Payment Channels in Cryptocurrency Networks
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Routing
Cryptocurrency
with the Spider Network
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What is a blockchain?
2
Miners
Blockchain
Blockchain Transactions
1
2
1
2
3
LATENCY
Bitcoin transaction
confirmation time ∼ 1
hr
Cryptocurrencies don’t scale!
4
STORAGE
Needs 350 additional GB
per day for faster
transactions
FEES
Some transactions can
be as expensive as $34
Solution: Payment Channels
Key Idea: Use blockchain (as arbiter) only as necessary!
5
1
2
1
2
1
2
Solution: Payment Channels
6
1
2
Solution: Payment Channels
7
1
2
1
2
Alice
Bob
T
x
n
1
(
2
)
4
3
4
3
Solution: Payment Channels
8
1
2
1
2
- Alice
Alice
Bob
T
x
n
2
(
3
)
5
2
3
4
Solution: Payment Channels
9
1
2
1
2
- Alice
- Bob
Payment Channel Network
10
Alice
Bob
Charlie
Eve
Mary
6
3
6
3
3
3
1
1
1
0
Payment Channel Network
11
Bob
Charlie
Eve
Mary
Alice wants to send
3 coins to Bob
6
3
6
3
3
3
1
1
1
0
Alice
Payment Channel Network
12
Alice
Bob
Charlie
Eve
Mary
Alice wants to send
3 coins to Bob
6
3
6
3
3
3
1
1
1
0
13
Alice
Bob
Charlie
Eve
Mary
Alice wants to send
3 coins to Bob
6
3
6
3
3
3
1
1
1
3
6
3
3
0
Payment Channel Network
Routing in Payment Channel Networks
14
Alice
Bob
Charlie
Eve
Mary
3
6
3
3
3
3
1
1
1
3
Alice wants to send
3 more coins to Bob
15
Alice
Bob
Charlie
Eve
Mary
3
3
3
1
1
1
Alice wants to send
3 more coins to Bob
Routing in Payment Channel Networks
3
6
3
3
16
Alice
Bob
Charlie
Eve
Mary
3
3
3
1
1
1
Routing in Payment Channel Networks
Alice wants to send
3 more coins to Bob
3
6
3
3
0
3
17
Alice
Bob
Charlie
Eve
Mary
3
3
3
1
1
1
Alice wants to send
3 more coins to Bob
9
0
6
6
3
3
Routing in Payment Channel Networks
18
Alice
Bob
Charlie
Eve
Mary
0
0
3
3
3
1
1
1
9
6
Routing in Payment Channel Networks
19
Alice
Bob
Charlie
Eve
Mary
0
0
3
3
3
1
1
1
Charlie wants to send
3 coins to Bob
6
9
Routing in Payment Channel Networks
Payment Channel Network
20
Alice
Bob
Charlie
Eve
Mary
0
0
3
3
3
1
1
Charlie wants to send
3 coins to Bob
6
9
1
Payment Channel Network
21
Alice
Bob
Charlie
Eve
Mary
0
0
3
3
3
1
1
1
Charlie wants to send
3 coins to Bob
6
😟
9
The Spider Network
Goal:
Design routing in payment channel networks for high transaction
throughput with a small amount of capital
Approach:
◦
Packet-switched Network:
Split transactions at senders
◦
Balance aware-routing:
Route based on real time balance information
22
Packet-switched Payment Channel Network
23
Alice
Bob
Charlie
Eve
Mary
6
3
2
3
3
3
1
1
1
0
Alice wants to send
3 coins to Bob
24
Alice
Bob
Charlie
Eve
Mary
6
3
2
3
3
3
1
1
0
Alice wants to send
3 coins to Bob
1
Packet-switched Payment Channel Network
25
Alice
Bob
Charlie
Eve
Mary
6
3
2
3
3
3
1
1
1
0
1
2
Alice wants to send
3 coins to Bob
Packet-switched Payment Channel Network
26
Alice
Bob
Charlie
Eve
Mary
3
3
2
3
3
3
1
1
1
0
Alice wants to send
3 coins to Bob
1
2
Packet-switched Payment Channel Network
27
Alice
Bob
Charlie
Eve
Mary
3
3
2
3
3
3
1
1
1
0
Alice wants to send
3 coins to Bob
1
2
Packet-switched Payment Channel Network
0
28
Alice
Bob
Charlie
Eve
Mary
3
3
3
3
3
1
1
1
0
1
2
2
5
6
0
4
2
2
2
Packet-switched Payment Channel Network
Supporting Large Payments
29
Alice
Bob
Charlie
6
3
2
0
Alice needs to send 30 coins to Bob
Bob needs to send 30 coins to Alice
0/30 sent
0/30 sent
5
4
1
1/30 sent
1/30 sent
2/30 more
3/30 sent
4/30 sent
5/30 sent
Done
2/30 sent
3/30 sent
4/30 sent
5/30 sent
Done
30
The Routing Problem
Payment Graph or Demand
Rates per
edge?
