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Related papers: Congestion Attacks in Payment Channel Networks

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The Bitcoin Lightning Network, launched in 2018, serves as a layer 2 scaling solution for Bitcoin. The Lightning Network allows users to establish channels between each other and subsequently exchange off-chain payments. Together, these…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-09-25 Florian Grötschla , Lioba Heimbach , Severin Richner , Roger Wattenhofer

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

Payment channel is a protocol which allows cryptocurrency users to route multiple transactions through network without committing them to the main blockchain network (mainnet). This ability makes them the most prominent solution to…

Computer Science and Game Theory · Computer Science 2021-07-08 MohammadAmin Fazli , Seyed Moeen Nehzati , MohammadAmin Salarkia

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

Although blockchains have become widely popular for their use in cryptocurrencies, they are now becoming pervasive as more traditional applications adopt blockchain to ensure data security. Despite being a secured network, blockchains have…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-12-10 Faisal Haque Bappy , Tariqul Islam , Tarannum Shaila Zaman , Md Sajidul Islam Sajid , Mir Mehedi Ahsan Pritom

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

Off-chain transaction channels represent one of the leading techniques to scale the transaction throughput in cryptocurrencies such as Bitcoin. They allow multiple agents to route payments through one another. So far, the topology and…

Computer Science and Game Theory · Computer Science 2020-07-28 Yotam Sali , Aviv Zohar

Payment channel networks are an approach to improve the scalability of blockchain-based cryptocurrencies. The Lightning Network is a payment channel network built for Bitcoin that is already used in practice. Because the Lightning Network…

Cryptography and Security · Computer Science 2025-05-22 Matthias Grundmann , Hannes Hartenstein

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

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

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

Payment channel networks (PCNs) are a promising solution to the scalability problem of cryptocurrencies. Any two users connected by a payment channel in the network can theoretically send an unbounded number of instant, costless…

Computer Science and Game Theory · Computer Science 2023-06-29 Zeta Avarikioti , Tomasz Lizurej , Tomasz Michalak , Michelle Yeo

Cryptocurrency off-chain networks such as Lightning (e.g., Bitcoin) or Raiden (e.g., Ethereum) aim to increase the scalability of traditional on-chain transactions. To support nodes in learning about possible paths to route their…

Cryptography and Security · Computer Science 2020-03-03 Utz Nisslmueller , Klaus-Tycho Foerster , Stefan Schmid , Christian Decker

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) 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

Payment channel networks, and the Lightning Network in particular, seem to offer a solution to the lack of scalability and privacy offered by Bitcoin and other blockchain-based cryptocurrencies. Previous research has focused on the…

Cryptography and Security · Computer Science 2021-01-22 George Kappos , Haaroon Yousaf , Ania Piotrowska , Sanket Kanjalkar , Sergi Delgado-Segura , Andrew Miller , Sarah Meiklejohn

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

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

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

Payment channel networks are supposed to overcome technical scalability limitations of blockchain infrastructure by employing a special overlay network with fast payment confirmation and only sporadic settlement of netted transactions on…

Computational Engineering, Finance, and Science · Computer Science 2017-11-08 Felix Engelmann , Florian Glaser , Henning Kopp , Frank Kargl , Christof Weinhardt