate the revenue cybercriminals obtain from their victims. Estimations focusing on the same target often do not agree, due to the use of different methodologies, seed addresses,…

Cryptography and Security · Computer Science 2023-11-29 Gibran Gomez , Kevin van Liebergen , Juan Caballero

In the cryptographic currency Bitcoin, all transactions are recorded in the blockchain - a public, global, and immutable ledger. Because transactions are public, Bitcoin and its users employ obfuscation to maintain a degree of financial…

Computers and Society · Computer Science 2017-06-30 Arvind Narayanan , Malte Möser

The Bitcoin network has offered a new way of securely performing financial transactions over the insecure network. Nevertheless, this ability comes with the cost of storing a large (distributed) ledger, which has become unsuitable for…

Cryptography and Security · Computer Science 2019-09-18 Duc V. Le , Lizzy Tengana Hurtado , Adil Ahmad , Mohsen Minaei , Byoungyoung Lee , Aniket Kate

This paper presents Wrapless -- a lending protocol that enables the collateralization of bitcoins without requiring a trusted wrapping mechanism. The protocol facilitates a "loan channel" on the Bitcoin blockchain, allowing bitcoins to be…

Blockchain technology and, in particular, blockchain-based transaction offers us information that has never been seen before in the financial world. In contrast to fiat currencies, transactions through virtual currencies like Bitcoin are…

Cryptography and Security · Computer Science 2021-04-21 Jinhuan Wang , Pengtao Chen , Shanqing Yu , Qi Xuan