thesis published Michelle X Yeo author 2D82B818-F248-11E8-B48F-1D18A9856A870009-0001-3676-4809 Krzysztof Z Pietrzak supervisor GradSch department KrPi department International IST Doctoral Program project Payment channel networks are a promising approach to improve the scalability bottleneck of cryptocurrencies. Two design principles behind payment channel networks are efficiency and privacy. Payment channel networks improve efficiency by allowing users to transact in a peer-to-peer fashion along multi-hop routes in the network, avoiding the lengthy process of consensus on the blockchain. Transacting over payment channel networks also improves privacy as these transactions are not broadcast to the blockchain. Despite the influx of recent protocols built on top of payment channel networks and their analysis, a common shortcoming of many of these protocols is that they typically focus only on either improving efficiency or privacy, but not both. Another limitation on the efficiency front is that the models used to model actions, costs and utilities of users are limited or come with unrealistic assumptions. This thesis aims to address some of the shortcomings of recent protocols and algorithms on payment channel networks, particularly in their privacy and efficiency aspects. We first present a payment route discovery protocol based on hub labelling and private information retrieval that hides the route query and is also efficient. We then present a rebalancing protocol that formulates the rebalancing problem as a linear program and solves the linear program using multiparty computation so as to hide the channel balances. The rebalancing solution as output by our protocol is also globally optimal. We go on to develop more realistic models of the action space, costs, and utilities of both existing and new users that want to join the network. In each of these settings, we also develop algorithms to optimise the utility of these users with good guarantees on the approximation and competitive ratios. https://research-explorer.ista.ac.at/download/14506/14598/thesis_yeo.zip application/x-zip-compressed https://research-explorer.ista.ac.at/download/14506/14599/thesis_yeo.pdf application/pdfno Institute of Science and Technology Austria2023 eng 2663-337X10.15479/14506 162 https://research-explorer.ista.ac.at/record/13238 https://research-explorer.ista.ac.at/record/9969 https://research-explorer.ista.ac.at/record/14490 M.X. Yeo, Advances in Efficiency and Privacy in Payment Channel Network Analysis, Institute of Science and Technology Austria, 2023. Yeo, Michelle X. “Advances in Efficiency and Privacy in Payment Channel Network Analysis.” Institute of Science and Technology Austria, 2023. <a href="https://doi.org/10.15479/14506">https://doi.org/10.15479/14506</a>. Yeo, M. X. (2023). <i>Advances in efficiency and privacy in payment channel network analysis</i>. Institute of Science and Technology Austria. <a href="https://doi.org/10.15479/14506">https://doi.org/10.15479/14506</a> Yeo, Michelle X. <i>Advances in Efficiency and Privacy in Payment Channel Network Analysis</i>. Institute of Science and Technology Austria, 2023, doi:<a href="https://doi.org/10.15479/14506">10.15479/14506</a>. M. X. Yeo, “Advances in efficiency and privacy in payment channel network analysis,” Institute of Science and Technology Austria, 2023. Yeo MX. Advances in efficiency and privacy in payment channel network analysis. 2023. doi:<a href="https://doi.org/10.15479/14506">10.15479/14506</a> Yeo MX. 2023. Advances in efficiency and privacy in payment channel network analysis. Institute of Science and Technology Austria. 145062023-11-10T08:10:43Z2026-04-07T13:29:45Z