Author: Pedro Moreno Sanchez 2017-11-21 15:37:48
Published on: 2017-11-21T15:37:48+00:00
A new routing algorithm called SpeedyMurmurs has been developed by researchers from Purdue University and the University of Waterloo for decentralized payment networks like the Lightning Network. The Lightning Network is a proposed solution to the problem of finding routes across a vast network of millions or billions of nodes. It can scale easily to about 1 million channels even on limited devices, and upgrading to another protocol at a later point in time is simple.The algorithm assigns coordinates to nodes based on its position within a spanning tree created using Breadth-First Search, and then calculates a path from sender to receiver based on available funds, neighbors' coordinates, and closeness to the receiver. The routing information is updated locally by only those affected nodes in the network to account for topology changes. Simulation results show that SpeedyMurmurs finds paths twice as fast, reduces communication overhead by at least half, and maintains a similar or higher payment success ratio compared to other routing algorithms.Additionally, SpeedyMurmurs achieves value, sender, and receiver privacy. Centralizing flow through a small number of liquidity providers may seem economically probable, but there are counter-arguments to a hub-and-spoke network forming. Rebalancing is possible without off-chain channel rebalancing methods, and transaction fees are greatly reduced since only channel setup/tear down is required. By aggregating payments off-chain, the network reduces the load on the on-chain network sufficiently to allow timely on-chain settlements. Automations will take care of improving the network topology, encouraging participants to open channels that support the network as a whole, not just themselves.
Updated on: 2023-05-24T03:03:52.827337+00:00