Hide & Seek: Privacy-preserving rebalancing on payment channel networks
Avarikioti G, Pietrzak KZ, Salem I, Schmid S, Tiwari S, Yeo MX. 2022. Hide & Seek: Privacy-preserving rebalancing on payment channel networks. Financial Cryptography and Data Security. FC: Financial Cryptography and Data Security, LNCS, vol. 13411, 358–373.
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Author
Avarikioti, GeorgiaISTA;
Pietrzak, Krzysztof ZISTA 
;
Salem, Iosif;
Schmid, Stefan;
Tiwari, Samarth;
Yeo, Michelle XISTA
;
Salem, Iosif;
Schmid, Stefan;
Tiwari, Samarth;
Yeo, Michelle XISTADepartment
Series Title
LNCS
Abstract
Payment channels effectively move the transaction load off-chain thereby successfully addressing the inherent scalability problem most cryptocurrencies face. A major drawback of payment channels is the need to “top up” funds on-chain when a channel is depleted. Rebalancing was proposed to alleviate this issue, where parties with depleting channels move their funds along a cycle to replenish their channels off-chain. Protocols for rebalancing so far either introduce local solutions or compromise privacy.
In this work, we present an opt-in rebalancing protocol that is both private and globally optimal, meaning our protocol maximizes the total amount of rebalanced funds. We study rebalancing from the framework of linear programming. To obtain full privacy guarantees, we leverage multi-party computation in solving the linear program, which is executed by selected participants to maintain efficiency. Finally, we efficiently decompose the rebalancing solution into incentive-compatible cycles which conserve user balances when executed atomically.
Publishing Year
Date Published
2022-10-22
Proceedings Title
Financial Cryptography and Data Security
Publisher
Springer Nature
Volume
13411
Page
358-373
Conference
FC: Financial Cryptography and Data Security
Conference Location
Grenada
Conference Date
2022-05-02 – 2022-05-06
ISBN
ISSN
eISSN
IST-REx-ID
Cite this
Avarikioti G, Pietrzak KZ, Salem I, Schmid S, Tiwari S, Yeo MX. Hide & Seek: Privacy-preserving rebalancing on payment channel networks. In: Financial Cryptography and Data Security. Vol 13411. Springer Nature; 2022:358-373. doi:10.1007/978-3-031-18283-9_17
Avarikioti, G., Pietrzak, K. Z., Salem, I., Schmid, S., Tiwari, S., & Yeo, M. X. (2022). Hide & Seek: Privacy-preserving rebalancing on payment channel networks. In Financial Cryptography and Data Security (Vol. 13411, pp. 358–373). Grenada: Springer Nature. https://doi.org/10.1007/978-3-031-18283-9_17
Avarikioti, Georgia, Krzysztof Z Pietrzak, Iosif Salem, Stefan Schmid, Samarth Tiwari, and Michelle X Yeo. “Hide & Seek: Privacy-Preserving Rebalancing on Payment Channel Networks.” In Financial Cryptography and Data Security, 13411:358–73. Springer Nature, 2022. https://doi.org/10.1007/978-3-031-18283-9_17.
G. Avarikioti, K. Z. Pietrzak, I. Salem, S. Schmid, S. Tiwari, and M. X. Yeo, “Hide & Seek: Privacy-preserving rebalancing on payment channel networks,” in Financial Cryptography and Data Security, Grenada, 2022, vol. 13411, pp. 358–373.
Avarikioti G, Pietrzak KZ, Salem I, Schmid S, Tiwari S, Yeo MX. 2022. Hide & Seek: Privacy-preserving rebalancing on payment channel networks. Financial Cryptography and Data Security. FC: Financial Cryptography and Data Security, LNCS, vol. 13411, 358–373.
Avarikioti, Georgia, et al. “Hide & Seek: Privacy-Preserving Rebalancing on Payment Channel Networks.” Financial Cryptography and Data Security, vol. 13411, Springer Nature, 2022, pp. 358–73, doi:10.1007/978-3-031-18283-9_17.
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