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Related papers: Building Stable Off-chain Payment Networks

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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

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

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

Payment networks were introduced to address the limitation on the transaction throughput of popular blockchains. To open a payment channel one has to publish a transaction on-chain and pay the appropriate transaction fee. A transaction can…

Computer Science and Game Theory · Computer Science 2019-08-06 Georgia Avarikioti , Rolf Scheuner , Roger Wattenhofer

Payment channels effectively move the transaction load off-chain thereby successfully addressing the inherent scalability problem most cryptocurrencies face. A major drawback of payment channels is the need to ``top up'' funds on-chain when…

Cryptography and Security · Computer Science 2021-10-19 Zeta Avarikioti , Krzysztof Pietrzak , Iosif Salem , Stefan Schmid , Samarth Tiwari , Michelle Yeo

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

Blockchain technology has revolutionized the way transactions are executed, but scalability remains a major challenge. Payment Channel Network (PCN), as a Layer-2 scaling solution, has been proposed to address this issue. However, skewed…

Cryptography and Security · Computer Science 2025-04-30 Minghui Xu , Wenxuan Yu , Guangyong Shang , Guangpeng Qi , Dongliang Duan , Shan Wang , Kun Li , Yue Zhang , Xiuzhen Cheng

While being decentralized, secure, and reliable, Bitcoin and many other blockchain-based cryptocurrencies suffer from scalability issues. One of the promising proposals to address this problem is off-chain payment channels. Since, not all…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-01-04 Soheil Zibakhsh Shabgahi , Seyed Mahdi Hosseini , Seyed Pooya Shariatpanahi , Behnam Bahrak

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

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 among the most promising solutions to the scalability issues in permissionless blockchains, by allowing parties to pay each other off-chain through a path of payment channels (PCs). However, routing…

Cryptography and Security · Computer Science 2024-05-10 Lukas Aumayr , Esra Ceylan , Yannik Kopyciok , Matteo Maffei , Pedro Moreno-Sanchez , Iosif Salem , Stefan Schmid

Payment channel networks (PCNs) are a promising approach to making cryptocurrency transactions faster and more scalable. At their core, PCNs bypass the blockchain by routing transactions through intermediary channels. However, a channel can…

Data Structures and Algorithms · Computer Science 2026-05-19 Marcin Bienkowski , Julien Dallot , Dominik Danelski , Maciej Pacut , Stefan Schmid

Blockchain has received increasing attention in academia and industry. However, the increasing transaction volumes and limited on-chain storage underscore scalability as a key challenge hindering the widespread adoption of blockchain.…

Cryptography and Security · Computer Science 2023-11-20 Xiaojie Wang , Hanxue Li , Ling Yi , Zhaolong Ning , Song Guo , Yan Zhang

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

For the enactment of inter-organizational business processes, blockchain can guarantee the enforcement of process models and the integrity of execution traces. However, existing solutions come with downsides regarding throughput…

Cryptography and Security · Computer Science 2025-03-28 Fabian Stiehle , Ingo Weber

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

Blockchain benefits are due to immutability, replication, and storage-and-execution of smart contracts on the blockchain. However, the benefits come at increased costs due to the blockchain size and execution. We address three fundamental…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-04 Christian Gang Liu

Cross-chain technology facilitates the interoperability among isolated blockchains on which users can freely communicate and transfer values. Existing cross-chain protocols suffer from the scalability problem when processing on-chain…

Cryptography and Security · Computer Science 2022-12-15 Yihao Guo , Minghui Xu , Dongxiao Yu , Yong Yu , Rajiv Ranjan , Xiuzhen Cheng

In cryptocurrencies, transaction fees are typically exclusively paid in the native platform currency. This restriction causes a wide range of challenges, such as deteriorated user experience, mandatory rent payments by decentralized…

Computers and Society · Computer Science 2020-04-20 István András Seres

We consider the execution of smart contracts on Bitcoin. There, every contract step corresponds to appending to the blockchain a new transaction that spends the output representing the old contract state, creating a new one for the updated…

Cryptography and Security · Computer Science 2025-06-05 Dario Maddaloni , Riccardo Marchesin , Roberto Zunino