Boosting Payment Channel Network Liquidity with Topology Optimization and Transaction Selection

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21240%2F25%3A00390071" target="_blank" >RIV/68407700:21240/25:00390071 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.4230/LIPIcs.DISC.2025.23" target="_blank" >https://doi.org/10.4230/LIPIcs.DISC.2025.23</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.4230/LIPIcs.DISC.2025.23" target="_blank" >10.4230/LIPIcs.DISC.2025.23</a>

Result language

angličtina

Original language name

Boosting Payment Channel Network Liquidity with Topology Optimization and Transaction Selection

Original language description

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 the transaction throughput in PCNs. Additionally, users in PCNs also have to make optimal decisions on which transactions to forward and which to reject to prolong the lifetime of their channels. In this work, we consider an input sequence of transactions over parties. Each transaction consists of a transaction size, source, and target, and can be either accepted or rejected (entailing a cost). The goal is to design a PCN topology among the cooperating parties, along with the channel capacities, and then output a decision for each transaction in the sequence to minimise the cost of creating and augmenting channels, as well as the cost of rejecting transactions. Our main contribution is an approximation algorithm for the problem with parties. We further show that with some assumptions on the distribution of transactions, we can reduce the approximation ratio to . We complement our theoretical analysis with an empirical study of our assumptions and approach in the context of the Lightning Network.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

10201 - Computer sciences, information science, bioinformathics (hardware development to be 2.2, social aspect to be 5.8)

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2025

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

39th International Symposium on Distributed Computing (DISC 2025)

ISBN

978-3-95977-402-4

ISSN

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e-ISSN

—

Number of pages

22

Pages from-to

"23:1"-"23:22"

Publisher name

Schloss Dagstuhl--Leibniz-Zentrum fuer Informatik

Place of publication

Dagstuhl

Event location

Ihnestr. 16-20 - 14195 Berlin

Event date

Oct 27, 2025

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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