Improving transaction succeed ratio in payment channel networks via enhanced node connectivity and balanced channel capacity

Abstract

Payment channel networks (PCNs) are generally regarded as one of the most effective and promising scalability solutions for blockchain-based cryptocurrency systems, but suffer the issues of low success ratio and long confirmation latency in processing transactions. In this paper, we demonstrate the feasibility of tremendously increasing the success ratio of transactions and improving their execution efficiency by enhancing network nodes' connectivity and enforcing a balanced network channel capacity. To implement such ideas, multiple designs have been made. First, to extent nodes connectivity, we transform the nearly-linear ordered nodes into a star payment structured typology, and design an incentive financing mechanism to restructure a new landmark routing typology design. Especially, for the marginalized or dissociative nodes, we utilize specific financial loan strategies to encourage them to (re)join the system. Besides, we propose the Power Atomic Multi-Path Payments (Power AMP) traffic distribution method, which hierarchically allocates the bottleneck's currently-available capacity (to replace the random or equal division used in traditional AMP), and thus archives a balanced traffic usage. With such efforts, we improve the transaction success ratio and efficiency of transaction exertion by order of magnitude—compared with traditional PCN using the benchmark of landmark route, our method improves the success ratio by 11.06%.