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How to Charge Lightning: The Economics of Bitcoin Transaction Channels. (arXiv:1712.10222v2 [cs.CR] UPDATED)
July 15, 2022, 1:20 a.m. | Simina Brânzei, Erel Segal-Halevi, Aviv Zohar
cs.CR updates on arXiv.org arxiv.org
Off-chain transaction channels represent one of the leading techniques to
scale the transaction throughput in cryptocurrencies. However, the economic
effect of transaction channels on the system has not been explored much until
now.
We study the economics of Bitcoin transaction channels, and present a
framework for an economic analysis of the lightning network and its effect on
transaction fees on the blockchain. Our framework allows us to reason about
different patterns of demand for transactions and different topologies of the …
More from arxiv.org / cs.CR updates on arXiv.org
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