IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v48y2024i2s0308596123002070.html
   My bibliography  Save this article

A centrality analysis of the Lightning Network

Author

Listed:
  • Zabka, Philipp
  • Förster, Klaus-T.
  • Decker, Christian
  • Schmid, Stefan

Abstract

Blockchain technology has a huge impact on our digital society by enabling a more decentralized economy and policy making. This decentralization is also pivotal in payment Payment channel networks (PCNs), including the Lightning Network, have emerged as a promising solution to the scalability challenges that many blockchain-based cryptocurrencies, like Bitcoin, grapple with. These PCNs, while innovative, also inherit the rigorous dependability demands of the blockchain. A pivotal aspect of this dependability is the need for a high degree of decentralization, essential for mitigating liquidity bottlenecks and on-path attacks.

Suggested Citation

  • Zabka, Philipp & Förster, Klaus-T. & Decker, Christian & Schmid, Stefan, 2024. "A centrality analysis of the Lightning Network," Telecommunications Policy, Elsevier, vol. 48(2).
    • Handle: RePEc:eee:telpol:v:48:y:2024:i:2:s0308596123002070
    DOI: 10.1016/j.telpol.2023.102696
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596123002070
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2023.102696?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ben Lockwood, 2002. "Distributive Politics and the Costs of Centralization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(2), pages 313-337.
    2. Stefano Martinazzi & Andrea Flori, 2020. "The evolving topology of the Lightning Network: Centralization, efficiency, robustness, synchronization, and anonymity," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-18, January.
    3. Bardhan, Pranab & Mookherjee, Dilip, 1998. "Expenditure Decentralization and the Delivery of Public Services in Developing Countries," Center for International and Development Economics Research (CIDER) Working Papers 233623, University of California-Berkeley, Department of Economics.
    4. Yang-Yu Liu & Jean-Jacques Slotine & Albert-László Barabási, 2011. "Controllability of complex networks," Nature, Nature, vol. 473(7346), pages 167-173, May.
    5. István András Seres & László Gulyás & Dániel A. Nagy & Péter Burcsi, 2020. "Topological Analysis of Bitcoin’s Lightning Network," Springer Proceedings in Business and Economics, in: Panos Pardalos & Ilias Kotsireas & Yike Guo & William Knottenbelt (ed.), Mathematical Research for Blockchain Economy, pages 1-12, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabio Fiorillo & Agnese Sacchi, 2012. "The Political Economy of the Standard Level of Services: The Role of Income Distribution," CESifo Working Paper Series 3696, CESifo.
    2. Gijs Roelofs & Daniel Vuuren, 2017. "The Decentralization of Social Assistance and the Rise of Disability Insurance Enrolment," De Economist, Springer, vol. 165(1), pages 1-21, March.
    3. Francisco Silva, 2016. "Should the Government Provide Public Goods if it Cannot Commit?," Documentos de Trabajo 477, Instituto de Economia. Pontificia Universidad Católica de Chile..
    4. Maria EL KHDARI & Babacar SARR, 2018. "Decentralization, spending efficiency and pro-poor outcomes in Morocco," Working Papers 201805, CERDI.
    5. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    6. Emanuele Bracco & Alberto Brugnoli, 2012. "Runoff vs. plurality," Working Papers 23767067, Lancaster University Management School, Economics Department.
    7. Federico Boffa & Amedeo Piolatto & Giacomo A. M. Ponzetto, 2016. "Political Centralization and Government Accountability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(1), pages 381-422.
    8. Andreas Koulouris & Ioannis Katerelos & Theodore Tsekeris, 2013. "Multi-Equilibria Regulation Agent-Based Model of Opinion Dynamics in Social Networks," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 11(1), pages 51-70.
    9. He, He & Yang, Bo & Hu, Xiaoming, 2016. "Exploring community structure in networks by consensus dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 450(C), pages 342-353.
    10. Ellinas, Christos & Allan, Neil & Johansson, Anders, 2016. "Project systemic risk: Application examples of a network model," International Journal of Production Economics, Elsevier, vol. 182(C), pages 50-62.
    11. Yang, Hyeonchae & Jung, Woo-Sung, 2016. "Structural efficiency to manipulate public research institution networks," Technological Forecasting and Social Change, Elsevier, vol. 110(C), pages 21-32.
    12. Meng, Tao & Duan, Gaopeng & Li, Aming & Wang, Long, 2023. "Control energy scaling for target control of complex networks," Chaos, Solitons & Fractals, Elsevier, vol. 167(C).
    13. Kim, Youngran, 2018. "Privatization and school practices: Evidence from Seoul’s high school choice policy," International Journal of Educational Development, Elsevier, vol. 62(C), pages 322-332.
    14. Gino Gancia & Giacomo A M Ponzetto & Jaume Ventura, 2022. "Globalization and Political Structure," Journal of the European Economic Association, European Economic Association, vol. 20(3), pages 1276-1310.
    15. Tao Jia & Robert F Spivey & Boleslaw Szymanski & Gyorgy Korniss, 2015. "An Analysis of the Matching Hypothesis in Networks," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-12, June.
    16. Raúl A. Ponce Rodríguez & Ikuho Kochi & Luis E. Gutiérrez Casas, 2015. "The structure of political power and redistribution in economies with multiple governments," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 30(2), pages 269-303.
    17. Hörcher, Daniel & De Borger, Bruno & Graham, Daniel J., 2023. "Subsidised transport services in a fiscal federation: Why local governments may be against decentralised service provision," Economics of Transportation, Elsevier, vol. 34(C).
    18. Divakaruni, Anantha & Zimmerman, Peter, 2023. "The Lightning Network: Turning Bitcoin into money," Finance Research Letters, Elsevier, vol. 52(C).
    19. Das Gupta, Monica & Grandvoinnet, Helene & Romani, Mattia, 2000. "State-community synergies in development : laying the basis for collective action," Policy Research Working Paper Series 2439, The World Bank.
    20. Lisa Grazzini & Alessandro Petretto, 2012. "Voting on devolution in a federal country with a bicameral national system," Economics of Governance, Springer, vol. 13(1), pages 51-72, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:48:y:2024:i:2:s0308596123002070. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.