PISA: Arbitration Outsourcing for State Channels

Nov 1, 2018

Sprecher:innen

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PISA alleviates the "always online assumption" for all channel protocols and it is necessary for Raiden, L4, Perun, etc. State channels are a leading approach for improving the scalability of blockchains and cryptocurrencies. They allow a group of distrustful parties to optimistically execute an application-defined a program amongst themselves, while the blockchain serves as a backstop in case of a dispute or abort. This effectively bypasses the congestion, fees and performance constraints of the underlying blockchain in the typical case. However, state channels introduce a new and undesirable assumption that a party must remain on-line and synchronised with the blockchain at all times to defend against execution fork attacks. An execution fork can revert a state channel’s history, potentially causing financial damage to a party that is innocent except for having crashed. To provide security even to parties that may go offline for an extended period of time, we present Pisa, a protocol which enables such parties to delegate to a third party, called the custodian, to cancel execution forks on their behalf. To evaluate Pisa, we provide a proof-of-concept implementation for a simplified Sprites and we demonstrate that it is cost-efficient to deploy on the Ethereum network.

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