Markets

Decentralized Derivatives Trading Through Blockchain

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Kleros, a decentralized dispute resolution ‘layer’ for virtually any transaction, has partnered with MARKET Protocol, a company building an open source foundation for decentralized derivatives markets – an industry worth over 500 trillion. Together, the two companies will provide a decentralized trading and dispute resolution technology platform for secure and trustless transactions.

Federico Ast, CEO of Kleros, said: “The decentralized nature of MARKET Protocol is another great application for our trustless arbitration services. As in other critical use cases such as e-commerce and payments, this is another step for our protocol to build the dispute resolution infrastructure for the global decentralized economy to operate smoothly and securely”.

Kleros, taking its name from the Greek word for Kleroterion – a stone used in voting in ancient Greece, provides completely decentralized arbitration services for virtually anything. The company proposes doing this using Ethereum smart contracts. