Towards decentralized equilibrium asset trading based on blockchain

Kai Lei, Maoyu Du, Liwei Yang, Jin Liu, Jiyue Huang, Danxia Xie, Kuai Xu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The last decade has witnessed the explosive growth of digital tokens and cryptocurrencies including Bitcoin, reward programs and various tokens on Ethereum. However, trading these heterogeneous and non-financial digital assets often encounters substantial liquidity barriers due to the lack of interoperable standards, and faces an equilibrium dilemma in pricing strategies with a risk of market disequilibrium. In this sense, we introduce a novel decentralized equilibrium trading mechanism for assets across value systems with a combination of blockchain and economic theories that optimizes storage, equilibrium, and circulation of assets. To demonstrate the practical feasibility of the proposed mechanism, we design, implement, and evaluate an end-to-end prototype system on Ethereum platform with carefully-crafted smart contracts. Our extensive experimental evaluations and the trading simulation suggest that the proposed mechanism settles exchanges and tradings among different assets with equilibrium prices in a decentralized fashion, providing both practical and theoretical foundation for the autonomous equilibrium of asset trading market without human interventions.

Original languageEnglish (US)
Title of host publicationProceedings - 21st IEEE International Conference on High Performance Computing and Communications, 17th IEEE International Conference on Smart City and 5th IEEE International Conference on Data Science and Systems, HPCC/SmartCity/DSS 2019
EditorsZheng Xiao, Laurence T. Yang, Pavan Balaji, Tao Li, Keqin Li, Albert Zomaya
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1461-1468
Number of pages8
ISBN (Electronic)9781728120584
DOIs
StatePublished - Aug 2019
Event21st IEEE International Conference on High Performance Computing and Communications, 17th IEEE International Conference on Smart City and 5th IEEE International Conference on Data Science and Systems, HPCC/SmartCity/DSS 2019 - Zhangjiajie, China
Duration: Aug 10 2019Aug 12 2019

Publication series

NameProceedings - 21st IEEE International Conference on High Performance Computing and Communications, 17th IEEE International Conference on Smart City and 5th IEEE International Conference on Data Science and Systems, HPCC/SmartCity/DSS 2019

Conference

Conference21st IEEE International Conference on High Performance Computing and Communications, 17th IEEE International Conference on Smart City and 5th IEEE International Conference on Data Science and Systems, HPCC/SmartCity/DSS 2019
CountryChina
CityZhangjiajie
Period8/10/198/12/19

Keywords

  • Blockchain
  • Cross-value system
  • Decentralized trading
  • Equilibrium mechanism
  • Smart contracts

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Networks and Communications
  • Computer Science Applications
  • Hardware and Architecture
  • Information Systems
  • Information Systems and Management
  • Energy Engineering and Power Technology

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  • Cite this

    Lei, K., Du, M., Yang, L., Liu, J., Huang, J., Xie, D., & Xu, K. (2019). Towards decentralized equilibrium asset trading based on blockchain. In Z. Xiao, L. T. Yang, P. Balaji, T. Li, K. Li, & A. Zomaya (Eds.), Proceedings - 21st IEEE International Conference on High Performance Computing and Communications, 17th IEEE International Conference on Smart City and 5th IEEE International Conference on Data Science and Systems, HPCC/SmartCity/DSS 2019 (pp. 1461-1468). [8855688] (Proceedings - 21st IEEE International Conference on High Performance Computing and Communications, 17th IEEE International Conference on Smart City and 5th IEEE International Conference on Data Science and Systems, HPCC/SmartCity/DSS 2019). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/HPCC/SmartCity/DSS.2019.00202