Paper 2022/744

MoNet: A Fast Payment Channel Network for Scriptless Cryptocurrency Monero

Abstract

We propose MoNet, the first bi-directional payment channel network with unlimited lifetime for Monero. It is fully compatible with Monero without requiring any modification of the current Monero blockchain. MoNet preserves transaction fungibility, i.e., transactions over MoNet and Monero are indistinguishable, and guarantees anonymity of Monero and MoNet users by avoiding any potential privacy leakage introduced by the new payment channel network. We also propose a new crypto primitive, named Verifiable Consecutive One-way Function (VCOF). It allows one to generate a sequence of statement-witness pairs in a consecutive and verifiable way, and these statement-witness pairs are one-way, namely it is easy to compute a statement-witness pair by knowing any of the pre-generated pairs, but hard in an opposite flow. By using VCOF, a signer can produce a series of consecutive adaptor signatures CAS. We further propose the generic construction of consecutive adaptor signature as an important building block of MoNet. We develop a proof-of-concept implementation for MoNet, and our evaluation shows that MoNet can reach the same transaction throughput as Lightning Network, the payment channel network for Bitcoin. Moreover, we provide a security analysis of MoNet under the Universal Composable (UC) security framework.