A Game-Theoretic Analysis of Cross-ledger Swaps with Packetized Payments
We propose a game-theoretic framework to study the outcomes of packetized payments, a cross-ledger transaction protocol, with strategic and possibly malicious agents. We derive the transaction failure rate and demonstrate that without disciplinary mechanisms, packetized payments are likely to be incomplete. Our analysis suggests that collateral deposits can prevent malicious agents from taking advantage of the protocol. We further infer that the deposit amount should depend on the underlying asset price volatility or that it should be dynamically adjusted as the price changes.
WOS:000713005000016
2021-01-01
978-3-662-63958-0
978-3-662-63957-3
Berlin
Lecture Notes in Computer Science
12676
177
187
REVIEWED
Event name | Event place | Event date |
ELECTR NETWORK | Mar 05, 2021 | |