Rate on forward edge = Rate on backward edge
Topology
c
4
c
6
c
3
c
1
c
5
c
2
Fluid Model: Transactions as continuous streams
Alice
Bob
Charlie
31
What’s the best we can do?
Circulation
DAG
=
Payment Graph
1
1
1
1
1
1
1
2
+
1
1
1
1
Can be routed
Needs blockchain
Routing the Circulation
Maximize
sum of rates
Constraints:
◦
Rate per edge < capacity
◦
Rate on forward edge = Rate on backward
edge
32
Topology
Decentralized Algorithm
33
Price increase
Price decrease
Eve
Charlie
Evaluation
Simulator to model transaction processing
Transactions modelled off real-time currency exchange data
Topology modelled off ISP graphs and currency exchange data
34
Preliminary Results
35
Success Percentage
Circulation
Summary
Payment channels promise to improve cryptocurrencies’ scalability
Yet, they suffer from imbalance
problems
We packetize transactions and use balance-aware routing to improve
their transaction throughput
Future Work:
◦
End-host rate control mechanisms
◦
In-network scheduling algorithms
◦
Economic incentives for intermediaries
36
Ripple Results
37
Success Percentage
Circulation
Line about crypto txns going through blockchain
How we can use networking ideas to improve cryptocurrency transaction throughput on today’s blockchains
Explore the concept of payment channels in cryptocurrency networks to address scalability issues and reduce transaction costs. Learn how these channels enable fast and cost-effective transactions by minimizing blockchain usage. Discover the innovative solutions proposed by experts in the field.
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Presentation Transcript
Routing Cryptocurrency with the Spider Network VIBHAALAKSHMI SIVARAMAN, SHAILESHH VENKATAKRISHNAN, MOHAMMAD ALIZADEH, GIULIA FANTI, PRAMOD VISWANATH
What is a blockchain? Blockchain (1) 4 Miners Alice Bob 2
Blockchain Transactions 1 1 (1) 4 Alice (3) Bob 2 2 3 (2) Alice Bob 5 (5) (4) 4 5 Mary Eve Charlie Alice Bob Eve 3
Cryptocurrencies dont scale! STORAGE LATENCY FEES Needs 350 additional GB per day for faster transactions Bitcoin transaction confirmation time 1 hr Some transactions can be as expensive as $34 4
Solution: Payment Channels 1 1 1 Key Idea: Use blockchain (as arbiter) only as necessary! 2 2 2 5
Solution: Payment Channels (1) 4 3 1 Open Channel Alice Bob 2 6
Solution: Payment Channels (1) 4 3 4 3 1 1 (2) 3 4 Open Channel Txn 1 Alice Bob 2 2 Alice Bob 7
Solution: Payment Channels (1) 4 3 1 1 (2) Open Channel (3) Txn 1 5 3 2 4 Txn 2 Alice Bob 2 2 Alice Bob - Alice Alice Bob 8
Solution: Payment Channels (1) 4 3 3 1 1 (2) 4 Open Channel (3) Txn 1 5 2 (4) Txn 2 5 Alice 2 Bob 2 2 (5 ) Alice Txn 2 Bob 5 2 - Alice Alice Alice (n) Txn 2 Bob 5 2 - Bob Close Channel Bob - Bob Alice Bob - Bob Alice Bob 9
Payment Channel Network Charlie Alice 6 6 3 Bob 0 1 1 3 3 3 1 Eve Mary 10
Payment Channel Network Alice wants to send 3 coins to Bob Charlie Alice 6 6 3 Bob 0 1 1 3 3 3 1 Eve Mary 11
Payment Channel Network Alice wants to send 3 coins to Bob Charlie Alice 6 6 3 Bob 0 1 1 3 3 3 1 Eve Mary 12
Payment Channel Network Alice wants to send 3 coins to Bob Charlie Alice 6 3 6 6 3 3 Bob 3 0 1 1 3 3 3 1 Eve Mary 13
Routing in Payment Channel Networks Alice wants to send 3 more coins to Bob Charlie Alice 6 3 3 Bob 3 1 1 3 3 3 1 Eve Mary 14
Routing in Payment Channel Networks Alice wants to send 3 more coins to Bob Charlie Alice 6 3 3 Bob 3 1 1 3 3 3 1 Eve Mary 15
