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BLN: A LAYER-2 Framework for Fast Bitcoin Transaction Processing

Date

2023-04-11

Authors

Wang, Yahu

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Abstract

Lightning Network (LN) is a layer-2 protocol that enables fast Bitcoin transaction processing. However, it only works well for peer-to-peer micropayments, namely, small amount payments between individual parties. In this thesis, we propose an LN-based framework for both peer-to-peer and customer-to-business payments, the Business-oriented Layer-2 Network (BLN). With BLN, Bitcoin transaction processing scales much better. Our experimental results indicate that BLN outperforms LN in terms of transaction failure rate, transaction fee, and processing time.

Description

The purpose of this thesis is to propose a new trading model based on the existing structure of Bitcoin and the Lightning Network. We want to solve the problem that the Lightning Network does not support large transactions and the inequality between the two parties in transactions. Additionally, we also aim to extend the transaction scenario to online shopping, rather than just in-store purchases.

Keywords

Bitcoin, Lightning Network, Redis

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