[Resource Topic] 2024/1393: Survivable Payment Channel Networks

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Title:
Survivable Payment Channel Networks

Authors: Yekaterina Podiatchev, Ariel Orda, Ori Rottenstreich

Abstract:

Payment channel networks (PCNs) are a leading method to scale the transaction throughput in cryptocurrencies. Two participants can use a bidirectional payment channel for making multiple mutual payments without committing them to the blockchain. Opening a payment channel is a slow operation that involves an on-chain transaction locking a certain amount of funds. These aspects limit the number of channels that can be opened or maintained. Users may route payments through a multi-hop path and thus avoid opening and maintaining a channel for each new destination. Unlike regular networks, in PCNs capacity depends on the usage patterns and, moreover, channels may become unidirectional. Since payments often fail due to channel depletion, a protection scheme to overcome failures is of interest. We define the stopping time of a payment channel as the time at which the channel becomes depleted. We analyze the mean stopping time of a channel as well as that of a network with a set of channels and examine the stopping time of channels in particular topologies. We then propose a scheme for optimizing the capacity distribution among the channels in order to increase the minimal stopping time in the network. We conduct experiments and demonstrate the accuracy of our model and the efficiency of the proposed optimization scheme.

ePrint: https://eprint.iacr.org/2024/1393

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