Trading Stocks on Blocks - Engineering Decentralized Markets

  • Benedikt NotheisenEmail author
  • Magnus Gödde
  • Christof Weinhardt
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 10243)


As an infrastructure for economic systems, blockchain technology challenges the role of traditional intermediaries and enables the creation of novel market designs and value chains. We utilize this potential and design a decentralized market framework that allows users to trade complex financial assets, such as stocks, in an intermediary-free setup. Overall, our prototype implements the basic software structure of this market framework, illustrates the feasibility of decentralized market mechanisms, and highlights potential use cases as well as limitations.


Blockchain-based economic systems Market design Decentralized market platforms Securities trading 


  1. 1.
    Beck, R., Stenum Czepluch, J., Lollike, N., Malone, S.: Blockchain - the gateway to trust-free cryptographic transactions. In: ECIS Proceedings (2016)Google Scholar
  2. 2.
    Buterin, V.: Ethereum White Paper: A Next-Generation Smart Contract and Decentralized Application Platform (2013).
  3. 3.
    Duffie, D., Gârleanu, N., Pedersen, L.H.: Over-the-counter markets. Econometrica 73(6), 1815–1847 (2005)MathSciNetCrossRefzbMATHGoogle Scholar
  4. 4.
    Greiner, M., Hui, W.: Trust-free systems - a new research and design direction to handle trust-issues in P2P systems: the case of bitcoin. In: AMCIS Proceedings (2015)Google Scholar
  5. 5.
    Hevner, A.R., March, S.T., Park, J., Sudha, R.: Design science in information systems research. MIS Q. 1(28), 75–105 (2004)Google Scholar
  6. 6.
    Jentzsch, C.: Decentralized Autonomous Organization to Automate Governance (2016).
  7. 7.
    Lustig, C., Nardi, B.: Algorithmic authority: the case of bitcoin. In: HICSS Proceedings, pp. 743–752 (2015)Google Scholar
  8. 8.
    Peffers, K., Tuunanen, T., Rothenberger, M.A., Chatterjee, S.: A design science research methodology for information systems research. J. Manag. Inf. Syst. 24(3), 45–77 (2007)CrossRefGoogle Scholar
  9. 9.
    Wood, G.: Ethereum: A Secure Decentralised Generalised Transaction Ledger (2014).
  10. 10.
    Xu, X., Pautasso, C., Liming, Z., Gramoli, V., Ponomarev, A., Chen, S.: The blockchain as a software connector. In: 13th Working IEEE/IFIP Conference on Software Architecture (WICSA) (2016)Google Scholar

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Benedikt Notheisen
    • 1
    Email author
  • Magnus Gödde
    • 1
  • Christof Weinhardt
    • 1
  1. 1.Institute of Information Systems and Marketing, Information and Market EngineeringKarlsruhe Institute of TechnologyKarlsruheGermany

Personalised recommendations