R2: Boosting Liquidity in Payment Channel Networks with Online Admission Control

Mahsa Bastankhah; Krishnendu Chatterjee; Mohammad Ali Maddah-Ali; Stefan Schmid; Jakub Svoboda; Michelle Yeo

doi:10.1007/978-3-031-47754-6_18

R2: Boosting Liquidity in Payment Channel Networks with Online Admission Control

Mahsa Bastankhah, Krishnendu Chatterjee, Mohammad Ali Maddah-Ali, Stefan Schmid, Jakub Svoboda, Michelle Yeo

Electrical and Computer Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

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 further transactions. In order to reap the full potential of PCNs, recharging and rebalancing mechanisms are required to provision channels, as well as an admission control logic to decide which transactions to reject in case capacity is insufficient. This paper presents a formal model of this optimisation problem. In particular, we consider an online algorithms perspective, where transactions arrive over time in an unpredictable manner. Our main contributions are competitive online algorithms which come with provable guarantees over time. We empirically evaluate our algorithms on randomly generated transactions to compare the average performance of our algorithms to our theoretical bounds. We also show how this model and approach differs from related problems in classic communication networks.

Original language	English (US)
Title of host publication	Financial Cryptography and Data Security - 27th International Conference, FC 2023, Revised Selected Papers
Editors	Foteini Baldimtsi, Christian Cachin
Publisher	Springer Science and Business Media Deutschland GmbH
Pages	309-325
Number of pages	17
ISBN (Print)	9783031477539
DOIs	https://doi.org/10.1007/978-3-031-47754-6_18
State	Published - 2024
Event	27th International Conference on Financial Cryptography and Data Security, FC 2023 - Bol, Croatia Duration: May 1 2023 → May 5 2023

Publication series

Name	Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume	13950
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Conference

Conference	27th International Conference on Financial Cryptography and Data Security, FC 2023
Country/Territory	Croatia
City	Bol
Period	5/1/23 → 5/5/23

Bibliographical note

Publisher Copyright:
© 2024, International Financial Cryptography Association.

Access

10.1007/978-3-031-47754-6_18

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Cite this

Bastankhah, M., Chatterjee, K., Maddah-Ali, M. A., Schmid, S., Svoboda, J., & Yeo, M. (2024). R2: Boosting Liquidity in Payment Channel Networks with Online Admission Control. In F. Baldimtsi, & C. Cachin (Eds.), Financial Cryptography and Data Security - 27th International Conference, FC 2023, Revised Selected Papers (pp. 309-325). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 13950). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-031-47754-6_18

R2: Boosting Liquidity in Payment Channel Networks with Online Admission Control. / Bastankhah, Mahsa; Chatterjee, Krishnendu; Maddah-Ali, Mohammad Ali et al.
Financial Cryptography and Data Security - 27th International Conference, FC 2023, Revised Selected Papers. ed. / Foteini Baldimtsi; Christian Cachin. Springer Science and Business Media Deutschland GmbH, 2024. p. 309-325 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 13950).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Bastankhah, M, Chatterjee, K, Maddah-Ali, MA, Schmid, S, Svoboda, J & Yeo, M 2024, R2: Boosting Liquidity in Payment Channel Networks with Online Admission Control. in F Baldimtsi & C Cachin (eds), Financial Cryptography and Data Security - 27th International Conference, FC 2023, Revised Selected Papers. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 13950, Springer Science and Business Media Deutschland GmbH, pp. 309-325, 27th International Conference on Financial Cryptography and Data Security, FC 2023, Bol, Croatia, 5/1/23. https://doi.org/10.1007/978-3-031-47754-6_18

Bastankhah M, Chatterjee K, Maddah-Ali MA, Schmid S, Svoboda J, Yeo M. R2: Boosting Liquidity in Payment Channel Networks with Online Admission Control. In Baldimtsi F, Cachin C, editors, Financial Cryptography and Data Security - 27th International Conference, FC 2023, Revised Selected Papers. Springer Science and Business Media Deutschland GmbH. 2024. p. 309-325. (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)). doi: 10.1007/978-3-031-47754-6_18

Bastankhah, Mahsa ; Chatterjee, Krishnendu ; Maddah-Ali, Mohammad Ali et al. / R2 : Boosting Liquidity in Payment Channel Networks with Online Admission Control. Financial Cryptography and Data Security - 27th International Conference, FC 2023, Revised Selected Papers. editor / Foteini Baldimtsi ; Christian Cachin. Springer Science and Business Media Deutschland GmbH, 2024. pp. 309-325 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)).

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