publication . Preprint . 2018

On the Feasibility of Decentralized Derivatives Markets

Eskandari, Shayan; Clark, Jeremy; Sundaresan, Vignesh; Adham, Moe;
Open Access English
  • Published: 13 Feb 2018
Abstract
In this paper, we present Velocity, a decentralized market deployed on Ethereum for trading a custom type of derivative option. To enable the smart contract to work, we also implement a price fetching tool called PriceGeth. We present this as a case study, noting challenges in development of the system that might be of independent interest to whose working on smart contract implementations. We also apply recent academic results on the security of the Solidity smart contract language in validating our codes security. Finally, we discuss more generally the use of smart contracts in modelling financial derivatives.
Subjects
free text keywords: Computer Science - Emerging Technologies, Computer Science - Human-Computer Interaction, Computer Science - Computers and Society, Computer Science - Cryptography and Security
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18 references, page 1 of 2

1. N. Atzei, M. Bartoletti, and T. Cimoli. A survey of attacks on ethereum smart contracts. In POST, 2017.

2. J. Benet. Ipfs-content addressed, versioned, p2p le system. arXiv:1407.3561, 2014.

3. I. Bentov, A. Mizrahi, and M. Rosenfeld. Decentralized prediction market without arbiters. arXiv:1701.08421, 2017. [OpenAIRE]

4. V. Buterin et al. A next-generation smart contract and decentralized application platform, 2014.

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6. ConsenSys. Ethereum contract security techniques and tips. ConsenSys, 2016.

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8. S. Demian Lerner. Rootstock: Bitcoin powered smart contracts. Whitepaper, 2015.

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10. D. Irvine. Maidsafe distributed le system, 2010.

11. B. Kievit-Kylar, C. Horlacher, M. Godard, and C. Saucier. Equibit: A peer-to-peer electronic equity system. arXiv:1612.06953, 2016. [OpenAIRE]

12. L. Luu, D.-H. Chu, H. Olickel, P. Saxena, and A. Hobor. Making smart contracts smarter. In CCS, 2016.

13. S. Nakamoto. Bitcoin: A peer-to-peer electronic cash system, 2008.

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15. C. Reitwiessner. Security alert: Solidity variables can be overwritten in storage. Ethereum Blog, 2016.

18 references, page 1 of 2
Abstract
In this paper, we present Velocity, a decentralized market deployed on Ethereum for trading a custom type of derivative option. To enable the smart contract to work, we also implement a price fetching tool called PriceGeth. We present this as a case study, noting challenges in development of the system that might be of independent interest to whose working on smart contract implementations. We also apply recent academic results on the security of the Solidity smart contract language in validating our codes security. Finally, we discuss more generally the use of smart contracts in modelling financial derivatives.
Subjects
free text keywords: Computer Science - Emerging Technologies, Computer Science - Human-Computer Interaction, Computer Science - Computers and Society, Computer Science - Cryptography and Security
Download from
18 references, page 1 of 2

1. N. Atzei, M. Bartoletti, and T. Cimoli. A survey of attacks on ethereum smart contracts. In POST, 2017.

2. J. Benet. Ipfs-content addressed, versioned, p2p le system. arXiv:1407.3561, 2014.

3. I. Bentov, A. Mizrahi, and M. Rosenfeld. Decentralized prediction market without arbiters. arXiv:1701.08421, 2017. [OpenAIRE]

4. V. Buterin et al. A next-generation smart contract and decentralized application platform, 2014.

5. J. Clark, J. Bonneau, E. W. Felten, J. A. Kroll, A. Miller, and A. Narayanan. On decentralizing prediction markets and order books. In WEIS, 2014. [OpenAIRE]

6. ConsenSys. Ethereum contract security techniques and tips. ConsenSys, 2016.

7. P. Daian. Analysis of the dao exploit. Hacking, Distributed, 2016.

8. S. Demian Lerner. Rootstock: Bitcoin powered smart contracts. Whitepaper, 2015.

9. K. Finley. A 50 million dollar hack just showed that the dao was all too human. wired, 2016.

10. D. Irvine. Maidsafe distributed le system, 2010.

11. B. Kievit-Kylar, C. Horlacher, M. Godard, and C. Saucier. Equibit: A peer-to-peer electronic equity system. arXiv:1612.06953, 2016. [OpenAIRE]

12. L. Luu, D.-H. Chu, H. Olickel, P. Saxena, and A. Hobor. Making smart contracts smarter. In CCS, 2016.

13. S. Nakamoto. Bitcoin: A peer-to-peer electronic cash system, 2008.

14. okturtles. A blockchain-based dns, http server that xes https security, 2014.

15. C. Reitwiessner. Security alert: Solidity variables can be overwritten in storage. Ethereum Blog, 2016.

18 references, page 1 of 2
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