Routing in Payment Channel Networks Alice wants to send 3 more coins to Bob Charlie Alice 6 3 3 Bob 3 1 1 3 3 3 1 Eve Mary 16
Routing in Payment Channel Networks Alice wants to send 3 more coins to Bob Charlie Alice 9 6 3 0 3 6 0 Bob 3 1 1 3 3 3 1 Eve Mary 17
Routing in Payment Channel Networks Charlie Alice 9 6 Bob 0 0 1 1 3 3 3 1 Eve Mary 18
Routing in Payment Channel Networks Charlie wants to send 3 coins to Bob Charlie Alice 9 6 Bob 0 0 1 1 3 3 3 1 Eve Mary 19
Payment Channel Network Charlie wants to send 3 coins to Bob Charlie Alice 9 6 Bob 0 0 1 1 3 3 3 1 Eve Mary 20
Payment Channel Network Charlie wants to send 3 coins to Bob Charlie Alice 9 6 Bob 0 0 1 1 3 3 3 1 Eve Mary 21
The Spider Network Goal: Design routing in payment channel networks for high transaction throughput with a small amount of capital Approach: Packet-switched Network: Split transactions at senders Balance aware-routing: Route based on real time balance information 22
Packet-switched Payment Channel Network Alice wants to send 3 coins to Bob Charlie Alice 6 3 2 Bob 0 1 1 3 3 3 1 Eve Mary 23
Packet-switched Payment Channel Network Alice wants to send 3 coins to Bob Charlie Alice 6 3 2 Bob 0 1 1 3 3 3 1 Eve Mary 24
Packet-switched Payment Channel Network 1 Alice wants to send 3 coins to Bob Charlie Alice 2 6 3 2 Bob 0 1 1 3 3 3 1 Eve Mary 25
Packet-switched Payment Channel Network 1 Alice wants to send 3 coins to Bob Charlie Alice 2 3 3 2 Bob 0 1 1 3 3 3 1 Eve Mary 26
Packet-switched Payment Channel Network 1 Alice wants to send 3 coins to Bob Charlie Alice 2 3 3 2 Bob 0 1 1 3 3 3 1 Eve Mary 27
Packet-switched Payment Channel Network 1 Charlie Alice 2 3 5 6 3 2 Bob 0 0 1 0 1 3 4 3 2 3 2 1 2 Eve Mary 28
Supporting Large Payments Alice needs to send 30 coins to Bob Bob needs to send 30 coins to Alice 0/30 sent 1/30 sent 2/30 more 3/30 sent 4/30 sent 5/30 sent Done Charlie Alice 6 5 3 4 0/30 sent 1/30 sent 2/30 sent 3/30 sent 4/30 sent 5/30 sent Done 2 1 Bob 0 29
The Routing Problem Fluid Model: Transactions as continuous streams Rates per edge? Topology Payment Graph or Demand c1 Charlie 2 2 1 c6 c2 2 c3 1 2 c4 c5 1 1 Bob Alice Rate on forward edge = Rate on backward edge 30
Whats the best we can do? Payment Graph Circulation Can be routed DAG Needs blockchain 1 2 1 1 2 1 1 1 + = 1 2 1 1 1 2 1 2 1 1 1 1 31
Routing the Circulation Maximize sum of rates Constraints: Rate per edge < capacity Rate on forward edge = Rate on backward edge Topology ruv rvu ruv rvu rvu ruv ruv rvu ruv rvu ruv rvu 32
Decentralized Algorithm 9 6 3 0 Price increase Price decrease pvu puv Eve Charlie 33
Evaluation Simulator to model transaction processing Transactions modelled off real-time currency exchange data Topology modelled off ISP graphs and currency exchange data 34
Preliminary Results 90 Success Percentage 80 70 60 Circulation 50 40 30 20 10 0 Volume of payments completed SpeedyMurmurs Spider (LP) Number of payments completed SilentWhispers Spider (Waterfilling) Shortest Path 35
Summary Payment channels promise to improve cryptocurrencies scalability Yet, they suffer from imbalance problems We packetize transactions and use balance-aware routing to improve their transaction throughput Future Work: End-host rate control mechanisms In-network scheduling algorithms Economic incentives for intermediaries 36
Ripple Results 80 Success Percentage 70 60 50 40 30 Circulation 20 10 0 Volume of payments completed SpeedyMurmurs Spider (LP) Number of payments completed SilentWhispers Spider (Waterfilling) Shortest Path 37
