Blockchain Based n-party Virtual Payment Model with Concurrent Execution

Blockchain technology has limitations in terms of scalability and throughput of transactions compared to other payment methods such as VISA and smart cards. But, Off-chain payment solves this issue by performing micro-transactions without communicating with the ledger. Similarly, Ethereum uses smart contracts to complete Off-chain transactions by constructing state and virtual channels. In this model, we develop an n-party payment system that uses state and virtual channels. The proposed model simultaneously executes different contract instances while they belong to other independent channels. Again, a virtual channel having n-intermediaries takes linear time to resolve payment channel disputes by transferring to the Blockchain. We introduce a global contract GSCC that solves the disputes in constant time in the worst case without including Blockchain. The dispute-solving process does not affect any intermediary node and ensures the intermediary is not losing coins. GSCC stores all the prior information of the active participants. But, GSCC has no communication overhead to other parties and ensures the execution of disputes with total conflict amount. The resultant model guarantees the execution of every contract, fair dispute resolution, and security balance. Our proposed theorems and zero-knowledge proof ensure the security of the n-party model.