---
OA_place: publisher
OA_type: gold
_id: '21412'
abstract:
- lang: eng
  text: "Payment channel networks (PCNs) are a promising technology that alleviates
    blockchain scalability by shifting the transaction load from the blockchain to
    the PCN. Nevertheless, the network topology has to be carefully designed to maximise
    the transaction throughput in PCNs. Additionally, users in PCNs also have to make
    optimal decisions on which transactions to forward and which to reject to prolong
    the lifetime of their channels. In this work, we consider an input sequence of
    transactions over p parties. Each transaction consists of a transaction size,
    source, and target, and can be either accepted or rejected (entailing a cost).
    The goal is to design a PCN topology among the p cooperating parties, along with
    the channel capacities, and then output a decision for each transaction in the
    sequence to minimise the cost of creating and augmenting channels, as well as
    the cost of rejecting transactions. Our main contribution is an \U0001D4AA(p)
    approximation algorithm for the problem with p parties. We further show that with
    some assumptions on the distribution of transactions, we can reduce the approximation
    ratio to \U0001D4AA(√p). We complement our theoretical analysis with an empirical
    study of our assumptions and approach in the context of the Lightning Network."
acknowledgement: "Chatterjee, Krishnendu: European Research Council CoG 863818 (ForM-SMArt)
  and Austrian Science Fund 10.55776/COE12.\r\nKřišťan, Jan Matyáš: Czech Science
  Foundation Grant no. 24-12046S.\r\nSchmid, Stefan: German Research Foundation (DFG)
  project ReNO (SPP 2378) from 2023-2027.\r\nSvoboda, Jakub: European Research Council
  CoG 863818 (ForM-SMArt) and Austrian Science Fund 10.55776/COE12.\r\nYeo, Michelle:
  MOE-T2EP20122-0014 (Data-Driven Distributed Algorithms)."
alternative_title:
- LIPIcs
article_number: '23'
article_processing_charge: No
arxiv: 1
author:
- first_name: Krishnendu
  full_name: Chatterjee, Krishnendu
  id: 2E5DCA20-F248-11E8-B48F-1D18A9856A87
  last_name: Chatterjee
  orcid: 0000-0002-4561-241X
- first_name: Jan Matyáš
  full_name: Křišťan, Jan Matyáš
  last_name: Křišťan
- first_name: Stefan
  full_name: Schmid, Stefan
  last_name: Schmid
- first_name: Jakub
  full_name: Svoboda, Jakub
  id: 130759D2-D7DD-11E9-87D2-DE0DE6697425
  last_name: Svoboda
  orcid: 0000-0002-1419-3267
- first_name: Michelle X
  full_name: Yeo, Michelle X
  id: 2D82B818-F248-11E8-B48F-1D18A9856A87
  last_name: Yeo
  orcid: 0009-0001-3676-4809
citation:
  ama: 'Chatterjee K, Křišťan JM, Schmid S, Svoboda J, Yeo MX. Boosting payment channel
    network liquidity with topology optimization and transaction selection. In: <i>39th
    International Symposium on Distributed Computing</i>. Vol 356. Schloss Dagstuhl
    - Leibniz-Zentrum für Informatik; 2025. doi:<a href="https://doi.org/10.4230/LIPIcs.DISC.2025.23">10.4230/LIPIcs.DISC.2025.23</a>'
  apa: 'Chatterjee, K., Křišťan, J. M., Schmid, S., Svoboda, J., &#38; Yeo, M. X.
    (2025). Boosting payment channel network liquidity with topology optimization
    and transaction selection. In <i>39th International Symposium on Distributed Computing</i>
    (Vol. 356). Berlin, Germany: Schloss Dagstuhl - Leibniz-Zentrum für Informatik.
