PT  - JOURNAL ARTICLE
AU  - Rune Tevasvold Aune
AU  - Adam Krellenstein
AU  - Maureen O’Hara
AU  - Ouziel Slama
TI  - Practical Applications of Footprints on a Blockchain: <em>Trading and Information Leakage in Distributed Ledgers</em>
AID  - 10.3905/pa.6.2.294
DP  - 2018 Oct 31
TA  - Practical Applications
PG  - 1--5
VI  - 6
IP  - 2
4099  - https://pm-research.com/content/6/2/1.12.short
4100  - https://pm-research.com/content/6/2/1.12.full
AB  - In Footprints on a Blockchain: Trading and Information Leakage in Distributed Ledgers, from the Summer 2017 issue of The Journal of Trading, authors Rune Tevasvold Aune, Adam Krellenstein (both of Symbiont) Maureen O’Hara (Cornell University School of Management) and Ouziel Slama (formerly of Symbiont and now with Legolas), describe a creative solution to a potential limitation to the use of distributed ledger technology in financial market contexts. This complication relates to the disclosure of proprietary trading information that could be used to “front-run” certain investors. The authors outline a solution to this problem, which involves the use of a cryptographic hash to indicate prioritization of transactions. This solution could facilitate widespread usage of blockchain technology in a variety of financial contexts.TOPICS: Quantitative methods, exchanges/markets/clearinghouses