Pricing for Routing and Flow-Control in Payment Channel Networks
Suryanarayana Sankagiri, Bruce Hajek
Workshop on MAthematical performance Modeling and Analysis (MAMA) at SIGMETRICS, 2024
Blockchains are decentralized digital transaction systems. Most blockchains today suffer from poor transaction throughput, resulting in exorbitant transaction fees and hindering widespread adoption. Layer-two blockchain mechanisms are tools that allow transactions to take place outside of the main blockchain system, thereby increasing the system’s throughput. A payment channel network (PCN) is one such mechanism that is used in practice. This paper focuses on their long-term transaction processing efficiency.