---
OA_place: publisher
_id: '14506'
abstract:
- lang: eng
  text: "Payment channel networks are a promising approach to improve the scalability
    bottleneck\r\nof cryptocurrencies. Two design principles behind payment channel
    networks are\r\nefficiency and privacy. Payment channel networks improve efficiency
    by allowing users\r\nto transact in a peer-to-peer fashion along multi-hop routes
    in the network, avoiding\r\nthe lengthy process of consensus on the blockchain.
    Transacting over payment channel\r\nnetworks also improves privacy as these transactions
    are not broadcast to the blockchain.\r\nDespite the influx of recent protocols
    built on top of payment channel networks and\r\ntheir analysis, a common shortcoming
    of many of these protocols is that they typically\r\nfocus only on either improving
    efficiency or privacy, but not both. Another limitation\r\non the efficiency front
    is that the models used to model actions, costs and utilities of\r\nusers are
    limited or come with unrealistic assumptions.\r\nThis thesis aims to address some
    of the shortcomings of recent protocols and algorithms\r\non payment channel networks,
    particularly in their privacy and efficiency aspects. We\r\nfirst present a payment
    route discovery protocol based on hub labelling and private\r\ninformation retrieval
    that hides the route query and is also efficient. We then present\r\na rebalancing
    protocol that formulates the rebalancing problem as a linear program\r\nand solves
    the linear program using multiparty computation so as to hide the channel\r\nbalances.
    The rebalancing solution as output by our protocol is also globally optimal.\r\nWe
    go on to develop more realistic models of the action space, costs, and utilities
    of\r\nboth existing and new users that want to join the network. In each of these
    settings,\r\nwe also develop algorithms to optimise the utility of these users
    with good guarantees\r\non the approximation and competitive ratios."
alternative_title:
- ISTA Thesis
article_processing_charge: No
author:
- 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: 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>
  apa: 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>
  chicago: 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>.
  ieee: M. X. Yeo, “Advances in efficiency and privacy in payment channel network
    analysis,” Institute of Science and Technology Austria, 2023.
  ista: Yeo MX. 2023. Advances in efficiency and privacy in payment channel network
    analysis. Institute of Science and Technology Austria.
  mla: 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>.
  short: M.X. Yeo, Advances in Efficiency and Privacy in Payment Channel Network Analysis,
    Institute of Science and Technology Austria, 2023.
corr_author: '1'
date_created: 2023-11-10T08:10:43Z
date_published: 2023-11-10T00:00:00Z
date_updated: 2026-04-07T13:29:45Z
day: '10'
ddc:
- '000'
degree_awarded: PhD
department:
- _id: GradSch
- _id: KrPi
doi: 10.15479/14506
ec_funded: 1
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has_accepted_license: '1'
language:
- iso: eng
month: '11'
oa: 1
oa_version: Published Version
page: '162'
project:
- _id: 2564DBCA-B435-11E9-9278-68D0E5697425
  call_identifier: H2020
  grant_number: '665385'
  name: International IST Doctoral Program
publication_identifier:
  issn:
  - 2663-337X
publication_status: published
publisher: Institute of Science and Technology Austria
related_material:
  record:
  - id: '13238'
    relation: part_of_dissertation
    status: deleted
  - id: '9969'
    relation: part_of_dissertation
    status: public
  - id: '14490'
    relation: part_of_dissertation
    status: public
status: public
supervisor:
- first_name: Krzysztof Z
  full_name: Pietrzak, Krzysztof Z
  id: 3E04A7AA-F248-11E8-B48F-1D18A9856A87
  last_name: Pietrzak
  orcid: 0000-0002-9139-1654
title: Advances in efficiency and privacy in payment channel network analysis
type: dissertation
user_id: ba8df636-2132-11f1-aed0-ed93e2281fdd
year: '2023'
...