Wei-Tek Tsai, Yong Luo, Enyan Deng, Jing Zhao, Xiaoqiang Ding, Jie Li and Bo Yuan
This paper aims to apply blockchains (BCs) for trade clearing and settlement in a realistic clearinghouse. The purpose is to demonstrate the feasibility and scalability of this…
Abstract
Purpose
This paper aims to apply blockchains (BCs) for trade clearing and settlement in a realistic clearinghouse. The purpose is to demonstrate the feasibility and scalability of this approach.
Design/methodology/approach
The study uses account BCs and trading BCs as building blocks for trade clearing and settlement. Careful design is made to ensure that this approach is feasible and scalable.
Findings
A design has been proposed that can process hundreds of thousands of trades for a clearinghouse and it addresses performance, privacy and scalability of realistic trade clearing and settlement. The design has been implemented and experimented in a clearinghouse for over two months and processes over 3B real transactions from an exchange. The first month was to experiment with the system with historical data, the second month was to experiment with real-time data during market trading hours. The system performed as designed and intended.
Research limitations/implications
This is the first large research paper that applied BCs for clearing in the world. The authors applied the system to a clearinghouse and processed over 3 billion transactions, equivalent to 13 years of London Stock Exchange transaction volume, demonstrating that BCs can handle a large number of transactions.
Practical implications
The design can be duplicated to many clearinghouses in the world, and this also paves the way BCs can be used in large financial institutions.
Social implications
An implication is that other trading firms, clearinghouses and banks can apply the same technology for trade clearing, ushering the way BCs can be used in institutions. As clearing is a core function in business transactions, this has significant implications. The design can be discussed and improved in various communities.
Originality/value
As this is the first application of BCs to large clearinghouses that uses unique BC designs. This has significant value. Many studies have been performed but few have been reported in the scientific community. The system has been implemented, experimented and demonstrated in public for months.
Details
Keywords
Jun Lin, Wen Long, Anting Zhang and Yueting Chai
The blockchain technology provides a way to record transactions that is designed to be highly secure, transparent, trustable, traceable, auditable and tamper-proof. And, the…
Abstract
Purpose
The blockchain technology provides a way to record transactions that is designed to be highly secure, transparent, trustable, traceable, auditable and tamper-proof. And, the internet of things (IoT) technology provides the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction, which is able to link computing devices and digitized machines, things, objects, animals and people that are provided with digital unique identifiers (UIDs). This paper aims to explore the combined application of blockchain and IoT-based technologies, especially on the intellectual property protection area.
Design/methodology/approach
In this paper, the authors propose a high-level architecture design of blockchain and IoT-based intellectual property protection system, which can help to process three types of intellectual property: (1) patents, copyrights, trademarks etc.; (2) industrial design, trade dress, craft works, trade secrets etc.; and (3) plant variety rights, geographical indications, etc.
Findings
Using blockchain peer-to-peer network and IoT devices, the proposed method can help people to establish a trusted, self-organized, open and ecological intellectual property protection system.
Originality/value
To the best of the authors’ knowledge, this is the first work that applied blockchain and IoT technologies on traditional intellectual property protection and trade ecosystem.