---
_id: '14490'
abstract:
- lang: eng
  text: Payment channel networks (PCNs) are a promising solution to the scalability
    problem of cryptocurrencies. Any two users connected by a payment channel in the
    network can theoretically send an unbounded number of instant, costless transactions
    between them. Users who are not directly connected can also transact with each
    other in a multi-hop fashion. In this work, we study the incentive structure behind
    the creation of payment channel networks, particularly from the point of view
    of a single user that wants to join the network. We define a utility function
    for a new user in terms of expected revenue, expected fees, and the cost of creating
    channels, and then provide constant factor approximation algorithms that optimise
    the utility function given a certain budget. Additionally, we take a step back
    from a single user to the whole network and examine the parameter spaces under
    which simple graph topologies form a Nash equilibrium.
acknowledgement: The work was partially supported by the Austrian Science Fund (FWF)
  through the project CoRaF (grant 2020388). It was also partially supported by NCN
  Grant 2019/35/B/ST6/04138 and ERC Grant 885666.
article_processing_charge: No
arxiv: 1
author:
- first_name: Zeta
  full_name: Avarikioti, Zeta
  last_name: Avarikioti
- first_name: Tomasz
  full_name: Lizurej, Tomasz
  last_name: Lizurej
- first_name: Tomasz
  full_name: Michalak, Tomasz
  last_name: Michalak
- first_name: Michelle X
  full_name: Yeo, Michelle X
  id: 2D82B818-F248-11E8-B48F-1D18A9856A87
  last_name: Yeo
citation:
  ama: 'Avarikioti Z, Lizurej T, Michalak T, Yeo MX. Lightning creation games. In:
    <i>43rd International Conference on Distributed Computing Systems</i>. Vol 2023.
    IEEE; 2023:603-613. doi:<a href="https://doi.org/10.1109/ICDCS57875.2023.00037">10.1109/ICDCS57875.2023.00037</a>'
  apa: 'Avarikioti, Z., Lizurej, T., Michalak, T., &#38; Yeo, M. X. (2023). Lightning
    creation games. In <i>43rd International Conference on Distributed Computing Systems</i>
    (Vol. 2023, pp. 603–613). Hong Kong, China: IEEE. <a href="https://doi.org/10.1109/ICDCS57875.2023.00037">https://doi.org/10.1109/ICDCS57875.2023.00037</a>'
  chicago: Avarikioti, Zeta, Tomasz Lizurej, Tomasz Michalak, and Michelle X Yeo.
    “Lightning Creation Games.” In <i>43rd International Conference on Distributed
    Computing Systems</i>, 2023:603–13. IEEE, 2023. <a href="https://doi.org/10.1109/ICDCS57875.2023.00037">https://doi.org/10.1109/ICDCS57875.2023.00037</a>.
  ieee: Z. Avarikioti, T. Lizurej, T. Michalak, and M. X. Yeo, “Lightning creation
    games,” in <i>43rd International Conference on Distributed Computing Systems</i>,
    Hong Kong, China, 2023, vol. 2023, pp. 603–613.
  ista: 'Avarikioti Z, Lizurej T, Michalak T, Yeo MX. 2023. Lightning creation games.
    43rd International Conference on Distributed Computing Systems. ICDCS: International
    Conference on Distributed Computing Systems vol. 2023, 603–613.'
  mla: Avarikioti, Zeta, et al. “Lightning Creation Games.” <i>43rd International
    Conference on Distributed Computing Systems</i>, vol. 2023, IEEE, 2023, pp. 603–13,
    doi:<a href="https://doi.org/10.1109/ICDCS57875.2023.00037">10.1109/ICDCS57875.2023.00037</a>.
  short: Z. Avarikioti, T. Lizurej, T. Michalak, M.X. Yeo, in:, 43rd International
    Conference on Distributed Computing Systems, IEEE, 2023, pp. 603–613.
conference:
  end_date: 2023-07-21
  location: Hong Kong, China
  name: 'ICDCS: International Conference on Distributed Computing Systems'
  start_date: 2023-07-18
date_created: 2023-11-05T23:00:54Z
date_published: 2023-10-11T00:00:00Z
date_updated: 2023-11-30T10:54:51Z
day: '11'
department:
- _id: KrPi
doi: 10.1109/ICDCS57875.2023.00037
external_id:
  arxiv:
  - '2306.16006'
intvolume: '      2023'
language:
- iso: eng
main_file_link:
- open_access: '1'
  url: https://doi.org/10.48550/arXiv.2306.16006
month: '10'
oa: 1
oa_version: Preprint
page: 603-613
publication: 43rd International Conference on Distributed Computing Systems
publication_identifier:
  eissn:
  - 2575-8411
  isbn:
  - '9798350339864'
publication_status: published
publisher: IEEE
quality_controlled: '1'
related_material:
  record:
  - id: '14506'
    relation: dissertation_contains
    status: public
scopus_import: '1'
status: public
title: Lightning creation games
type: conference
user_id: 2DF688A6-F248-11E8-B48F-1D18A9856A87
volume: 2023
year: '2023'
...