TY - GEN
T1 - Towards decentralized equilibrium asset trading based on blockchain
AU - Lei, Kai
AU - Du, Maoyu
AU - Yang, Liwei
AU - Liu, Jin
AU - Huang, Jiyue
AU - Xie, Danxia
AU - Xu, Kuai
N1 - Funding Information:
ACKNOWLEDGEMENT This work has been financially supported by Shenzhen Project under Grants No. ZDSYS201802051831427.
Funding Information:
This work has been financially supported by Shenzhen Project under Grants No. ZDSYS201802051831427.
Publisher Copyright:
© 2019 IEEE.
PY - 2019/8
Y1 - 2019/8
N2 - 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.
AB - 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.
KW - Blockchain
KW - Cross-value system
KW - Decentralized trading
KW - Equilibrium mechanism
KW - Smart contracts
UR - http://www.scopus.com/inward/record.url?scp=85073497422&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85073497422&partnerID=8YFLogxK
U2 - 10.1109/HPCC/SmartCity/DSS.2019.00202
DO - 10.1109/HPCC/SmartCity/DSS.2019.00202
M3 - Conference contribution
AN - SCOPUS:85073497422
T3 - 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
SP - 1461
EP - 1468
BT - 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
A2 - Xiao, Zheng
A2 - Yang, Laurence T.
A2 - Balaji, Pavan
A2 - Li, Tao
A2 - Li, Keqin
A2 - Zomaya, Albert
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 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
Y2 - 10 August 2019 through 12 August 2019
ER -