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Footprints on a Blockchain:<i>Trading and Information Leakage in Distributed Ledgers</i>

Rune Tevasvold Aune et al.

The Journal of Trading2018https://doi.org/10.3905/jot.2018.13.4.049article
ABDC C
Weight
0.34

What the paper says

This article examines information leakage when trading in distributed ledgers. We show how the lack of time priority in the period between the publication of a transaction and its validation by miners or designated participants can expose a transaction’s footprint to the market, resulting in potential front-running and manipulation. We propose a cryptographic approach for solving information leakage problems in distributed ledgers that relies on using a hash (or fingerprint) to secure time priority, followed by a second communication that reveals more features of the underlying market transaction—in effect using a transaction’s fingerprint to hide its footprint. Solving the information leakage problem greatly expands the potential applications of private distributed ledger technology to include trading. <b>TOPICS:</b>Quantitative methods, legal/regulatory/public policy

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https://doi.org/https://doi.org/10.3905/jot.2018.13.4.049

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@article{rune2018,
  title        = {{Footprints on a Blockchain:<i>Trading and Information Leakage in Distributed Ledgers</i>}},
  author       = {Rune Tevasvold Aune et al.},
  journal      = {The Journal of Trading},
  year         = {2018},
  doi          = {https://doi.org/https://doi.org/10.3905/jot.2018.13.4.049},
}

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Footprints on a Blockchain:<i>Trading and Information Leakage in Distributed Ledgers</i>

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Evidence weight

0.34

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.