SmartExchange: Decentralised Trustless Cryptocurrency Exchange

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

Abstract

Trading cryptocurrency on current digital exchange platforms is a trust-based process, where the parties involved in the exchange have to fully trust the service provider. As it has been proven several times, this could lead to funds being stolen, either due to malicious service providers that simply disappear or due to hacks that these platforms might suffer. In this work, we propose and develop a decentralised exchange solution based on smart contracts running on the Ethereum network that is open, verifiable, and does not require trust. The platform enables two parties to trade different currencies, limited to Ethereum and Bitcoin in the current status of the system. A smart contract, deployed on the Ethereum blockchain, functions as an escrow, which holds a user’s funds until a verified transaction has been made by the other party. To make the smart contract able to detect a Bitcoin transfer, we implement our solution by utilising an oracle. We define the system architecture and implement a working platform, which we test in a model scenario, successfully exchanging Bitcoin and Ether on the blockchain test networks. We conclude the paper identifying possible challenges and threats to such a system.
Original languageEnglish
Title of host publicationBusiness Information Systems Workshops : BIS 2018 International Workshops, Berlin, Germany, July 18–20, 2018, Revised Papers
EditorsWitold Abramowicz, Adrian Paschke
Number of pages12
Place of PublicationCham
PublisherSpringer
Publication date2019
Pages356-367
ISBN (Print)978-3-030-04848-8
ISBN (Electronic)978-3-030-04849-5
DOIs
Publication statusPublished - 2019
Event21st International Conference on Business Information Systems, BIS 2018 - Berlin, Germany
Duration: 18 Jul 201820 Jul 2018

Conference

Conference21st International Conference on Business Information Systems, BIS 2018
CountryGermany
CityBerlin
Period18/07/201820/07/2018
SeriesLecture Notes in Business Information Processing
Volume339
ISSN1865-1348

Fingerprint

Ethers
Ion exchange
Electronic money

Keywords

  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Distributed
  • Ethereum
  • Exchange
  • Oracle
  • Smart contract

Cite this

Adamik, F., & Kosta, S. (2019). SmartExchange: Decentralised Trustless Cryptocurrency Exchange. In W. Abramowicz, & A. Paschke (Eds.), Business Information Systems Workshops: BIS 2018 International Workshops, Berlin, Germany, July 18–20, 2018, Revised Papers (pp. 356-367). Cham: Springer. Lecture Notes in Business Information Processing, Vol.. 339 https://doi.org/10.1007/978-3-030-04849-5_32
Adamik, Filip ; Kosta, Sokol. / SmartExchange : Decentralised Trustless Cryptocurrency Exchange. Business Information Systems Workshops: BIS 2018 International Workshops, Berlin, Germany, July 18–20, 2018, Revised Papers. editor / Witold Abramowicz ; Adrian Paschke. Cham : Springer, 2019. pp. 356-367 (Lecture Notes in Business Information Processing, Vol. 339).
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Adamik, F & Kosta, S 2019, SmartExchange: Decentralised Trustless Cryptocurrency Exchange. in W Abramowicz & A Paschke (eds), Business Information Systems Workshops: BIS 2018 International Workshops, Berlin, Germany, July 18–20, 2018, Revised Papers. Springer, Cham, Lecture Notes in Business Information Processing, vol. 339, pp. 356-367, 21st International Conference on Business Information Systems, BIS 2018, Berlin, Germany, 18/07/2018. https://doi.org/10.1007/978-3-030-04849-5_32

SmartExchange : Decentralised Trustless Cryptocurrency Exchange. / Adamik, Filip; Kosta, Sokol.

Business Information Systems Workshops: BIS 2018 International Workshops, Berlin, Germany, July 18–20, 2018, Revised Papers. ed. / Witold Abramowicz; Adrian Paschke. Cham : Springer, 2019. p. 356-367 (Lecture Notes in Business Information Processing, Vol. 339).

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

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Adamik F, Kosta S. SmartExchange: Decentralised Trustless Cryptocurrency Exchange. In Abramowicz W, Paschke A, editors, Business Information Systems Workshops: BIS 2018 International Workshops, Berlin, Germany, July 18–20, 2018, Revised Papers. Cham: Springer. 2019. p. 356-367. (Lecture Notes in Business Information Processing, Vol. 339). https://doi.org/10.1007/978-3-030-04849-5_32