{"date_published":"2022-09-19T00:00:00Z","author":[{"full_name":"Tiwari, Samarth","last_name":"Tiwari","first_name":"Samarth"},{"orcid":"0009-0001-3676-4809","first_name":"Michelle X","id":"2D82B818-F248-11E8-B48F-1D18A9856A87","full_name":"Yeo, Michelle X","last_name":"Yeo"},{"last_name":"Avarikioti","full_name":"Avarikioti, Zeta","first_name":"Zeta"},{"first_name":"Iosif","full_name":"Salem, Iosif","last_name":"Salem"},{"orcid":"0000-0002-9139-1654","first_name":"Krzysztof Z","full_name":"Pietrzak, Krzysztof Z","id":"3E04A7AA-F248-11E8-B48F-1D18A9856A87","last_name":"Pietrzak"},{"full_name":"Schmid, Stefan","last_name":"Schmid","first_name":"Stefan"}],"_id":"17060","language":[{"iso":"eng"}],"publication":"Proceedings of the 4th ACM Conference on Advances in Financial Technologies","publisher":"Association for Computing Machinery","title":"Wiser: Increasing throughput in payment channel networks with transaction aggregation","file_date_updated":"2024-08-19T06:45:21Z","quality_controlled":"1","citation":{"ama":"Tiwari S, Yeo MX, Avarikioti Z, Salem I, Pietrzak KZ, Schmid S. Wiser: Increasing throughput in payment channel networks with transaction aggregation. In: <i>Proceedings of the 4th ACM Conference on Advances in Financial Technologies</i>. Association for Computing Machinery; 2022:217-231. doi:<a href=\"https://doi.org/10.1145/3558535.3559775\">10.1145/3558535.3559775</a>","short":"S. Tiwari, M.X. Yeo, Z. Avarikioti, I. Salem, K.Z. Pietrzak, S. Schmid, in:, Proceedings of the 4th ACM Conference on Advances in Financial Technologies, Association for Computing Machinery, 2022, pp. 217–231.","ieee":"S. Tiwari, M. X. Yeo, Z. Avarikioti, I. Salem, K. Z. Pietrzak, and S. Schmid, “Wiser: Increasing throughput in payment channel networks with transaction aggregation,” in <i>Proceedings of the 4th ACM Conference on Advances in Financial Technologies</i>, Cambridge, MA, United States, 2022, pp. 217–231.","chicago":"Tiwari, Samarth, Michelle X Yeo, Zeta Avarikioti, Iosif Salem, Krzysztof Z Pietrzak, and Stefan Schmid. “Wiser: Increasing Throughput in Payment Channel Networks with Transaction Aggregation.” In <i>Proceedings of the 4th ACM Conference on Advances in Financial Technologies</i>, 217–31. Association for Computing Machinery, 2022. <a href=\"https://doi.org/10.1145/3558535.3559775\">https://doi.org/10.1145/3558535.3559775</a>.","ista":"Tiwari S, Yeo MX, Avarikioti Z, Salem I, Pietrzak KZ, Schmid S. 2022. Wiser: Increasing throughput in payment channel networks with transaction aggregation. Proceedings of the 4th ACM Conference on Advances in Financial Technologies. AFT: Conference on Advances in Financial Technologies, 217–231.","apa":"Tiwari, S., Yeo, M. X., Avarikioti, Z., Salem, I., Pietrzak, K. Z., &#38; Schmid, S. (2022). Wiser: Increasing throughput in payment channel networks with transaction aggregation. In <i>Proceedings of the 4th ACM Conference on Advances in Financial Technologies</i> (pp. 217–231). Cambridge, MA, United States: Association for Computing Machinery. <a href=\"https://doi.org/10.1145/3558535.3559775\">https://doi.org/10.1145/3558535.3559775</a>","mla":"Tiwari, Samarth, et al. “Wiser: Increasing Throughput in Payment Channel Networks with Transaction Aggregation.” <i>Proceedings of the 4th ACM Conference on Advances in Financial Technologies</i>, Association for Computing Machinery, 2022, pp. 217–31, doi:<a href=\"https://doi.org/10.1145/3558535.3559775\">10.1145/3558535.3559775</a>."},"oa_version":"Published Version","user_id":"2DF688A6-F248-11E8-B48F-1D18A9856A87","type":"conference","article_processing_charge":"Yes (in subscription journal)","publication_identifier":{"isbn":["9781450398619"]},"has_accepted_license":"1","publication_status":"published","isi":1,"external_id":{"isi":["001041852800015"],"arxiv":["2205.11597"]},"status":"public","tmp":{"short":"CC BY (4.0)","name":"Creative Commons Attribution 4.0 International Public License (CC-BY 4.0)","legal_code_url":"https://creativecommons.org/licenses/by/4.0/legalcode","image":"/images/cc_by.png"},"year":"2022","department":[{"_id":"KrPi"}],"page":"217-231","day":"19","abstract":[{"text":"Payment channel networks (PCNs) are one of the most prominent solutions to the limited transaction throughput of blockchains. Nevertheless, PCNs suffer themselves from a throughput limitation due to the capital constraints of their channels. A similar dependence on high capital is also found in inter-bank payment settlements, where the so-called netting technique is used to mitigate liquidity demands.\r\nIn this work, we alleviate this limitation by introducing the notion of transaction aggregation: instead of executing transactions sequentially through a PCN, we enable senders to aggregate multiple transactions and execute them simultaneously to benefit from several amounts that may \"cancel out\". Two direct advantages of our proposal is the decrease in intermediary fees paid by senders as well as the obfuscation of the transaction data from the intermediaries.\r\nWe formulate the transaction aggregation as a computational problem, a generalization of the Bank Clearing Problem. We present a generic framework for the transaction aggregation execution, and thereafter we propose Wiser as an implementation of this framework in a specific hub-based setting. To overcome the NP-hardness of the transaction aggregation problem, in Wiser we propose a fixed-parameter linear algorithm for a special case of transaction aggregation as well as the Bank Clearing Problem. Wiser can also be seen as a modern variant of the Hawala money transfer system, as well as a decentralized implementation of the overseas remittance service of Wise.","lang":"eng"}],"conference":{"location":"Cambridge, MA, United States","name":"AFT: Conference on Advances in Financial Technologies","end_date":"2022-09-21","start_date":"2022-09-19"},"date_updated":"2024-08-19T06:49:09Z","file":[{"file_size":574728,"file_id":"17439","creator":"dernst","content_type":"application/pdf","date_created":"2024-08-19T06:45:21Z","access_level":"open_access","file_name":"2022_AFT_Tiwari.pdf","success":1,"checksum":"54a7d405f8e57dba24728599ca63818c","relation":"main_file","date_updated":"2024-08-19T06:45:21Z"}],"acknowledgement":"This work was supported partially by ERC Starting Grant QIP–805241, by the Vienna business agency (Wirtschaftsagentur) through the Vienna Cybersecurity and Privacy Research Center\r\n(ViSP) and by the Austrian Science Fund (FWF) project I 4800-N (ADVISE).\r\nThe first author would like to thank Daniel Dadush for suggesting the use of discrepancy techniques to solve the transaction aggregation problem.","date_created":"2024-05-28T13:58:35Z","scopus_import":"1","month":"09","oa":1,"ddc":["000"],"doi":"10.1145/3558535.3559775"}