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What is the role of social interactions in the creation of price bubbles? Answering this question requires obtaining collective behavioural traces generated by the activity of a large number of actors. Digital currencies offer a unique…

Physics and Society · Physics 2014-08-11 David Garcia , Claudio Juan Tessone , Pavlin Mavrodiev , Nicolas Perony

The cryptocurrency is attracting more and more attention because of the blockchain technology. Ethereum is gaining a significant popularity in blockchain community, mainly due to the fact that it is designed in a way that enables developers…

Computation and Language · Computer Science 2018-11-28 TonTon Hsien-De Huang , Po-Wei Hong , Ying-Tse Lee , Yi-Lun Wang , Chi-Leong Lok , Hung-Yu Kao

Since the inception of Bitcoin in 2008, cryptocurrencies have played an increasing role in the world of e-commerce, but the recent turbulence in the cryptocurrency market in 2018 has raised some concerns about their stability and associated…

Methodology · Statistics 2021-04-14 Yan Gong , Raphaël Huser

Cryptocurrencies are a type of digital money meant to provide security and anonymity while using cryptography techniques. Although cryptocurrencies represent a breakthrough and provide some important benefits, their usage poses some risks…

General Finance · Quantitative Finance 2024-01-22 Ana Fernández Vilas , Rebeca P. Díaz Redondo , Daniel Couto Cancela , Alejandro Torrado Pazos

This paper develops a model to evaluate the viability of blockchain markets as the sole venue for price formation. Blockchains clear at discrete intervals called block time, and transactions are executed sequentially according to priority…

General Finance · Quantitative Finance 2026-05-19 Agostino Capponi , Álvaro Cartea , Fayçal Drissi

This paper demonstrates that Automated Market Maker (AMM) based markets, such as those using constant product formulas (e.g., Uniswap), are inherently path-dependent. We prove mathematically that the sequence of operations in AMMs…

Computational Engineering, Finance, and Science · Computer Science 2025-03-04 Keroshan Pillay

Automated Market Makers (AMMs), as a core infrastructure of decentralized finance (DeFi), uniquely drive on-chain asset pricing through a deterministic reserve ratio mechanism. Unlike traditional markets, AMM price dynamics is triggered…

Machine Learning · Computer Science 2026-04-23 Huaiyu Jia , Jiehshun You , Yizhi Luo , Jingyu Liu , Shuo Sun

Decentralized prediction markets (DePMs) allow open participation in event-based wagering without fully relying on centralized intermediaries. We review the history of DePMs which date back to 2011 and includes hundreds of proposals.…

Computational Engineering, Finance, and Science · Computer Science 2026-03-16 Nahid Rahman , Joseph Al-Chami , Jeremy Clark

Supply chains lend themselves to blockchain technology, but certain challenges remain, especially around invoice financing. For example, the further a supplier is removed from the final consumer product, the more difficult it is to get…

General Finance · Quantitative Finance 2019-06-11 Sandra Johnson , Peter Robinson , Kishore Atreya , Claudio Lisco

Blockchain stores information into a chain of "blocks", whose integrity is usually guaranteed by Proof of Work (PoW). In many blockchain applications (including cryptocurrencies), users compete with each other to win the ownership of the…

Cryptography and Security · Computer Science 2018-10-09 Wei Li

Privacy-preserving price e-negotiation (3PEN) is an important topic of secure multi-party computation (SMC) in the electronic commerce field, and the key point of its security is to guarantee the privacy of seller's and buyer's prices. In…

Quantum Physics · Physics 2024-05-14 Wen-Jie Liu , Chun-Tang Li , Yu Zheng , Yong Xu , Yin-Song Xu

Obfuscation raises the interpretation cost of smart-contract auditing, yet its signals are hard to transfer across chains. We present HOBFNET, a fast surrogate of OBFPROBE, enabling million-scale cross-chain scoring. The model aligns with…

Cryptography and Security · Computer Science 2026-02-02 Yao Zhao , Zhang Sheng , Shengchen Duan , Shen Wang , Daoyuan Wu , Zhiyuan Wan

In the rapidly evolving landscape of eCommerce, Artificial Intelligence (AI) based pricing algorithms, particularly those utilizing Reinforcement Learning (RL), are becoming increasingly prevalent. This rise has led to an inextricable…

Machine Learning · Computer Science 2024-06-06 Michael Schlechtinger , Damaris Kosack , Franz Krause , Heiko Paulheim

Bitcoin is firmly becoming a mainstream asset in our global society. Its highly volatile nature has traders and speculators flooding into the market to take advantage of its significant price swings in the hope of making money. This work…

Machine Learning · Computer Science 2021-10-29 Nathan Crone , Eoin Brophy , Tomas Ward

Cryptocurrencies aim to replicate physical cash in the digital realm while removing centralized and trusted intermediaries. Decentralization is achieved by the blockchain, a permanent public ledger that contains a record of every…

Cryptography and Security · Computer Science 2024-06-04 Domokos Miklós Kelen , István András Seres

Pricing advanced data products - particularly in complex fields such as semiconductor manufacturing - is a fundamentally challenging task due to the sparsity of publicly available transaction data, and its frequent heterogeneity and…

Computational Finance · Quantitative Finance 2026-02-03 Adam L. Siemiatkowski , Victor Zhirnov , Kashyap Yellai , Gabriella Bein , Terresa Zimmerman

Counterparty risk denotes the risk that a party defaults in a bilateral contract. This risk not only depends on the two parties involved, but also on the risk from various other contracts each of these parties holds. In rather informal…

Risk Management · Quantitative Finance 2015-09-16 Vahan Nanumyan , Antonios Garas , Frank Schweitzer

The objective of this paper is to introduce the theory of option pricing for markets with informed traders within the framework of dynamic asset pricing theory. We introduce new models for option pricing for informed traders in complete…

Mathematical Finance · Quantitative Finance 2020-08-13 Yuan Hu , Abootaleb Shirvani , Stoyan Stoyanov , Young Shin Kim , Frank J. Fabozzi , Svetlozar T. Rachev

The availability of data on digital traces is growing to unprecedented sizes, but inferring actionable knowledge from large-scale data is far from being trivial. This is especially important for computational finance, where digital traces…

Social and Information Networks · Computer Science 2016-05-13 David Garcia , Frank Schweitzer

Data Mining deals extracting hidden knowledge, unexpected pattern and new rules from large database. Various customized data mining tools have been developed for domain specific applications such as Biomedicine, DNA analysis and…

Databases · Computer Science 2010-03-11 Sabyasachi Pattanaik , Partha Pratim Ghosh