A Multipath Payment Scheme Supporting Proof of Payment

Abstract

Blockchain technology has always been plagued by performance problems. Given this problem, many scaling schemes have been put forward. A layer 2 network is a technology that solves the performance problem of blockchain. Connected parties in this network can set up channels to send digital currency to each other. Since the interaction with the blockchain is only required when the channel is established and closed, a large number of transactions do not need to be recorded on the blockchain, thus reducing the blockchain capacity. Due to the special structure of the payment channel, the distribution of funds in the channel is often unbalanced, which limits the route payment to a certain extent. This paper improves the original payment method in the second layer network by introducing new scripts. The new payment scheme supports proof of payment which is integral to the nature of the lightning network and divides the payment into several subpayments, so the large payment can be divided into relatively small payments. Due to the capacity limitation of the payment channel, theoretically, the success rate of the micropayment route is higher. This paper tests the new payment scheme on the simulated network and validates the nature of this solution to have a high routing success rate while supporting proof of payment.

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“…Intensive researches have resulted in various off-chain protocols aimed at enhancing the efficiency and scalability of LN by addressing other impacting factors, which will be discussed in later sections. These protocols include payment channels [18], [21], [22], virtual channels [24], channel factories [25], payment channel networks [13], [25]- [27], routing protocols [28], [29], fee minimization [31], reduced collateral time locking [32], channel rebalancing [33], as well as security and privacy enhancement [33]- [35]. These protocols leverage essential blockchain properties like integrity and synchronicity, performing efficiently within specified time windows [36], [37].…”

“…By distributing the payment value across multiple paths, the network can efficiently utilize available channel capacities, increasing the likelihood of successful routing. These split payments can be routed directly from the sender to the receiver based on available channel capacity or indirectly through multiple intermediate hops, accompanied by small charging fees [27]. The success of routing payments in PCN relies on finding suitable paths with sufficient capacities.…”

“…Disputes originated in PCN typically within the network itself but are ultimately resolved on the layer one blockchain [15], [27], [57], [95]. These disputes can arise when a party attempts to deceive others by submitting an outdated transaction state to gain unauthorized access to previously acquired funds or when a party becomes unresponsive and unexpectedly disconnects from the network.…”

“…These challenges may include depleting capacities, resulting in payment failures, potentially leaking sensitive information, and overlooking cheaper fee paths. As a result, enhancing routing remains a substantial open challenge for researchers and developers in the field [17], [27], [39].…”