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Blockchains such as Bitcoin and Ethereum execute payment transactions securely, but their performance is limited by the need for global consensus. Payment networks overcome this limitation through off-chain transactions. Instead of writing…

Cryptography and Security · Computer Science 2019-10-29 Joshua Lind , Oded Naor , Ittay Eyal , Florian Kelbert , Peter Pietzuch , Emin Gun Sirer

The payment channel, which allows two parties to perform micropayments without involving the blockchain, has become a promising proposal to improve the scalability of decentralized ledgers such as Bitcoin and Ethereum. Payment channels have…

Cryptography and Security · Computer Science 2019-12-02 YongJie Ye , Jingjing Zhang , Weigang Wu , Xiapu Luo , Jiannong Cao

Payment channel hub (PCH), by leveraging a powerful hub to reliably provide off-chain payment services, offers an effective enhancement to payment channel networks (PCNs). However, existing approaches typically rely on a single hub to relay…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-10-31 Lingxiao Yang , Xuewen Dong , Wei Wang , Yong Yu , Sheng Gao , Qiang Qu , Yulong Shen

Blockchain protocols are inherently limited in transaction throughput and latency. Recent efforts to address performance and scale blockchains have focused on off-chain payment channels. While such channels can achieve low latency and high…

Cryptography and Security · Computer Science 2017-03-09 Joshua Lind , Ittay Eyal , Peter Pietzuch , Emin Gün Sirer

To mitigate the scalability problem of decentralized cryptocurrencies such as Bitcoin and Ethereum, the payment channel, which allows two parties to perform secure coin transfers without involving the blockchain, has been proposed. The…

Cryptography and Security · Computer Science 2020-10-16 Yongjie Ye , Weigang Wu

Decentralized smart contracts enable trustless collaboration but suffer from limited privacy and scalability, which hinders broader adoption. Trusted Execution Environment (TEE) based off-chain execution frameworks offer a promising…

Cryptography and Security · Computer Science 2025-11-07 Keyu Zhang , Andrew Martin

The Bitcoin scalability problem has led to the development of off-chain financial mechanisms such as payment channel networks (PCNs) which help users process transactions of varying amounts, including micro-payment transactions, without…

Cryptography and Security · Computer Science 2023-11-30 Kartick Kolachala , Mohammed Ababneh , Roopa Vishwanathan

Smart contracts enable users to execute payments depending on complex program logic. Ethereum is the most notable example of a blockchain that supports smart contracts leveraged for countless applications including games, auctions and…

Cryptography and Security · Computer Science 2022-10-14 Tommaso Frassetto , Patrick Jauernig , David Koisser , David Kretzler , Benjamin Schlosser , Sebastian Faust , Ahmad-Reza Sadeghi

Payment protocols developed to realize off-chain transactions in Payment channel network (PCN) assumes the underlying routing algorithm transfers the payment via a single path. However, a path may not have sufficient capacity to route a…

Cryptography and Security · Computer Science 2022-02-08 Subhra Mazumdar , Sushmita Ruj

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

Blockchain ecosystems face a significant issue with liquidity fragmentation, as applications and assets are distributed across many public chains with each only accessible by subset of users. Cross-chain communication was designed to…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-04-07 Amin Rezaei , Solomon L. Davidson , Bernard Wong

Blockchain-based cryptocurrencies received a lot of attention recently for their applications in many domains. IoT domain is one of such applications, which can utilize cryptocur-rencies for micro payments without compromising their payment…

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

Path-based transaction (PBT) networks, which settle payments from one user to another via a path of intermediaries, are a growing area of research. They overcome the scalability and privacy issues in cryptocurrencies like Bitcoin and…

Cryptography and Security · Computer Science 2017-12-15 Stefanie Roos , Pedro Moreno-Sanchez , Aniket Kate , Ian Goldberg

A payment channel network is a blockchain-based overlay mechanism that allows parties to transact more efficiently than directly using the blockchain. These networks are composed of payment channels that carry transactions between pairs of…

Networking and Internet Architecture · Computer Science 2026-03-10 Suryanarayana Sankagiri , Bruce Hajek

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

Banking as an essential service can be hard to access in remote, rural regions where the network connectivity is intermittent. Although micro-banking has been made possible by SMS or USSD messages in some places, their security flaws and…

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

Decentralized marketplace applications demand fast, cheap and easy-to-use cryptocurrency payment mechanisms to facilitate high transaction volumes. The standard solution for off-chain payments, state channels, are optimized for frequent…

Cryptography and Security · Computer Science 2020-08-05 Madhumitha Harishankar , Dimitrios-Georgios Akestoridis , Sriram V. Iyer , Aron Laszka , Carlee Joe-Wong , Patrick Tague

Inspired by Bitcoin, many different kinds of cryptocurrencies based on blockchain technology have turned up on the market. Due to the special structure of the blockchain, it has been deemed impossible to directly trade between traditional…

Cryptography and Security · Computer Science 2020-05-08 Hangyu Tian , Kaiping Xue , Shaohua Li , Jie Xu , Jianqing Liu , Jun Zhao

Payment channel networks (PCN) are used in cryptocurrencies to enhance the performance and scalability of off-chain transactions. Except for opening and closing of a payment channel, no other transaction requests accepted by a PCN are…

Cryptography and Security · Computer Science 2020-02-13 Subhra Mazumdar , Sushmita Ruj , Ram Govind Singh , Arindam Pal
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