Blockchain-Based Automated Market Makers for a Decentralized Stock Exchange

被引:4
|
作者
Dodmane, Radhakrishna [1 ]
Raghunandan, K. R. [1 ]
Rao, N. S. Krishnaraj [2 ]
Kallapu, Bhavya [3 ]
Shetty, Surendra [4 ]
Aslam, Muhammad [5 ,6 ]
Jilani, Syeda Fizzah [7 ]
机构
[1] Nitte Deemed Univ, NMAM Inst Technol, Dept Comp Sci & Engn, Mangaluru 574110, Karnataka, India
[2] Nitte Deemed Univ, NMAM Inst Technol, Dept Informat Sci & Engn, Mangaluru 574110, Karnataka, India
[3] Nitte Deemed Univ, NMAM Inst Technol, Dept Math, Mangaluru 574110, Karnataka, India
[4] Nitte Deemed Univ, NMAM Inst Technol, Dept Master Comp Applicat, Mangaluru 574110, Karnataka, India
[5] Univ West Scotland, Sch Comp Engn & Phys Sci, Paisley PA1 2BE, Scotland
[6] Wuxi Taihu Univ, Scotland Acad, Wuxi 214063, Peoples R China
[7] Aberystwyth Univ, Dept Phys, Phys Sci Bldg, Aberystwyth SY23 3BZ, Wales
关键词
centralized financial markets; liquidity; information asymmetry; decentralized finance (DeFi); PoS; PoW; MEDIA;
D O I
10.3390/info14050280
中图分类号
TP [自动化技术、计算机技术];
学科分类号
0812 ;
摘要
The advancements in communication speeds have enabled the centralized financial market to be faster and more complex than ever. The speed of the order execution has become exponentially faster when compared to the early days of electronic markets. Though the transaction speed has increased, the underlying architecture or models behind the markets have remained the same. These models come with their own disadvantages. The disadvantages are usually faced by non-institutional or small traders. The bigger players, such as financial institutions, have an advantage over smaller players because of factors such as information asymmetry and access to better infrastructure, which give them an advantage in terms of the speed of execution. This makes the centralized stock market an uneven playing field. This paper discusses the limitations of centralized financial markets, particularly the disadvantage faced by non-institutional or small traders due to information asymmetry and better infrastructure access by financial institutions. The authors propose the usage of blockchain technology and the data highway protocol to create a decentralized stock exchange that can potentially eliminate these disadvantages. The data highway protocol is used to generate new blocks with a flexible finality condition that allows for the consensus mechanism to configure security thresholds more freely. The proposed framework is compared with existing frameworks to confirm its effectiveness and identify areas that require improvement. The evaluation of the proposed approach showed that the improved highway protocol boosted the transaction rate compared to the other two mechanisms (PoS and PoW). Specifically, the transaction rate of the proposed model was found to be 2.2 times higher than that of PoS and 12 times higher than that of the PoW consensus model.
引用
收藏
页数:18
相关论文
共 50 条
  • [1] Consortium Blockchain-Based Decentralized Stock Exchange Platform
    Al-Shaibani, Hamed
    Lasla, Noureddine
    Abdallah, Mohamed
    [J]. IEEE ACCESS, 2020, 8 : 123711 - 123725
  • [2] Dynamic Automated Market Makers for Decentralized Cryptocurrency Exchange
    Krishnamachari, Bhaskar
    Feng, Qi
    Grippo, Eugenio
    [J]. 2021 IEEE INTERNATIONAL CONFERENCE ON BLOCKCHAIN AND CRYPTOCURRENCY (ICBC), 2021,
  • [3] Guided, Automated Testing of Blockchain-based Decentralized Applications
    Gao, Jianbo
    [J]. 2019 IEEE/ACM 41ST INTERNATIONAL CONFERENCE ON SOFTWARE ENGINEERING: COMPANION PROCEEDINGS (ICSE-COMPANION 2019), 2019, : 138 - 140
  • [4] Towards Automated Testing of Blockchain-based Decentralized Applications
    Gao, Jianbo
    Liu, Han
    Li, Yue
    Liu, Chao
    Yang, Zhiqiang
    Li, Qingshan
    Guan, Zhi
    Chen, Zhong
    [J]. 2019 IEEE/ACM 27TH INTERNATIONAL CONFERENCE ON PROGRAM COMPREHENSION (ICPC 2019), 2019, : 294 - 299
  • [5] Towards Automated Migration for Blockchain-based Decentralized Application
    Xu, Xiufeng
    [J]. 2020 ACM/IEEE 42ND INTERNATIONAL CONFERENCE ON SOFTWARE ENGINEERING: COMPANION PROCEEDINGS (ICSE-COMPANION 2020), 2020, : 155 - 157
  • [6] A Decentralized Blockchain-Based Energy Market for Citizen Energy Communities
    Mousavi, Peyman
    Ghazizadeh, Mohammad Sadegh
    Vahidinasab, Vahid
    [J]. INVENTIONS, 2023, 8 (04)
  • [7] A Decentralized Oracle Architecture for a Blockchain-Based IoT Global Market
    Gigli, Lorenzo
    Zyrianoff, Ivan
    Montori, Federico
    Aguzzi, Cristiano
    Roffia, Luca
    Di Felice, Marco
    [J]. IEEE COMMUNICATIONS MAGAZINE, 2023, 61 (08) : 86 - 92
  • [8] Transactive Green Energy Exchange Market Blockchain-based
    Boumaiza, Ameni
    Sanfilippo, Antonio
    [J]. 2022 IEEE 17TH CONFERENCE ON INDUSTRIAL ELECTRONICS AND APPLICATIONS (ICIEA), 2022, : 185 - 188
  • [9] Blockchain-based Automated Formal Model for Smart Market System
    Afzaal, Muhammad Fayez
    Rehman, Aniqa
    Latif, Saba
    Zafar, Nazir Ahmad
    [J]. PROCEEDINGS OF 2021 INTERNATIONAL BHURBAN CONFERENCE ON APPLIED SCIENCES AND TECHNOLOGIES (IBCAST), 2021, : 395 - 400
  • [10] Blockchain-Based Decentralized Application: A Survey
    Zheng, Peilin
    Jiang, Zigui
    Wu, Jiajing
    Zheng, Zibin
    [J]. IEEE OPEN JOURNAL OF THE COMPUTER SOCIETY, 2023, 4 : 121 - 133