---
_id: '17060'
abstract:
- lang: eng
  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."
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."
article_processing_charge: Yes (in subscription journal)
arxiv: 1
author:
- first_name: Samarth
  full_name: Tiwari, Samarth
  last_name: Tiwari
- first_name: Michelle X
  full_name: Yeo, Michelle X
  id: 2D82B818-F248-11E8-B48F-1D18A9856A87
  last_name: Yeo
  orcid: 0009-0001-3676-4809
- first_name: Zeta
  full_name: Avarikioti, Zeta
  last_name: Avarikioti
- first_name: Iosif
  full_name: Salem, Iosif
  last_name: Salem
- first_name: Krzysztof Z
  full_name: Pietrzak, Krzysztof Z
  id: 3E04A7AA-F248-11E8-B48F-1D18A9856A87
  last_name: Pietrzak
  orcid: 0000-0002-9139-1654
- first_name: Stefan
  full_name: Schmid, Stefan
  last_name: Schmid
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>'
  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>'
  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>.'
  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.'
  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.'
  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>.'
  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.
conference:
  end_date: 2022-09-21
  location: Cambridge, MA, United States
  name: 'AFT: Conference on Advances in Financial Technologies'
  start_date: 2022-09-19
date_created: 2024-05-28T13:58:35Z
date_published: 2022-09-19T00:00:00Z
date_updated: 2025-09-10T09:57:48Z
day: '19'
ddc:
- '000'
department:
- _id: KrPi
doi: 10.1145/3558535.3559775
external_id:
  arxiv:
  - '2205.11597'
  isi:
  - '001041852800015'
file:
- access_level: open_access
  checksum: 54a7d405f8e57dba24728599ca63818c
  content_type: application/pdf
  creator: dernst
  date_created: 2024-08-19T06:45:21Z
  date_updated: 2024-08-19T06:45:21Z
  file_id: '17439'
  file_name: 2022_AFT_Tiwari.pdf
  file_size: 574728
  relation: main_file
  success: 1
file_date_updated: 2024-08-19T06:45:21Z
has_accepted_license: '1'
isi: 1
language:
- iso: eng
license: https://creativecommons.org/licenses/by/4.0/
month: '09'
oa: 1
oa_version: Published Version
page: 217-231
publication: Proceedings of the 4th ACM Conference on Advances in Financial Technologies
publication_identifier:
  isbn:
  - '9781450398619'
publication_status: published
publisher: Association for Computing Machinery
quality_controlled: '1'
scopus_import: '1'
status: public
title: 'Wiser: Increasing throughput in payment channel networks with transaction
  aggregation'
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: 317138e5-6ab7-11ef-aa6d-ffef3953e345
year: '2022'
...