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Payment channels are the most prominent solution to the blockchain scalability problem. We introduce the problem of network design with fees for payment channels from the perspective of a Payment Service Provider (PSP). Given a set of…

数据结构与算法 · 计算机科学 2018-10-18 Georgia Avarikioti , Gerrit Janssen , Yuyi Wang , Roger Wattenhofer

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…

网络与互联网体系结构 · 计算机科学 2026-03-10 Suryanarayana Sankagiri , Bruce Hajek

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…

数据结构与算法 · 计算机科学 2026-05-19 Marcin Bienkowski , Julien Dallot , Dominik Danelski , Maciej Pacut , Stefan Schmid

Most permissionless blockchain networks run on peer-to-peer (P2P) networks, which offer flexibility and decentralization at the expense of performance (e.g., network latency). Historically, this tradeoff has not been a bottleneck for most…

密码学与安全 · 计算机科学 2023-09-13 Weizhao Tang , Lucianna Kiffer , Giulia Fanti , Ari Juels

Off-chain transaction channels represent one of the leading techniques to scale the transaction throughput in cryptocurrencies such as Bitcoin. They allow multiple agents to route payments through one another. So far, the topology and…

计算机科学与博弈论 · 计算机科学 2020-07-28 Yotam Sali , Aviv Zohar

Cryptocurrencies redefined how money can be stored and transferred among users. However, independent of the amount being sent, public blockchain-based cryptocurrencies suffer from high transaction waiting times and fees. These drawbacks…

密码学与安全 · 计算机科学 2021-02-05 Enes Erdin , Suat Mercan , Kemal Akkaya

Payment channel networks (PCNs) are a promising solution to address blockchain scalability and throughput challenges, However, the security of PCNs and their vulnerability to attacks are not sufficiently studied. In this paper, we introduce…

密码学与安全 · 计算机科学 2025-06-24 Mohammed Ababneh , Kartick Kolachala , Roopa Vishwanathan

Payment channels allow transactions between participants of the blockchain to be executed securely off-chain, and thus provide a promising solution for the scalability problem of popular blockchains. We study the online network design…

数据结构与算法 · 计算机科学 2019-08-02 Georgia Avarikioti , Kenan Besic , Yuyi Wang , Roger Wattenhofer

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…

网络与互联网体系结构 · 计算机科学 2017-09-27 Elias Rohrer , Jann-Frederik Laß , Florian Tschorsch

This paper investigates how pricing schemes can achieve efficient allocations in blockchain systems featuring multiple transaction queues under a global capacity constraint. I model a capacity-constrained blockchain where users submit…

综合经济学 · 经济学 2025-02-26 Abdoulaye Ndiaye

Transaction fee plays an important role in determining the priority of transaction processing in public blockchain systems. Owing to the observability of unconfirmed transactions, a strategic user can postpone his transaction broadcasting…

计算机科学与博弈论 · 计算机科学 2025-12-29 Qianlan Bai , Yuedong Xu , Zhijian Zhou , Xin Wang

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…

密码学与安全 · 计算机科学 2025-04-30 Minghui Xu , Wenxuan Yu , Guangyong Shang , Guangpeng Qi , Dongliang Duan , Shan Wang , Kun Li , Yue Zhang , Xiuzhen Cheng

Payment channels networks drastically increase the throughput and hence scalability of blockchains by performing transactions \emph{off-chain}. In an off-chain payment, parties deposit coins in a channel and then perform transactions…

分布式、并行与集群计算 · 计算机科学 2020-12-21 Yuup van Engelshoven , Stefanie Roos

Payment channel networks like Bitcoin's Lightning network are an auspicious approach for realizing high transaction throughput and almost-instant confirmations in blockchain networks. However, the ability to successfully make payments in…

分布式、并行与集群计算 · 计算机科学 2019-11-27 Oguzhan Ersoy , Stefanie Roos , Zekeriya Erkin

Blockchain enables peer-to-peer transactions in cyberspace without a trusted third party. The rapid growth of Ethereum and smart contract blockchains generally calls for well-designed Transaction Fee Mechanisms (TFMs) to allocate limited…

综合经济学 · 经济学 2023-05-05 Luyao Zhang , Fan Zhang

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…

计算机科学与博弈论 · 计算机科学 2023-06-29 Zeta Avarikioti , Tomasz Lizurej , Tomasz Michalak , Michelle Yeo

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…

密码学与安全 · 计算机科学 2017-12-04 Andrew Miller , Iddo Bentov , Ranjit Kumaresan , Christopher Cordi , Patrick McCorry

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…

密码学与安全 · 计算机科学 2022-01-20 Philipp Zabka , Klaus-Tycho Foerster , Stefan Schmid , Christian Decker

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…

密码学与安全 · 计算机科学 2022-02-08 Subhra Mazumdar , Sushmita Ruj

Payment channel networks (PCNs) are one of the most prominent solutions to the limited transaction throughput of blockchains. Nevertheless, PCNs suffer themselves from a throughput limitation due to the capital constraints of their…

密码学与安全 · 计算机科学 2022-05-25 Samarth Tiwari , Michelle Yeo , Zeta Avarikioti , Iosif Salem , Krzysztof Pietrzak , Stefan Schmid