Ride the Lightning: The Game Theory of Payment Channels
dc.contributor.author
Avarikioti, Zeta
dc.contributor.author
Heimbach, Lioba
dc.contributor.author
Wang, Yuyi
dc.contributor.author
Wattenhofer, Roger
dc.contributor.editor
Bonneau, Joseph
dc.contributor.editor
Heninger, Nadia
dc.date.accessioned
2020-08-28T12:08:46Z
dc.date.available
2020-08-25T10:28:15Z
dc.date.available
2020-08-28T12:08:46Z
dc.date.issued
2020
dc.identifier.isbn
978-3-030-51279-8
en_US
dc.identifier.isbn
978-3-030-51280-4
en_US
dc.identifier.issn
0302-9743
dc.identifier.issn
1611-3349
dc.identifier.other
10.1007/978-3-030-51280-4_15
en_US
dc.identifier.uri
http://hdl.handle.net/20.500.11850/432548
dc.description.abstract
Payment channels were introduced to solve various eminent cryptocurrency scalability issues. Multiple payment channels build a network on top of a blockchain, the so-called layer 2. In this work, we analyze payment networks through the lens of network creation games. We identify betweenness and closeness centrality as central concepts regarding payment networks. We study the topologies that emerge when players act selfishly and determine the parameter space in which they constitute a Nash equilibrium. Moreover, we determine the social optima depending on the correlation of betweenness and closeness centrality. When possible, we bound the price of anarchy. We also briefly discuss the price of stability.
en_US
dc.language.iso
en
en_US
dc.publisher
Springer
en_US
dc.subject
Blockchain
en_US
dc.subject
Creation game
en_US
dc.subject
Layer 2
en_US
dc.subject
Nash equilibrium
en_US
dc.subject
Network design
en_US
dc.subject
Payment channels
en_US
dc.subject
Price of anarchy
en_US
dc.subject
Price of stability
en_US
dc.title
Ride the Lightning: The Game Theory of Payment Channels
en_US
dc.type
Conference Paper
ethz.book.title
Financial Cryptography and Data Security
en_US
ethz.journal.title
Lecture Notes in Computer Science
ethz.journal.volume
12059
en_US
ethz.journal.abbreviated
LNCS
ethz.pages.start
264
en_US
ethz.pages.end
283
en_US
ethz.event
24th International Conference on Financial Cryptography and Data Security (FC 2020)
en_US
ethz.event.location
Kota Kinabalu, Malaysia
en_US
ethz.event.date
February 10-14, 2020
en_US
ethz.identifier.scopus
ethz.publication.place
Cham
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02140 - Dep. Inf.technologie und Elektrotechnik / Dep. of Inform.Technol. Electrical Eng.::02640 - Inst. f. Technische Informatik und Komm. / Computer Eng. and Networks Lab.::03604 - Wattenhofer, Roger / Wattenhofer, Roger
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02140 - Dep. Inf.technologie und Elektrotechnik / Dep. of Inform.Technol. Electrical Eng.::02640 - Inst. f. Technische Informatik und Komm. / Computer Eng. and Networks Lab.::03604 - Wattenhofer, Roger / Wattenhofer, Roger
en_US
ethz.date.deposited
2020-08-25T10:28:25Z
ethz.source
FORM
ethz.eth
yes
en_US
ethz.availability
Metadata only
en_US
ethz.rosetta.installDate
2020-08-28T12:08:59Z
ethz.rosetta.lastUpdated
2021-02-15T16:44:35Z
ethz.rosetta.versionExported
true
ethz.COinS
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Conference Paper [33086]