Authors
Georgia Avarikioti, Gerrit Janssen, Yuyi Wang, Roger Wattenhofer
Publication date
2018
Conference
Data Privacy Management, Cryptocurrencies and Blockchain Technology: ESORICS 2018 International Workshops, DPM 2018 and CBT 2018, Barcelona, Spain, September 6-7, 2018, Proceedings 13
Pages
76-84
Publisher
Springer International Publishing
Description
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 transactions, we examine the optimal graph structure and fee assignment to maximize the PSP’s profit. A customer prefers to route transactions through the PSP’s network if the cheapest path from sender to receiver is financially interesting, i.e., if the path costs less than the blockchain fee. When the graph structure is a tree, and the PSP facilitates all transactions, the problem can be formulated as a linear program. For a path graph, we present a polynomial time algorithm to assign optimal fees. We also show that the star network, where the center is an additional node acting as an intermediary, is a near-optimal solution to the network design problem.
Total citations
201820192020202120222023258638
Scholar articles
G Avarikioti, G Janssen, Y Wang, R Wattenhofer - … : ESORICS 2018 International Workshops, DPM 2018 …, 2018