A Case Study for Blockchain in OTC: “BATN”: A Prototype for Bid and Ask Trading Network

With product iteration and emerging market demand, traditional organizations have to look for ways to exchange information and trade options/swaps under trust-less network. In this paper, we propose – “BATN”: a prototype for bid and ask trading network based on Blockchain. We propose a system in which a decentralized network of trading agencies, supervisor institutions and witness nodes can enable public bid/ask, automated risk evaluation, and transparent supervision through a trail of historic trading behavior and smart contracts. Our system decentralizes critical information about alliance governance, authentication and credit evaluation through a verifiable audit trail. We present BATN using Hyperchain through which a consortium of geographically dispersed organizations can operate business, sign e-contracts and report transactions anywhere and anytime. Our prototype makes sure the transaction per second on a decentralized network can meet trading volume in reality. This paper intends to improve business effectiveness for much larger fields through the working prototype and discusses the potential of blockchain for finance IT.