  Resource-constrained devices are unable to maintain a full copy of the
Bitcoin Blockchain in memory. This paper proposes a bidirectional payment
channel framework for IoT devices. This framework utilizes Bitcoin
Lightning-Network-like payment channels with low processing and storage
requirements. This protocol enables IoT devices to open and maintain payment
channels with traditional Bitcoin nodes without a view of the blockchain.
Unlike existing solutions, it does not require a trusted third party to
interact with the blockchain nor does it burden the peer-to-peer network in the
way SPV clients do. The contribution of this paper includes a secure and
crypto-economically fair protocol for bidirectional Bitcoin payment channels.
In addition, we demonstrate the security and fairness of the protocol by
formulating it as a game in which the equilibrium is reached when all players
follow the protocol.
