Abstract
Bitcoin does not scale, because its synchronization mechanism, the blockchain, limits the maximum rate of transactions the network can process. However, using off-blockchain transactions it is possible to create long-lived channels over which an arbitrary number of transfers can be processed locally between two users, without any burden to the Bitcoin network. These channels may form a network of payment service providers (PSPs). Payments can be routed between any two users in real time, without any confirmation delay. In this work we present a protocol for duplex micropayment channels, which guarantees end-to-end security and allow instant transfers, laying the foundation of the PSP network.
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Decker, C., Wattenhofer, R. (2015). A Fast and Scalable Payment Network with Bitcoin Duplex Micropayment Channels. In: Pelc, A., Schwarzmann, A. (eds) Stabilization, Safety, and Security of Distributed Systems. SSS 2015. Lecture Notes in Computer Science(), vol 9212. Springer, Cham. https://doi.org/10.1007/978-3-319-21741-3_1
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DOI: https://doi.org/10.1007/978-3-319-21741-3_1
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