HyperChannel: A Secure Layer-2 Payment Network for Large-Scale IoT Ecosystem

For the future large-scale IoT ecosystem, the number and frequency of micro-payments will increase dramatically. However, the mainstream of cryptocurrencies such as Bitcoin and Ethereum fail to meet the need for a large-scale IoT ecosystem due to limit transaction throughput and high transaction fee. Although Layer-2 solutions such as Lightning Network (LN) increases the throughput of cryptocurrencies by allowing participants to conduct off-chain transactions, LN still suffers from two main limitations: participants need to access the Blockchain within a short bounded time, and a payment channel can only accommodate two participants. To overcome these limitations, we propose HyperChannel, a novel distributed layer-2 payment network designed specifically for the IoT ecosystem which outsources the transaction processing task safely to a group of Intel Software Guard Extensions (SGXs) run by for-profit selfish third parties. Clients such as IoT devices and IoT service providers who often trade with each other will be assigned to a channel to conduct high-frequency in-channel transactions while being allowed to conduct crosschannel transactions in a fee-saving fashion. Compared with existing SGX-based layer-2 payment framework, HyperChannel achieves maximum throughput, addresses both limitations of LN, and further lightens the burden of participants so that IoT devices can conduct layer-2 transactions without running an SGX by themselves.