Solving the Buyer and Seller's Dilemma: A Dual-Deposit Escrow Smart Contract for Provably Cheat-Proof Delivery and Payment for a Digital Good without a Trusted Mediator

Asgaonkar, Aditya; Krishnamachari, Bhaskar

doi:10.48550/arxiv.1806.08379

Cited by 2 publications

(5 citation statements)

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“…The traditional method for mitigating credit risk is depositing cash collateral in, or purchasing a letter of credit from a financial institution, such as a commercial bank. These methods expose the contracting parties to margining, third-party, legal, and process risks [27].…”

Section: B Autonomous Collateralization Mechanismmentioning

confidence: 99%

Implementing Contract-for-Difference Arrangements for Hedging Electricity Price Risks of Renewable Generators on a Blockchain Marketplace

Alao

Cuffe

2023

IEEE Trans. Ind. Inf.

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The dynamic nature of competitive electricity markets means that participants often resort to some form of derivative financial instrument. One such instrument is a Contract-for-Difference (CFD), usually available to renewable generators in certain electricity markets to enable them to hedge their price risk. Embracing CFD presents new risks such as counterparty credit, margining, third-party, legal, and process risks. Derivative instruments existing on blockchains have recently demonstrated potential as suitable hedging tools for minimizing the risks of renewable generators. The present manuscript applies this concept for the first time to hedge the price risk of renewable generators by implementing a novel decentralized finance instrument, an Ethereum blockchain marketplace governed by a smart contract to mediate between stakeholders mutually enrolled in bilateral CFD arrangements. The employed structure mitigates the underlying risks of traditional arrangements, underpinned by a suite of autonomous mechanisms.

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Section: B Autonomous Collateralization Mechanismmentioning

confidence: 99%

Implementing Contract-for-Difference Arrangements for Hedging Electricity Price Risks of Renewable Generators on a Blockchain Marketplace

Alao

Cuffe

2023

IEEE Trans. Ind. Inf.

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“…The extensive-form game has been also adopted for analyzing the security issues within the blockchain. It was used to analyze the selection of fork chain [39], determination of forming the collusion [40], and cheating among the blockchain users [41].…”

Section: B Extensive-form Gamementioning

confidence: 99%

“…The underlying blockchain technology of bitcoin is now being applied to many new scenarios such as edge networks, cloud computing, e-business and information sharing [13], [97], [98]. In particular, a series of security problems regarding false data sharing [40], [66], [67], distrustful goods trading [34], [41] and cyber-insurance [44], can be resolved by using a blockchain-based scheme.…”

Section: Other Security Issuesmentioning

confidence: 99%

“…2) Distrustful Goods Trading: The distrust of goods trading can also be mitigated by applying blockchain based smart contract as presented in [41]. The proposed smart contract involves two participants, i.e., one seller and one buyer.…”

Section: Other Security Issuesmentioning

confidence: 99%

“…3) Cyber-Insurance: Different from suppressing the attack motivation as presented in [34], [40], [41], [66], [67], the authors in [44] propose a cyber-insurance scheme [102] to compensate for the losses of the attacked blockchain participants. The model includes multiple blockchain users, one blockchain provider, and one cyber insurer.…”

Section: Other Security Issuesmentioning

confidence: 99%

See 2 more Smart Citations

A Survey on Applications of Game Theory in Blockchain

Liu,

Luong,

Wang

et al. 2019

Preprint

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In the past decades, the blockchain technology has attracted tremendous attention from both academia and industry. The popularity of blockchain networks was originated from a crypto-currency to serve as a decentralized and tamperproof transaction data ledger. Nowadays, blockchain as the key framework in the decentralized public data-ledger, has been applied to a wide range of scenarios far beyond crypto-currencies, such as Internet of Things (IoT), healthcare, and insurance. This survey aims to fill the gap between the large number of studies on blockchain network, where game theory emerges as an analytical tool, and the lack of a comprehensive survey on the game theoretical approaches applied in blockchain related issues. In this paper, we review game models proposed to address common issues in the blockchain network. The issues include security issues, e.g., selfish mining, majority attack and Denial of Service (DoS) attack, issues regard mining management, e.g., computational power allocation, reward allocation, and pool selection, as well as issues regarding blockchain economic and energy trading. Additionally, we discuss advantages and disadvantages of these selected game models and solutions. Finally, we highlight important challenges and future research directions of applying game theoretical approaches to incentive mechanism design, and the combination of blockchain with other technologies.

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Solving the Buyer and Seller's Dilemma: A Dual-Deposit Escrow Smart Contract for Provably Cheat-Proof Delivery and Payment for a Digital Good without a Trusted Mediator

Cited by 2 publications

References 0 publications

Implementing Contract-for-Difference Arrangements for Hedging Electricity Price Risks of Renewable Generators on a Blockchain Marketplace

Implementing Contract-for-Difference Arrangements for Hedging Electricity Price Risks of Renewable Generators on a Blockchain Marketplace

A Survey on Applications of Game Theory in Blockchain

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