For our 6.857 (network security) final project, in a group project with Jamie Bloxham, Gina Yuan, and Justine Jang, we implemented probabilistic payments on the bitcoin lightning project. The bitcoin lightning is a peer-to-peer system that allows transactions between parties to be conducted off the main blockchain, reducing transaction costs.
Abstract With regular Bitcoin transactions, low-value, high-frequency payments are increasingly impractical due to increasingly significant mining fees that must be paid with each transaction. The Bitcoin Lightning Network is an extension to Bitcoin that allows two parties to create a payment channel between themselves, allowing payments to be made without committing many transactions to the blockchain, thus avoiding substantial mining fees. However, these payments still cannot be smaller than a satoshi, the smallest unit of Bitcoin. In this paper, we describe a scheme for probabilistic payments in the Lightning Network, which can be utilized to effectively make sub-satoshi microtransactions.
See my code and documentation here.
Our final writeup can be found here.