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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

Payment channel networks (PCNs) are a promising technology to improve the scalability of cryptocurrencies. PCNs, however, face the challenge that the frequent usage of certain routes may deplete channels in one direction, and hence prevent…

Data Structures and Algorithms · Computer Science 2022-09-27 Mahsa Bastankhah , Krishnendu Chatterjee , Mohammad Ali Maddah-Ali , Stefan Schmid , Jakub Svoboda , Michelle Yeo

The last decade has experienced a vast interest in Blockchain-based cryptocurrencies with a specific focus on the applications of this technology. However, slow confirmation times of transactions and unforeseeable high fees hamper their…

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

Payment channel is a class of techniques designed to solve the scalability problem of blockchain. By establishing channels off the blockchain to form payment channel networks (PCNs), users can make instant payments without interacting with…

Networking and Internet Architecture · Computer Science 2022-10-14 Wenhui Wang , Ke Mu , Xuetao Wei

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

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

Payment Channel Networks (PCNs) have been proposed as an alternative solution to the scalability, throughput, and cost overhead problems associated with blockchain transactions. By facilitating offchain execution of transactions, PCNs…

Cryptography and Security · Computer Science 2024-11-20 Kartick Kolachala , Mohammed Ababneh , Roopa Vishwanathan

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

We introduce a family of PCNs (Payment Channel Networks) characterized by a semi-hierarchical topology and a custom set of channel rebalancing strategies. This family exhibits two interesting benefits, if used as a platform for large-scale,…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-12-18 Marco Benedetti , Francesco De Sclavis , Marco Favorito , Giuseppe Galano , Sara Giammusso , Antonio Muci , Matteo Nardelli

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

Payment channel networks (PCNs) enhance the scalability of blockchains by allowing parties to conduct transactions off-chain, i.e, without broadcasting every transaction to all blockchain participants. To conduct transactions, a sender and…

Cryptography and Security · Computer Science 2022-08-05 Oğuzhan Ersoy , Jérémie Decouchant , Satwik Prabhu Kimble , Stefanie Roos

Blockchain technology, while revolutionary in enabling decentralized transactions, faces scalability challenges as the ledger must be replicated across all nodes of the chain, limiting throughput and efficiency. Sharding, which divides the…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-05-09 Björn Assmann , Samuel J. Burri

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

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

Public blockchains inherently offer low throughput and high latency, motivating off-chain scalability solutions such as Payment Channel Networks (PCNs). However, existing PCNs suffer from liquidity fragmentation-funds locked in one channel…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-12-15 Ayush Nainwal , Atharva Kamble , Nitin Awathare

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

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

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 Bitcoin Lightning Network is a Layer 2 payment protocol that addresses Bitcoin's scalability by facilitating quick and cost effective transactions through payment channels. This research explores the feasibility of using machine…

Machine Learning · Computer Science 2025-10-24 Vincent Davis , Emanuele Rossi , Vikash Singh

Despite growing adoption of cryptocurrencies, making fast payments at scale remains a challenge. Payment channel networks (PCNs) such as the Lightning Network have emerged as a viable scaling solution. However, completing payments on PCNs…

Networking and Internet Architecture · Computer Science 2020-03-24 Vibhaalakshmi Sivaraman , Shaileshh Bojja Venkatakrishnan , Kathy Ruan , Parimarjan Negi , Lei Yang , Radhika Mittal , Mohammad Alizadeh , Giulia Fanti
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