JaxNet: Scalable Blockchain Network

Today's world is organized based on merit and value. A single global currency that's decentralized is needed for a global economy. Bitcoin is a partial solution to this need, however it suffers from scalability problems which prevent it from being mass-adopted. Also, the deflationary nature of bitcoin motivates people to hoard and speculate on them instead of using them for day to day transactions. We propose a scalable, decentralized cryptocurrency that is based on Proof of Work.The solution involves having parallel chains in a closed network using a mechanism which rewards miners proportional to their effort in maintaining the network.The proposed design introduces a novel approach for solving scalability problem in blockchain network based on merged mining.Comment: 55 pages. 10 figure

A Quantitative Analysis on BitMEX Perpetual Inverse Futures XBTUSD Contract

The perpetual inverse futures contract is a recent and most popularly traded cryptocurrency derivative over crypto derivatives exchanges. Exchanges implement a liquidation mechanism that terminates positions which no longer satisfy maintenance requirements. In this study, we use regression, stochastic calculus, and simulation methods to provide a quantitative description of the wealth/return process for holding an XBTUSD contract on BitMEX, examine the funding rate and index price properties, and relate liquidation to leverage as a stopping time problem. The results will help investors understand liquidation to optimize their trading strategy and researchers in studying the design of crypto derivatives

TimeFabric: Trusted Time for Permissioned Blockchains

As the popularity of blockchains continues to rise, blockchain platforms must be enhanced to support new application needs. In this paper, we propose one such enhancement that is essential for financial applications and online marketplaces - support for time-based logic such as verifying deadlines or expiry dates and examining a time window of recent account activity. We present a lightweight solution to reach consensus on the current time without relying on external time oracles. Our solution assigns timestamps to blocks at transaction validation time and maintains a cache reflecting the effects of recent transactions. We implement a proof-of-concept prototype, called TimeFabric, in Hyperledger Fabric, a popular permissioned blockchain platform, and experimentally demonstrate high throughput and minimal overhead (approximately 3%) of maintaining trusted time. We also demonstrate a 2x performance improvement due to the cache, compared to reconstructing account histories from the ledger