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Perun: Virtual Payment Hubs over Cryptocurrencies

The Perun paper proposes a framework for ‘virtual payment hubs’ that allow users to open payment channels between one another without needing a direct, pre-exis

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Abstract

The Perun paper proposes a framework for ‘virtual payment hubs’ that allow users to open payment channels between one another without needing a direct, pre-existing on-chain channel between them. By leveraging virtual channel technology, the protocol enables users to establish transient, off-chain communication channels through intermediary hubs, significantly reducing the frequency of on-chain interactions. The authors introduce a formal security model to prove the safety and liveness of these virtual channels, ensuring that funds remain secure even if intermediaries act dishonestly. This research is a significant contribution to the field of state channel networks, providing a robust mathematical foundation for capital-efficient, high-frequency micropayments. By optimizing channel setup and settlement procedures, Perun advances the state of the art in off-chain network scalability, offering a flexible and modular approach to building interconnected payment systems. Authors: Stefan Dziembowski, Sebastian Faust, Kristina Hostáková Publication: IACR ePrint Archive Publication date: 2019-01-01

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Key findings

  • Introduced a protocol for virtual channels over intermediary hubs.
  • Reduced the need for direct on-chain channel openings.
  • Provided formal security proofs for state channel protocols.
  • Enabled more capital-efficient micropayment networks.

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Citation

Stefan Dziembowski, Sebastian Faust, Kristina Hostáková (2019). Perun: Virtual Payment Hubs over Cryptocurrencies. IACR ePrint Archive. https://eprint.iacr.org/2017/635.pdf
Canonical knowledge ID: research:perun-virtual-payment-hubs-over-cryptocurrencies