Enabling High-Frequency Trading with Near-Instant, Trustless Cross-Chain Transactions via Pre-Signing Adaptor Signatures

• URL: http://arxiv.org/abs/2503.12719v1
• Date: Mon, 17 Mar 2025 01:15:33 GMT
• Title: Enabling High-Frequency Trading with Near-Instant, Trustless Cross-Chain Transactions via Pre-Signing Adaptor Signatures
• Authors: Ethan Francolla, Arnav Shah,
• Abstract summary: This white paper will introduce a protocol for atomic swaps that eliminates the need for an intermediary currency or centralized trusted third party.<n>It will reduce transaction times between Bitcoin and swaps to approximately 15 seconds for a market maker.
• Score: 0.0
• License: http://creativecommons.org/licenses/by-sa/4.0/
• Abstract: Atomic swaps have been widely considered to be an ideal solution for cross-chain cryptocurrency transactions due to their trustless and decentralized nature. However, their adoption in practice has been strictly limited compared to centralized exchange order books because of long transaction times (anywhere from 20 to 60 minutes) prohibiting market makers from accurately pricing atomic swap spreads. For the decentralized finance ecosystem to expand and benefit all users, this would require accommodating market makers and high-frequency traders to reduce spreads and dramatically boost liquidity. This white paper will introduce a protocol for atomic swaps that eliminates the need for an intermediary currency or centralized trusted third party, reducing transaction times between Bitcoin and Ethereum swaps to approximately 15 seconds for a market maker, and could be reduced further with future Layer 2 solutions.

