A Data Trading Scheme Based on Payment Channel Network for Internet of Things

Li, Dunfeng; Feng, Yong; Xiao, Yao; Tang, Mingjing; Fu, Xiaodong

doi:10.1007/978-981-15-9213-3_25

Cited by 4 publications

(3 citation statements)

References 9 publications

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“…In contrast, in our approach, IoT devices only generate signatures which is not a resourceintensive operation. The work by Li et al [19] focuses on designing a PCN-based smart contract for IoT data transactions. However, they do not seem to discuss the costs associated with their protocol and routing performance of the protocol drops significantly when there are malicious nodes in the network.…”

Section: Related Workmentioning

confidence: 99%

LNGate$^2$: Secure Bidirectional IoT Micro-payments using Bitcoin's Lightning Network and Threshold Cryptography

Kurt¹,

Akkaya²,

Yılmaz³

et al. 2022

Preprint

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Bitcoin has emerged as a revolutionary payment system with its decentralized ledger concept; however it has significant problems such as high transaction fees and low throughput. Lightning Network (LN), which was introduced much later, solves most of these problems with an innovative concept called off-chain payments. With this advancement, Bitcoin has become an attractive venue to perform micro-payments which can also be adopted in many IoT applications (e.g., toll payments). Nevertheless, it is not feasible to host LN and Bitcoin on IoT devices due to the storage, memory, and processing restrictions. Therefore, in this paper, we propose a secure and efficient protocol that enables an IoT device to use LN's functions through an untrusted gateway node. Through this gateway which hosts the LN and Bitcoin nodes, the IoT device can open & close LN channels and send & receive LN payments. This delegation approach is powered by a threshold cryptography based scheme that requires the IoT device and the LN gateway to jointly perform all LN operations. Specifically, we propose thresholdizing LN's Bitcoin public and private keys as well as its public and private keys for the new channel states (i.e., commitment points). We prove with a game theoretical security analysis that the IoT device is secure against collusion and stealing attacks. We implemented the proposed protocol by changing LN's source code and thoroughly evaluated its performance using a Raspberry Pi. Our evaluation results show that the protocol is fast, does not bring extra cost overhead and can be run on low data-rate wireless networks. To the best of our knowledge, this is the first work that implemented threshold cryptography in LN.

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Section: Related Workmentioning

confidence: 99%

LNGate$^2$: Secure Bidirectional IoT Micro-payments using Bitcoin's Lightning Network and Threshold Cryptography

Kurt¹,

Akkaya²,

Yılmaz³

et al. 2022

Preprint

View full text Add to dashboard Cite

show abstract

“…In our approach, we only require the IoT device to generate signatures, which is not a resource-intensive operation. Another work, [16], focuses on data transactions for IoT using payment channels. A slightly different work by authors of [17] explores using LN for delivering patch updates to the IoT devices.…”

Section: Related Workmentioning

confidence: 99%

3-of-3 multisignature approach for enabling lightning network micro-payments on IoT devices

Kurt¹,

Mercan²,

Erdin³

et al. 2021

ITU-J FET

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Bitcoin's success as a cryptocurrency enabled it to penetrate into many daily life transactions. Its problems regarding the transaction fees and long validation times are addressed through an innovative concept called the Lightning Network (LN) which works on top of Bitcoin by leveraging off-chain transactions. This made Bitcoin an attractive micropayment solution that can also be used within certain IoT applications (e.g., toll payments) since it eliminates the need for traditional centralized payment systems. Nevertheless, it is not possible to run LN and Bitcoin on resource-constrained IoT devices due to their storage, memory, and processing requirements. Therefore, in this paper, we propose an efficient and secure protocol that enables an IoT device to use LN's functions through a gateway LN node even if it is not trusted. The idea is to involve the IoT device only in signing operations, which is possible by replacing LN's original 2-of-2 multisignature channels with 3-of-3 multisignature channels. Once the gateway is delegated to open a channel for the IoT device in a secure manner, our protocol enforces the gateway to request the IoT device's cryptographic signature for all further operations on the channel such as sending payments or closing the channel. LN's Bitcoin transactions are revised to incorporate the 3-of-3 multisignature channels. In addition, we propose other changes to protect the IoT device's funds from getting stolen in possible revoked state broadcast attempts. We evaluated the proposed protocol using a Raspberry Pi considering a toll payment scenario. Our results show that timely payments can be sent and the computational and communication delays associated with the protocol are negligible.

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“…In our approach, we only require the IoT device to generate signatures, which is not a resource-intensive operation. Another work, [16], focuses on data transactions for IoT using payment channels. A slightly different work by au-thors of [17] explores using LN for delivering patch updates to the IoT devices.…”

Section: Related Workmentioning

confidence: 99%

3-of-3 Multisignature Approach for Enabling Lightning Network Micro-payments on IoT Devices

Kurt¹,

Mercan²,

Erdin³

et al. 2021

Preprint

View full text Add to dashboard Cite

Bitcoin's success as a cryptocurrency enabled it to penetrate into many daily life transactions. Its problems regarding the transaction fees and long validation times are addressed through an innovative concept called the Lightning Network (LN) which works on top of Bitcoin by leveraging off-chain transactions. This made Bitcoin an attractive micropayment solution that can also be used within certain IoT applications (e.g., toll payments) since it eliminates the need for traditional centralized payment systems. Nevertheless, it is not possible to run LN and Bitcoin on resource-constrained IoT devices due to their storage, memory, and processing requirements. Therefore, in this paper, we propose an efficient and secure protocol that enables an IoT device to use LN's functions through a gateway LN node even if it is not trusted. The idea is to involve the IoT device only in signing operations, which is possible by replacing LN's original 2-of-2 multisignature channels with 3-of-3 multisignature channels. Once the gateway is delegated to open a channel for the IoT device in a secure manner, our protocol enforces the gateway to request the IoT device's cryptographic signature for all further operations on the channel such as sending payments or closing the channel. LN's Bitcoin transactions are revised to incorporate the 3of-3 multisignature channels. In addition, we propose other changes to protect the IoT device's funds from getting stolen in possible revoked state broadcast attempts. We evaluated the proposed protocol using a Raspberry Pi considering a toll payment scenario. Our results show that timely payments can be sent and the computational and communication delays associated with the protocol are negligible.

show abstract

A Data Trading Scheme Based on Payment Channel Network for Internet of Things

Cited by 4 publications

References 9 publications

LNGate$^2$: Secure Bidirectional IoT Micro-payments using Bitcoin's Lightning Network and Threshold Cryptography

LNGate$^2$: Secure Bidirectional IoT Micro-payments using Bitcoin's Lightning Network and Threshold Cryptography

3-of-3 multisignature approach for enabling lightning network micro-payments on IoT devices

3-of-3 Multisignature Approach for Enabling Lightning Network Micro-payments on IoT Devices

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