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This paper presents a formal analysis of the Lightning Network as a monetary system structurally diverging from Bitcoin's base-layer settlement model. We demonstrate that under increasing transaction demand, BTC transaction fees rise…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-27 Craig Steven Wright

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

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

Bitcoin is undoubtedly a great alternative to today's existing digital payment systems. Even though Bitcoin's scalability has been debated for a long time, we see that it is no longer a concern thanks to its layer-2 solution Lightning…

Cryptography and Security · Computer Science 2023-05-01 Ahmet Kurt , Abdulhadi Sahin , Ricardo Harrilal-Parchment , Kemal Akkaya

Payment Channel Networks (PCNs) are a method for improving the scaling and latency of cryptocurrency transactions. For a payment to be made between two peers in a PCN, a feasible low-fee path in the network must be planned. Many PCN path…

Discrete Mathematics · Computer Science 2025-01-22 Padraig Corcoran , Rhyd Lewis

Making a payment in a privacy-aware payment channel network is achieved by trying several payment paths until one succeeds. With a large network, such as the Lightning Network, a completion of a single payment can take up to several…

Social and Information Networks · Computer Science 2019-12-23 Rene Pickhardt , Mariusz Nowostawski

Resource-constrained devices are unable to maintain a full copy of the Bitcoin Blockchain in memory. This paper proposes a bidirectional payment channel framework for IoT devices. This framework utilizes Bitcoin Lightning-Network-like…

Cryptography and Security · Computer Science 2018-12-27 Christopher Hannon , Dong Jin

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

It is now a whole year since Lightning Network (LN) has been launched on the Bitcoi's mainnet. LN has been claimed as the solution for several of Bitcoin's weaknesses such as its difficulty to scale in number of transactions per second and…

Cryptography and Security · Computer Science 2019-02-21 Stefano Martinazzi

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

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 Lightning Network (LN) is one of the most promising off-chain scaling solutions for Bitcoin, as it enables off-chain payments which are not subject to the well-known blockchain scalability limit. In this work, we introduce CLoTH, a…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-12-27 Marco Conoscenti , Antonio Vetrò , Juan Carlos De Martin , Federico Spini , Fabio Castaldo , Sebastiano Scròfina

The Lightning Network is a scaling solution for Bitcoin that promises to enable rapid and private payment processing. In Lightning, multi-hop payments are secured by utilizing Hashed Time-Locked Contracts (HTLCs) and encrypted on the…

Networking and Internet Architecture · Computer Science 2020-06-23 Elias Rohrer , Florian Tschorsch

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

Today, payment paths in Bitcoin's Lightning Network are found by searching for shortest paths on the fee graph. We enhance this approach in two dimensions. Firstly, we take into account the probability of a payment actually being possible…

Networking and Internet Architecture · Computer Science 2021-07-13 Rene Pickhardt , Stefan Richter

Every year, criminals launder billions of dollars acquired from serious felonies (e.g., terrorism, drug smuggling, or human trafficking) harming countless people and economies. Cryptocurrencies, in particular, have developed as a haven for…

Machine Learning · Computer Science 2021-10-06 Joana Lorenz , Maria Inês Silva , David Aparício , João Tiago Ascensão , Pedro Bizarro

Q&A websites rely on user-generated responses, with incentives such as reputation scores or monetary rewards often offered. While some users may find it intrinsically rewarding to assist others, studies indicate that payment can improve the…

Computers and Society · Computer Science 2024-12-30 Ellis Solaiman , Jorge Robins

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

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

Lightning Network (LN) addresses the scalability problem of Bitcoin by leveraging off-chain transactions. Nevertheless, it is not possible to run LN on resource-constrained IoT devices due to its storage, memory, and processing…

Cryptography and Security · Computer Science 2021-03-16 Ahmet Kurt , Suat Mercan , Enes Erdin , Kemal Akkaya