Related papers

• FairDAG: Consensus Fairness over Concurrent Causal Design [4.261985028097139]
  Research has shown that adversaries exploit transaction ordering to extract profits. This issue affects both permissionless and permissioned blockchains. We propose FairDAG-AB and FairDAG-RL, which leverage DAG-based consensus protocols.
  arXiv  Detail & Related papers  (2025-04-03T00:38:03Z)
• Efficient and Universally Accessible Cross-Chain Options without Upfront Holder Collateral [3.5562096606353215]
  Despite the growing interest in options for blockchain-resident assets, such as cryptocurrencies, current option mechanisms face significant challenges.<n>Our protocol is the first to eliminate the need for holders to post collateral when establishing options in trustless service environments.<n>Its universality allows for cross-chain options involving nearly textitany assets on textitany two different blockchains.<n>Our evaluation demonstrates that the proposed scheme reduces option transfer latency to less than half of that in existing methods.
  arXiv  Detail & Related papers  (2024-10-21T07:43:20Z)
• The Latency Price of Threshold Cryptosystem in Blockchains [52.359230560289745]
  We study the interplay between threshold cryptography and a class of blockchains that use Byzantine-fault tolerant (BFT) consensus protocols. Existing approaches for threshold cryptosystems introduce a latency overhead of at least one message delay for running the threshold cryptographic protocol. We propose a mechanism to eliminate this overhead for blockchain-native threshold cryptosystems with tight thresholds.
  arXiv  Detail & Related papers  (2024-07-16T20:53:04Z)
• A Multi-Party, Multi-Blockchain Atomic Swap Protocol with Universal Adaptor Secret [2.850220538113752]
  This paper presents a novel multi-party atomic swap protocol that operates almost entirely off-chain. By addressing key challenges such as collusion attacks and malicious dropouts, our protocol significantly enhances the security and efficiency of multi-party atomic swaps.
  arXiv  Detail & Related papers  (2024-06-24T17:33:03Z)
• IT Strategic alignment in the decentralized finance (DeFi): CBDC and digital currencies [49.1574468325115]
  Decentralized finance (DeFi) is a disruptive-based financial infrastructure. This paper seeks to answer two main questions 1) What are the common IT elements in the DeFi? And 2) How the elements to the IT strategic alignment in DeFi?
  arXiv  Detail & Related papers  (2024-05-17T10:19:20Z)
• VORTEX: Real-Time Off-Chain Payments and Cross-Chain Swaps for Cryptocurrencies [14.203351200435575]
  We present VERTEX, a TEE-based layer-2 solution that tackles two crucial challenges in the realm of cryptocurrencies. It allows a payer to make direct payments to anyone without requiring any on-chain relationship or intermediary channels. It is the first known solution that enables real-time cross-chain swaps without relying on a central server.
  arXiv  Detail & Related papers  (2024-03-22T13:21:09Z)
• Towards a Theory of Maximal Extractable Value II: Uncertainty [4.07926531936425]
  Maximal Extractable Value (MEV) is value extractable by temporary monopoly power commonly found in decentralized systems. This extraction stems from a lack of user privacy upon transaction submission and the ability of a monopolist validator to reorder, add, and/or censor transactions. We show that neither fair ordering techniques nor economic mechanisms can individually mitigate MEV for arbitrary payoff functions.
  arXiv  Detail & Related papers  (2023-09-25T15:01:11Z)
• Onchain Sports Betting using UBET Automated Market Maker [45.410818354926406]
  Decentralized sports betting requires automated market makers (AMMs) for efficient liquidity provision. Existing AMMs like Uniswap lack alignment with fair odds, creating risks for liquidity providers. The paper introduces UBET AMM (UAMM), utilizing smart contracts and algorithms to price sports odds fairly.
  arXiv  Detail & Related papers  (2023-08-18T02:19:30Z)
• Identifying key players in dark web marketplaces [58.720142291102135]
  This paper aims to identify the key players in Bitcoin transaction networks linked to dark markets. We show that a large fraction of the traded volume is concentrated in a small group of elite market participants. Our findings suggest that understanding the behavior of key players in dark web marketplaces is critical to effectively disrupting illegal activities.
  arXiv  Detail & Related papers  (2023-06-15T20:30:43Z)
• Uniswap Liquidity Provision: An Online Learning Approach [49.145538162253594]
  Decentralized Exchanges (DEXs) are new types of marketplaces leveraging technology. One such DEX, Uniswap v3, allows liquidity providers to allocate funds more efficiently by specifying an active price interval for their funds. This introduces the problem of finding an optimal strategy for choosing price intervals. We formalize this problem as an online learning problem with non-stochastic rewards.
  arXiv  Detail & Related papers  (2023-02-01T17:21:40Z)
• A Game of NFTs: Characterizing NFT Wash Trading in the Ethereum Blockchain [53.8917088220974]
  The Non-Fungible Token (NFT) market experienced explosive growth in 2021, with a monthly trade volume reaching $6 billion in January 2022. Concerns have emerged about possible wash trading, a form of market manipulation in which one party repeatedly trades an NFT to inflate its volume artificially. We find that wash trading affects 5.66% of all NFT collections, with a total artificial volume of $3,406,110,774.
  arXiv  Detail & Related papers  (2022-12-02T15:03:35Z)
• Regulation conform DLT-operable payment adapter based on trustless - justified trust combined generalized state channels [77.34726150561087]
  Economy of Things (EoT) will be based on software agents running on peer-to-peer trustless networks. We give an overview of current solutions that differ in their fundamental values and technological possibilities. We propose to combine the strengths of the crypto based, decentralized trustless elements with established and well regulated means of payment.
  arXiv  Detail & Related papers  (2020-07-03T10:45:55Z)
• A Deep Reinforcement Learning Framework for Continuous Intraday Market Bidding [69.37299910149981]
  A key component for the successful renewable energy sources integration is the usage of energy storage. We propose a novel modelling framework for the strategic participation of energy storage in the European continuous intraday market. An distributed version of the fitted Q algorithm is chosen for solving this problem due to its sample efficiency. Results indicate that the agent converges to a policy that achieves in average higher total revenues than the benchmark strategy.
  arXiv  Detail & Related papers  (2020-04-13T13:50:13Z)

This list is automatically generated from the titles and abstracts of the papers in this site.

This site does not guarantee the quality of this site (including all information) and is not responsible for any consequences.