Block Auction: A General Blockchain Protocol for Privacy-Preserving and Verifiable Periodic Double Auctions
We use blockchain technology to tackle the problem of securing periodic double auctions for financial 'dark pool' trading so that the privacy of pre-trade order information is preserved, and the behaviour of the auction operator can be verified. A smart contract is used as a public audit trail without revealing the order intention of traders. Auction matching is performed off-chain, allowing alternative auction mechanisms to be used without altering the smart contract code. A full system implementation is deployed on the Harmony blockchain, and comparative evaluation of the protocol demonstrates some clear advantages over the closest published alternative.
Results on Harmony Explorer for:
10 clients https://explorer.pops.one/address/0xc7fce7b6048b2fce3d8617cbbd5f86562bf430c1
100 clients https://explorer.pops.one/address/0xfccbac67efc05d0f7af60eabe3a8a305cb90e203
1000 clients https://explorer.pops.one/address/0x0af2ab50df46c1bdfcb0b165abf9e774751de2f6