Scaling the transaction throughput of decentralized blockchain ledgers such as Bitcoin and Ethereum has been an ongoing challenge. Two-party duplex payment channels have been designed and used as building blocks to construct linked payment networks, which allow atomic and trust-free payments between parties without exhausting the resources of the blockchain.Once a payment channel, however, is depleted (e.g., because transactions were mostly unidirectional) the channel would need to be closed and re-funded to allow for new transactions. Users are envisioned to entertain multiple payment channels with di erent entities, and as such, instead of refunding a channel (which incurs costly on-chain transactions), a user should be able to leverage his existing channels to rebalance a poorly funded channel.To the best of our knowledge, we present the rst solution that allows an arbitrary set of users in a payment channel network to securely rebalance their channels, according to the preferences of the channel owners. Except in the case of disputes (similar to conventional payment channels), our solution does not require onchain transactions and therefore increases the scalability of existing blockchains. In our security analysis, we show that an honest participant cannot lose any of its funds while rebalancing. We nally provide a proof of concept implementation and evaluation for the Ethereum network. CCS CONCEPTS• Security and privacy → Distributed systems security; Security protocols; • Computer systems organization → Peer-topeer architectures;
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Collateral employed in cryptoeconomic protocols protects against the misbehavior of economically rational agents, compensating honest users for damages and punishing misbehaving parties. The introduction of collateral, however, carries three disadvantages: (i) requiring agents to lock up substantial amount of collateral can be an entry barrier, limiting the set of candidates to wealthy agents; (ii) affected agents incur ongoing opportunity costs as the collateral cannot be utilized elsewhere; and (iii) users wishing to interact with an agent on a frequent basis (e.g., with a service provider to facilitate second-layer payments), have to ensure the correctness of each interaction individually instead of subscribing to a service period in which interactions are secured by the underlying collateral. We present Promise, a subscription mechanism to decrease the initial capital requirements of economically rational service providers in cryptoeconomic protocols. The mechanism leverages future income (such as service fees) prepaid by users to reduce the collateral actively locked up by service providers, while sustaining secure operation of the protocol. Promise is applicable in the context of multiple service providers competing for users. We provide a model for evaluating its effectiveness and argue its security. Demonstrating Promise's applicability, we discuss how Promise can be integrated into a cross-chain interoperability protocol, XCLAIM, and a second-layer scaling protocol, NOCUST. Last, we present an implementation of the protocol on Ethereum showing that all functions of the protocol can be implemented in constant time complexity and Promise only adds USD 0.05 for a setup per user and service provider and USD 0.01 per service delivery during the subscription period.
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