Proactive Rebalancing Algorithm in the Lightning Network | Effectiveness Simulation under Partial Participation

Abstract

Previous research presented a solution for the pathfinding problem in a privacy-aware payment channel network. The proposed solution includes a rebalancing protocol which the nodes of the network should follow to achieve a higher balancedness for both themselves and the entire network. These payment channel networks are decentralised by nature and protocol changes can not be forced upon the node operators. Therefore, the question arises on how effective this protocol change will be assuming only partial participation of nodes.