Scalable Exact Path Selection via Structure-Aware Search for Virtual Payment Channels

Abstract

Virtual Payment Channels (VPCs) enable efficient off-chain transactions in Payment Channel Networks (PCNs), but their performance depends on selecting high-quality underlying paths. Existing approaches either rely on simplified metrics or incur high computational cost. We study VPC path selection under generalized monotone metrics and propose a structure-aware exact solver based on quadtree search. By exploiting monotonicity and distance plateau properties, our method prunes large regions of the capacity-constrained search space while preserving optimality, significantly reducing the number of shortest-path computations. We further instantiate the framework with a composite metric that integrates economic cost and security risk, enabling flexible trade-offs across application scenarios. Experiments on synthetic graphs and real-world Lightning Network topologies (up to 12,552 nodes) show 2–5 orders of magnitude speedup over prior work, with consistent sub-100ms latency.