Practical Applications of Footprints on a Blockchain: Trading and Information Leakage in Distributed Ledgers

Practical Applications Summary In Footprints on a Blockchain: Trading and Information Leakage in Distributed Ledgers , from the Summer 2017 issue of The Journal of Trading , authors Rune Tevasvold Aune , Adam Krellenstein (both of Symbiont ) Maureen O’Hara ( Cornell University School of Management ) and Ouziel Slama (formerly of Symbiont and now with Legolas ), describe a creative solution to a potential limitation to the use of distributed ledger technology in financial market contexts. This complication relates to the disclosure of proprietary trading information that could be used to “front-run” certain investors. The authors outline a solution to this problem, which involves the use of a cryptographic hash to indicate prioritization of transactions. This solution could facilitate widespread usage of blockchain technology in a variety of financial contexts.