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Related papers: Continuous Credit Networks and Layer 2 Blockchains…

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In order to scale transaction rates for deployment across the global web, many cryptocurrencies have deployed so-called "Layer-2" networks of private payment channels. An idealized payment network behaves like a Credit Network, a model for…

Computer Science and Game Theory · Computer Science 2020-03-19 Geoffrey Ramseyer , Ashish Goel , David Mazieres

After the success of the Bitcoin blockchain, came several cryptocurrencies and blockchain solutions in the last decade. Nonetheless, Blockchain-based systems still suffer from low transaction rates and high transaction processing latencies,…

Cryptography and Security · Computer Science 2022-11-01 Ankit Gangwal , Haripriya Ravali Gangavalli , Apoorva Thirupathi

Cryptocurrency networks such as Bitcoin have emerged as a distributed alternative to traditional centralized financial transaction networks. However, there are major challenges in scaling up the throughput of such networks. Lightning…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-06-25 Sushil Mahavir Varma , Siva Theja Maguluri

While blockchains initially gained popularity in the realm of cryptocurrencies, their widespread adoption is expanding beyond conventional applications, driven by the imperative need for enhanced data security. Despite providing a secure…

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

Money transfer is an abstraction that realizes the core of cryptocurrencies. It has been shown that, contrary to common belief, money transfer in the presence of Byzantine faults can be implemented in asynchronous networks and does not…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-07-28 Oded Naor , Idit Keidar

Credit networks represent a way of modeling trust between entities in a network. Nodes in the network print their own currency and trust each other for a certain amount of each other's currency. This allows the network to serve as a…

Trading and Market Microstructure · Quantitative Finance 2012-02-21 Pranav Dandekar , Ashish Goel , Ramesh Govindan , Ian Post

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

Blockchain technology, with implications in the financial domain, offers data in the form of large-scale transaction networks. Analyzing transaction networks facilitates fraud detection, market analysis, and supports government regulation.…

Computational Engineering, Finance, and Science · Computer Science 2025-01-23 Junliang Luo , Xue Liu

Bitcoin rise has put blockchain technology into the mainstream, amplifying its potential and broad utility. While Bitcoin has become incredibly famous, its transaction rate has not match such a corresponding increase. It still takes…

Cryptography and Security · Computer Science 2024-06-21 Han Song , Zhongche Qu , Yihao Wei

The Bitcoin Lightning Network is a layer 2 protocol designed to facilitate fast and inexpensive Bitcoin transactions. It operates by establishing channels between users, where Bitcoin is locked and transactions are conducted off-chain until…

Cryptography and Security · Computer Science 2024-07-12 Rainer Feichtinger , Florian Grötschla , Lioba Heimbach , Roger Wattenhofer

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

The last decade has experienced a vast interest in Blockchain-based cryptocurrencies with a specific focus on the applications of this technology. However, slow confirmation times of transactions and unforeseeable high fees hamper their…

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

The Bitcoin Lightning Network is a Layer 2 payment protocol that addresses Bitcoin's scalability by facilitating quick and cost effective transactions through payment channels. This research explores the feasibility of using machine…

Machine Learning · Computer Science 2025-10-24 Vincent Davis , Emanuele Rossi , Vikash Singh

Blockchain and blockchain-inspired decentralized applications are on the rise thanks to their unique characteristics such as their decentralized nature, anonymity, and tamper-proof nature; however, blockchain transactions tend to experience…

Cryptography and Security · Computer Science 2026-04-08 Yi Lyu

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

Blockchain technology is ushering in another break-out year, the challenge of blockchain still remains to be solved. This paper analyzes the features of Bitcoin and Bitcoin-NG system based on blockchain, proposes an improved method of…

Cryptography and Security · Computer Science 2018-11-01 Jia Kan , Shangzhe Chen , Xin Huang

Credit networks rely on decentralized, pairwise trust relationships (channels) to exchange money or goods. Credit networks arise naturally in many financial systems, including the recent construct of payment channel networks in blockchain…

Social and Information Networks · Computer Science 2021-09-29 Vibhaalakshmi Sivaraman , Weizhao Tang , Shaileshh Bojja Venkatakrishnan , Giulia Fanti , Mohammad Alizadeh

With emergence of blockchain technologies and the associated cryptocurrencies, such as Bitcoin, understanding network dynamics behind Blockchain graphs has become a rapidly evolving research direction. Unlike other financial networks, such…

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

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
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