Pricing for Routing and Flow-Controlin Payment Channel Networks

Blockchains are decentralized digital transaction systems. Most blockchains today suffer from poor transaction throughput, resulting in exorbitant transaction fees and hindering widespread adoption. Layer-two blockchain mechanisms are tools that allow transactions to take place outside of the main blockchain system, thereby increasing the system's throughput [2]. A payment channel network (PCN) is one such mechanism that is used in practice. This paper focuses on their long-term transaction processing efficiency.