1. Bolt: Anonymous Payment Channels for Decentralized Currencies 2017 Blockchains CCS Implementation PaymentChannels
    Matthew Green and Ian Miers
    [View PDF on acmccs.github.io]
    [Show BibTex Citation]

    @inproceedings{10.1145/3133956.3134093,
    author = {Green, Matthew and Miers, Ian},
    title = {Bolt: Anonymous Payment Channels for Decentralized Currencies},
    year = {2017},
    isbn = {9781450349468},
    publisher = {Association for Computing Machinery},
    address = {New York, NY, USA},
    url = {https://doi.org/10.1145/3133956.3134093},
    doi = {10.1145/3133956.3134093},
    booktitle = {Proceedings of the 2017 ACM SIGSAC Conference on Computer and Communications Security},
    pages = {473–489},
    numpages = {17},
    keywords = {off chain, bitcoin, payments, blockchain},
    location = {Dallas, Texas, USA},
    series = {CCS ’17}
    }

Bitcoin owes its success to the fact that transactions are transparently recorded in the blockchain, a global public ledger that removes the need for trusted parties. Unfortunately, recording every transaction in the blockchain causes privacy, latency, and scalability issues. Building on recent proposals for “micropayment channels” — two party associations that use the ledger only for dispute resolution — we introduce techniques for constructing anonymous payment channels. Our proposals allow for secure, instantaneous and private payments that substantially reduce the storage burden on the payment network. Specifically, we introduce three channel proposals, including a technique that allows payments via untrusted intermediaries. We build a concrete implementation of our scheme and show that it can be deployed via a soft fork to existing anonymous currencies such as ZCash.

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