    <a href="https://doi.org/10.4230/LIPIcs.DISC.2025.23">https://doi.org/10.4230/LIPIcs.DISC.2025.23</a>'
  chicago: Chatterjee, Krishnendu, Jan Matyáš Křišťan, Stefan Schmid, Jakub Svoboda,
    and Michelle X Yeo. “Boosting Payment Channel Network Liquidity with Topology
    Optimization and Transaction Selection.” In <i>39th International Symposium on
    Distributed Computing</i>, Vol. 356. Schloss Dagstuhl - Leibniz-Zentrum für Informatik,
    2025. <a href="https://doi.org/10.4230/LIPIcs.DISC.2025.23">https://doi.org/10.4230/LIPIcs.DISC.2025.23</a>.
  ieee: K. Chatterjee, J. M. Křišťan, S. Schmid, J. Svoboda, and M. X. Yeo, “Boosting
    payment channel network liquidity with topology optimization and transaction selection,”
    in <i>39th International Symposium on Distributed Computing</i>, Berlin, Germany,
    2025, vol. 356.
  ista: 'Chatterjee K, Křišťan JM, Schmid S, Svoboda J, Yeo MX. 2025. Boosting payment
    channel network liquidity with topology optimization and transaction selection.
    39th International Symposium on Distributed Computing. DISC: Symposium on Distributed
    Computing, LIPIcs, vol. 356, 23.'
  mla: Chatterjee, Krishnendu, et al. “Boosting Payment Channel Network Liquidity
    with Topology Optimization and Transaction Selection.” <i>39th International Symposium
    on Distributed Computing</i>, vol. 356, 23, Schloss Dagstuhl - Leibniz-Zentrum
    für Informatik, 2025, doi:<a href="https://doi.org/10.4230/LIPIcs.DISC.2025.23">10.4230/LIPIcs.DISC.2025.23</a>.
  short: K. Chatterjee, J.M. Křišťan, S. Schmid, J. Svoboda, M.X. Yeo, in:, 39th International
    Symposium on Distributed Computing, Schloss Dagstuhl - Leibniz-Zentrum für Informatik,
    2025.
conference:
  end_date: 2025-10-31
  location: Berlin, Germany
  name: 'DISC: Symposium on Distributed Computing'
  start_date: 2025-10-27
cryptoeprintid: 1
date_created: 2026-03-08T23:01:46Z
date_published: 2025-10-22T00:00:00Z
date_updated: 2026-09-16T07:27:09Z
day: '22'
ddc:
- '000'
department:
- _id: KrCh
doi: 10.4230/LIPIcs.DISC.2025.23
ec_funded: 1
external_id:
  arxiv:
  - '2508.14524'
  cryptoeprintid:
  - 2025/1484
file:
- access_level: open_access
  checksum: 8e3d1594365df60163d9df22158a37b1
  content_type: application/pdf
  creator: dernst
  date_created: 2026-03-09T11:51:59Z
  date_updated: 2026-03-09T11:51:59Z
  file_id: '21418'
  file_name: 2025_DISC_Chatterjee.pdf
  file_size: 1130069
  relation: main_file
  success: 1
file_date_updated: 2026-03-09T11:51:59Z
fulldoi: https://doi.org/10.4230/LIPIcs.DISC.2025.23
has_accepted_license: '1'
intvolume: '       356'
language:
- iso: eng
month: '10'
oa: 1
oa_version: Published Version
project:
- _id: 0599E47C-7A3F-11EA-A408-12923DDC885E
  call_identifier: H2020
  grant_number: '863818'
  name: 'Formal Methods for Stochastic Models: Algorithms and Applications'
- _id: 4029cfc7-b034-11f1-9e55-88ab2ff3b6ee
  grant_number: COE12
  name: Bilateral Artificial Intelligence (Chatterjee)
publication: 39th International Symposium on Distributed Computing
publication_identifier:
  isbn:
  - '9783959774024'
  issn:
  - 1868-8969
publication_status: published
publisher: Schloss Dagstuhl - Leibniz-Zentrum für Informatik
quality_controlled: '1'
scopus_import: '1'
status: public
title: Boosting payment channel network liquidity with topology optimization and transaction
  selection
tmp:
  image: /images/cc_by.png
  legal_code_url: https://creativecommons.org/licenses/by/4.0/legalcode
  name: Creative Commons Attribution 4.0 International Public License (CC-BY 4.0)
  short: CC BY (4.0)
type: conference
user_id: 2DF688A6-F248-11E8-B48F-1D18A9856A87
volume: 356
year: '2025'
...