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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

We study a random process over graphs inspired by the way payments are executed in the Lightning Network, the main layer-two solution on top of Bitcoin. We first prove almost tight upper and lower bounds on the time it takes for a payment…

Networking and Internet Architecture · Computer Science 2025-12-30 Taki E. M. Abedesselam , Fabio Giacomelli , Francesco Pasquale , Michele Salvi

Payment channels allow transactions between participants of the blockchain to be executed securely off-chain, and thus provide a promising solution for the scalability problem of popular blockchains. We study the online network design…

Data Structures and Algorithms · Computer Science 2019-08-02 Georgia Avarikioti , Kenan Besic , Yuyi Wang , Roger Wattenhofer

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

Most permissionless blockchain networks run on peer-to-peer (P2P) networks, which offer flexibility and decentralization at the expense of performance (e.g., network latency). Historically, this tradeoff has not been a bottleneck for most…

Cryptography and Security · Computer Science 2023-09-13 Weizhao Tang , Lucianna Kiffer , Giulia Fanti , Ari Juels

Blockchain is rapidly emerging as an important class of network application, with a unique set of trust, security and transparency properties. In a blockchain system, participants record and update the `server-side' state of an application…

Networking and Internet Architecture · Computer Science 2022-05-24 Yifan Mao , Shaileshh Bojja Venkatakrishnan

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

Consensus protocols are currently the bottlenecks that prevent blockchain systems from scaling. However, we argue that transaction execution is also important to the performance and security of blockchains. In other words, there are ample…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-07-15 Daniël Reijsbergen , Tien Tuan Anh Dinh

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

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

Decentralized blockchain platforms have enabled the secure exchange of crypto-assets without the intermediation of trusted authorities. To this purpose, these platforms rely on a peer-to-peer network of byzantine nodes, which…

Cryptography and Security · Computer Science 2023-06-22 Massimo Bartoletti , Letterio Galletta , Maurizio Murgia

Increasing popularity of trading digital assets can lead to significant delays in Blockchain networks when processing transactions. When transaction fees become miners' primary revenue, an imbalance in reward may lead to miners adopting…

Cryptography and Security · Computer Science 2023-04-03 Gerui Zhang , Xiongfei Zhao , Yain-Whar Si

Executing smart contracts is a compute and storage-intensive task, which currently dominates modern blockchain's performance. Given that computers are becoming increasingly multicore, concurrency is an attractive approach to improve…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-04-14 Yaron Hay , Roy Friedman

Decentralized crypto-currencies based on the blockchain architecture under-utilize available network bandwidth, making them unable to scale to thousands of transactions per second. We define the Blockclique architecture, that addresses this…

Cryptography and Security · Computer Science 2020-02-11 Sébastien Forestier , Damir Vodenicarevic , Adrien Laversanne-Finot

Although blockchain, the supporting technology of Bitcoin and various cryptocurrencies, has offered a potentially effective framework for numerous applications, it still suffers from the adverse affects of the impossibility triangle.…

Cryptography and Security · Computer Science 2020-11-03 Canran Wang , Netanel Raviv

The Lightning Network promises to alleviate Bitcoin's known scalability problems. The operation of such second layer approaches relies on the ability of participants to turn to the blockchain to claim funds at any time, which is assumed to…

Cryptography and Security · Computer Science 2020-08-28 Jona Harris , Aviv Zohar

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

Payment networks, also known as channels, are a most promising solution to the throughput problem of cryptocurrencies. In this paper we study the design of capital-efficient payment networks, offline as well as online variants. We want to…

Data Structures and Algorithms · Computer Science 2018-10-18 Georgia Avarikioti , Yuyi Wang , Roger Wattenhofer

Bitcoin is by far the most popular crypto-currency solution enabling peer-to-peer payments. Despite some studies highlighting the network does not provide full anonymity, it is still being heavily used for a wide variety of dubious…

Social and Information Networks · Computer Science 2019-12-30 Yining Hu , Suranga Seneviratne , Kanchana Thilakarathna , Kensuke Fukuda , Aruna Seneviratne

Payment channel networks (PCNs) have emerged as a scalability solution for blockchains built on the concept of a payment channel: a setting that allows two nodes to safely transact between themselves in high frequencies based on…

Systems and Control · Electrical Eng. & Systems 2021-04-01 Nikolaos Papadis , Leandros Tassiulas