Payment Channel

Payment channels are off-chain transaction mechanisms designed to improve the scalability and efficiency of blockchain-based payment systems. Current research focuses on optimizing channel management, including predicting channel balances using machine learning models and developing dynamic fee-setting strategies through reinforcement learning, particularly deep reinforcement learning (DRL) algorithms. These advancements aim to enhance the performance and security of payment channel networks, addressing challenges like liquidity management and financial crime detection within a privacy-preserving framework, such as through federated learning. The resulting improvements have significant implications for the efficiency and security of decentralized financial systems.