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Decentralizing Watchtowers for Payment Channels using IPFS

Bonisch, Hannes 1; Grundmann, Matthias ORCID iD icon 1
1 Institut für Informationssicherheit und Verlässlichkeit (KASTEL), Karlsruher Institut für Technologie (KIT)


Payment channels have been proposed as a way to improve the scalability of blockchains such as Bitcoin. However, payment channel protocols require that participating parties watch the blockchain regularly for new transactions. If a party observes, in a given period of time, a fraudulent transaction that closes the payment channel in an outdated state, the fraudulent transaction can be revoked. Previous work has proposed to outsource this task to a third party, a so called watchtower. A user of a payment channel employs a dedicated watchtower and sends the data to the watchtower that the watchtower requires to revoke fraudulent transactions. In this paper, we replace the strict binding of a user to a watchtower by a decentralized approach for watchtowers that requires no direct interaction between a party of a payment channel and the watchtower. This decentralized approach uses IPFS to publicly store the information required by a watchtower. With this approach, anyone can detect and revoke a fraud by watching the blockchain and reading a file from IPFS that contains information for each outdated commitment transaction. A reward for successful revocations can be used as incentive.

Postprint §
DOI: 10.5445/IR/1000153435
Veröffentlicht am 17.01.2023
Cover der Publikation
Zugehörige Institution(en) am KIT Institut für Informationssicherheit und Verlässlichkeit (KASTEL)
Kompetenzzentrum für angewandte Sicherheitstechnologie (KASTEL)
Publikationstyp Proceedingsbeitrag
Publikationsjahr 2022
Sprache Englisch
Identifikator ISBN: 978-1-66548-879-2
ISSN: 2332-5666
KITopen-ID: 1000153435
HGF-Programm 46.23.01 (POF IV, LK 01) Methods for Engineering Secure Systems
Weitere HGF-Programme 46.23.03 (POF IV, LK 01) Engineering Security for Mobility Systems
Erschienen in 2022 IEEE 42nd International Conference on Distributed Computing Systems Workshops (ICDCSW)
Veranstaltung 42th International Conference on Distributed Computing Systems (ICDCS 2022), Bologna, Italien, 10.07.2022 – 13.07.2022
Verlag Institute of Electrical and Electronics Engineers (IEEE)
Seiten 27–32
Serie Proceedings International Conference on Distributed Computing Systems. Workshops.
Vorab online veröffentlicht am 28.11.2022
Nachgewiesen in Scopus
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