Article open access publication

Automated Execution of Financial Contracts on Blockchains

Business & Information Systems Engineering, Springer Nature, ISSN 2363-7005

Volume 59, 6, 2017

DOI:10.1007/s12599-017-0507-z, Dimensions: pub.1093027557,

Authors

Ross, Omri * (1)

* Corresponding author

Affiliations

Organisations

  1. (1) University of Copenhagen, grid.5254.6, KU

Countries

Denmark

Continents

Europe

Description

The paper investigates financial contract management on distributed ledgers and provides a working solution implemented on the Ethereum blockchain. The system is based on a domain-specific language for financial contracts that is capable of expressing complex multi-party derivatives and is conducive to automated execution. The authors propose an architecture for separating contractual terms from contract execution: a contract evaluator encapsulates the syntax and semantics of financial contracts without actively performing contractual actions; such actions are handled by user-definable contract managers that administer strategies for the execution of contracts. Hosting contracts and contract managers on a distributed ledger, side-by-side with digital assets, facilitates automated settlement of commitments without the need for an intermediary. The paper discusses how the proposed technology may change the way financial institutions, regulators, and individuals interact in a financial system based on distributed ledgers.

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NORA University Profiles

University of Copenhagen

Danish Open Access Indicator

2017: Unused

Research area: Science & Technology

Dimensions Citation Indicators

Times Cited: 26

Field Citation Ratio (FCR): 23.1

Open Access Info

Green, Submitted