Sprites and State Channels: Payment Networks that Go Faster than Lightning
Andrew Miller, Iddo Bentov, Ranjit Kumaresan, Patrick McCorry
Abstract
This paper presents 'Sprites,' an innovative protocol designed to improve payment channel networks by enabling rapid, multi-hop payments with strong safety guarantees. The authors identify challenges in existing lightning-style networks, such as the need for long-term lockups of capital and complex transaction handling. Sprites introduces the use of virtual channels and a novel time-based locking mechanism that allows for atomic multi-hop payments without requiring all intermediate nodes to be online simultaneously for the duration of the payment process. By reducing the reliance on specific timing and synchronization constraints found in earlier state channel designs, the protocol achieves greater efficiency and usability. The research provides critical insights into the optimization of off-chain payment structures, addressing fundamental limitations in pathfinding, settlement speed, and overall network capital efficiency within decentralized finance.
Key Findings
- 1Introduced a new state channel mechanism for faster multi-hop payments.
- 2Mitigated the 'long-term lockup' problem found in earlier payment channels.
- 3Improved the efficiency and usability of off-chain transaction settlement.
- 4Optimized timing and synchronization for non-interactive atomic swaps.
Topics
Citation
BibTeX
@misc{spritesand2017,
title = {Sprites and State Channels: Payment Networks that Go Faster than Lightning},
author = {Andrew Miller and Iddo Bentov and Ranjit Kumaresan and Patrick McCorry},
year = {2017},
howpublished = {\url{https://arxiv.org/pdf/1702.05812.pdf}},
}Knowledge Explorer
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