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Bitcoin has emerged as a revolutionary payment system with its decentralized ledger concept; however it has significant problems such as high transaction fees and low throughput. Lightning Network (LN), which was introduced much later,…

Cryptography and Security · Computer Science 2023-07-21 Ahmet Kurt , Kemal Akkaya , Sabri Yilmaz , Suat Mercan , Omer Shlomovits , Enes Erdin

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

The Lightning Network is the most widely used payment channel network (PCN) to date, making it an attractive attack surface for adversaries. In this paper, we analyze the Lightning Network's PCN topology and investigate its resilience…

Networking and Internet Architecture · Computer Science 2019-04-24 Elias Rohrer , Julian Malliaris , Florian Tschorsch

The Bitcoin Lightning Network (BLN) was launched in 2018 to scale up the number of transactions between Bitcoin owners. Although several contributions concerning the analysis of the BLN binary structure have recently appeared in the…

Physics and Society · Physics 2023-01-02 Jian-Hong Lin , Emiliano Marchese , Claudio J. Tessone , Tiziano Squartini

Blockchain offers a decentralized, immutable, transparent system of records. It offers a peer-to-peer network of nodes with no centralised governing entity making it unhackable and therefore, more secure than the traditional paper-based or…

Cryptography and Security · Computer Science 2019-11-27 Harsh Jot Singh , Abdelhakim Senhaji Hafid

Bitcoin's success as a cryptocurrency enabled it to penetrate into many daily life transactions. Its problems regarding the transaction fees and long validation times are addressed through an innovative concept called the Lightning Network…

Cryptography and Security · Computer Science 2021-09-22 Ahmet Kurt , Suat Mercan , Enes Erdin , Kemal Akkaya

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

Off-chain transaction networks can mitigate the scalability issues of today's trustless electronic cash systems such as Bitcoin. However, these peer-to-peer networks also introduce a new attack surface which is not well-understood today.…

Cryptography and Security · Computer Science 2019-09-17 Saar Tochner , Stefan Schmid , Aviv Zohar

Payment channels were introduced to solve various eminent cryptocurrency scalability issues. Multiple payment channels build a network on top of a blockchain, the so-called layer 2. In this work, we analyze payment networks through the lens…

Computer Science and Game Theory · Computer Science 2019-12-11 Zeta Avarikioti , Lioba Heimbach , Yuyi Wang , Roger Wattenhofer

Bitcoin is one of the cryptocurrencies that is gaining more popularity in recent years. Previous studies have shown that closing price alone is not enough to forecast stock market series. We introduce a new set of time series and…

Machine Learning · Computer Science 2025-04-28 Stefano Sossi-Rojas , Gissel Velarde , Damian Zieba

Lightning Network (LN) is designed to amend the scalability and privacy issues of Bitcoin. It's a payment channel network where Bitcoin transactions are issued off chain, onion routed through a private payment path with the aim to settle…

Cryptography and Security · Computer Science 2020-07-14 Ferenc Beres , Istvan Andras Seres , Andras A. Benczur

The dramatic adoption of Bitcoin and other cryptocurrencies in the USA has revolutionized the financial landscape and provided unprecedented investment and transaction efficiency opportunities. The prime objective of this research project…

To improve transaction rates, many cryptocurrencies have implemented so-called ''Layer-2'' transaction protocols, where payments are routed across networks of private payment channels. However, for a given transaction, not every network…

Data Structures and Algorithms · Computer Science 2020-06-30 Ashish Goel , Geoffrey Ramseyer

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

Cryptocurrencies are distributed systems that allow exchanges of native (and non-) tokens among participants. The complete historical bookkeeping and its wide availability opens up an unprecedented possibility, i.e. that of understanding…

Physics and Society · Physics 2020-12-02 Nicolò Vallarano , Claudio Tessone , Tiziano Squartini

Bitcoin has emerged as a revolutionary payment system with its decentralized ledger concept however it has significant problems such as high transaction fees and long confirmation times. Lightning Network (LN), which was introduced much…

Cryptography and Security · Computer Science 2021-05-31 Ahmet Kurt , Suat Mercan , Omer Shlomovits , Enes Erdin , Kemal Akkaya

The Lightning Network (LN) has emerged as a second-layer solution to Bitcoin's scalability challenges. The rise of Payment Channel Networks (PCNs) and their specific mechanisms incentivize individuals to join the network for profit-making…

Machine Learning · Computer Science 2024-11-27 Mahdi Salahshour , Amirahmad Shafiee , Mojtaba Tefagh

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

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

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