BLN: A LAYER-2 Framework for Fast Bitcoin Transaction Processing

Abstract

Lightning Network (LN) is a layer-2 protocol that enables fast Bitcoin transaction processing. However, it only works well for peer-to-peer micropayments, namely, small amount payments between individual parties. In this thesis, we propose an LN-based framework for both peer-to-peer and customer-to-business payments, the Business-oriented Layer-2 Network (BLN). With BLN, Bitcoin transaction processing scales much better. Our experimental results indicate that BLN outperforms LN in terms of transaction failure rate, transaction fee, and processing time.