Paper 2024/1022
Competitive Policies for Online Collateral Maintenance
Abstract
Layer-two blockchain protocols emerged to address scalability issues related to fees, storage cost, and confirmation delay of on-chain transactions. They aggregate off-chain transactions into a fewer on-chain ones, thus offering immediate settlement and reduced transaction fees. To preserve security of the underlying ledger, layer-two protocols often work in a collateralized model; resources are committed on-chain to backup off-chain activities. A fundamental challenge that arises in this setup is determining a policy for establishing, committing, and replenishing the collateral in a way that maximizes the value of settled transactions.
In this paper, we study this problem under two settings that model collateralized layer-two protocols. The first is a general model in which a party has an on-chain collateral
Metadata
- Available format(s)
-
PDF
- Category
- Foundations
- Publication info
- Preprint.
- Keywords
- Blockchain layer-two solutionsWalletsCollateral managementOnline 26 algorithmsCompetitive analysis
- Contact author(s)
-
ghada @ uconn edu
schen @ adelphi edu
acr @ uconn edu - History
- 2024-08-02: revised
- 2024-06-24: received
- See all versions
- Short URL
- https://ia.cr/2024/1022
- License
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CC BY
BibTeX
@misc{cryptoeprint:2024/1022, author = {Ghada Almashaqbeh and Sixia Chen and Alexander Russell}, title = {Competitive Policies for Online Collateral Maintenance}, howpublished = {Cryptology {ePrint} Archive, Paper 2024/1022}, year = {2024}, url = {https://eprint.iacr.org/2024/1022} }