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Bitcoin has emerged as a revolutionary payment system with its decentralized ledger concept; however it has significant problems such as high transaction fees and low throughput. Lightning Network (LN), which was introduced much later,…

Cryptography and Security · Computer Science 2023-07-21 Ahmet Kurt , Kemal Akkaya , Sabri Yilmaz , Suat Mercan , Omer Shlomovits , Enes Erdin

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

The Bitcoin Lightning Network (BLN) was launched in 2018 to scale up the number of transactions between Bitcoin owners. Although several contributions concerning the analysis of the BLN binary structure have recently appeared in the…

Physics and Society · Physics 2023-01-02 Jian-Hong Lin , Emiliano Marchese , Claudio J. Tessone , Tiziano Squartini

Payment channel networks, such as Bitcoin's Lightning Network, promise to improve the scalability of blockchain systems by processing the majority of transactions off-chain. Due to the design, the positioning of nodes in the network…

Networking and Internet Architecture · Computer Science 2021-02-19 Kimberly Lange , Elias Rohrer , Florian Tschorsch

The Lightning Network is the most widely used payment channel network (PCN) to date, making it an attractive attack surface for adversaries. In this paper, we analyze the Lightning Network's PCN topology and investigate its resilience…

Networking and Internet Architecture · Computer Science 2019-04-24 Elias Rohrer , Julian Malliaris , Florian Tschorsch

The Lightning Network is a scaling solution for Bitcoin that promises to enable rapid and private payment processing. In Lightning, multi-hop payments are secured by utilizing Hashed Time-Locked Contracts (HTLCs) and encrypted on the…

Networking and Internet Architecture · Computer Science 2020-06-23 Elias Rohrer , Florian Tschorsch

The Lightning Network (LN) is one of the most promising off-chain scaling solutions for Bitcoin, as it enables off-chain payments which are not subject to the well-known blockchain scalability limit. In this work, we introduce CLoTH, a…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-12-27 Marco Conoscenti , Antonio Vetrò , Juan Carlos De Martin , Federico Spini , Fabio Castaldo , Sebastiano Scròfina

Following in the footsteps of pioneer Bitcoin, many altcoins as well as coloured coins have been being developed and merchandised adopting blockchain as the core enabling technology. However, since interoperability and scalability, due to…

Cryptography and Security · Computer Science 2019-07-01 Mahdi H. Miraz , David C. Donald

Bitcoin's success as a cryptocurrency enabled it to penetrate into many daily life transactions. Its problems regarding the transaction fees and long validation times are addressed through an innovative concept called the Lightning Network…

Cryptography and Security · Computer Science 2021-09-22 Ahmet Kurt , Suat Mercan , Enes Erdin , Kemal Akkaya

The Lightning Network is a so-called second-layer technology built on top of the Bitcoin blockchain to provide "off-chain" fast payment channels between users, which means that not all transactions are settled and stored on the main…

Computers and Society · Computer Science 2019-12-10 Silvia Bartolucci , Fabio Caccioli , Pierpaolo Vivo

This paper presents a formal analysis of the Lightning Network as a monetary system structurally diverging from Bitcoin's base-layer settlement model. We demonstrate that under increasing transaction demand, BTC transaction fees rise…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-27 Craig Steven Wright

The Lightning Network, a payment channel network with a market cap of over 192M USD, is designed to resolve Bitcoin's scalability issues through fast off-chain transactions. There are multiple Lightning Network client implementations, all…

Cryptography and Security · Computer Science 2024-05-06 Ben Weintraub , Satwik Prabhu Kumble , Cristina Nita-Rotaru , Stefanie Roos

The Lightning Network (LN) has enjoyed rapid growth over recent years, and has become the most popular scaling solution for the Bitcoin blockchain. The security of the LN relies on the ability of the nodes to close a channel by settling…

Cryptography and Security · Computer Science 2024-03-21 Cosimo Sguanci , Anastasios Sidiropoulos

Payment channel networks like Bitcoin's Lightning network are an auspicious approach for realizing high transaction throughput and almost-instant confirmations in blockchain networks. However, the ability to successfully make payments in…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-11-27 Oguzhan Ersoy , Stefanie Roos , Zekeriya Erkin

Bitcoin blockchain faces the bitcoin scalability problem, for which bitcoin's blocks contain the transactions on the bitcoin network. The on-chain transaction processing capacity of the bitcoin network is limited by the average block…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-08-14 Changting Lin , Ning Ma , Xun Wang , Zhenguang Liu , Jianhai Chen , Shouling Ji

Off-chain transaction channels represent one of the leading techniques to scale the transaction throughput in cryptocurrencies. However, the economic effect of transaction channels on the system has not been explored much until now. We…

Cryptography and Security · Computer Science 2022-07-15 Simina Brânzei , Erel Segal-Halevi , Aviv Zohar

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

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

Cryptocurrencies are distributed systems that allow exchanges of native (and non-) tokens among participants. The complete historical bookkeeping and its wide availability opens up an unprecedented possibility, i.e. that of understanding…

Physics and Society · Physics 2020-12-02 Nicolò Vallarano , Claudio Tessone , Tiziano Squartini

Payment channel networks provide a fast and scalable solution to relay funds, acting as a second layer to slower and less scalable blockchain protocols. In this paper, we present an accessible, low-cost attack in which the attacker…

Cryptography and Security · Computer Science 2021-02-02 Ayelet Mizrahi , Aviv Zohar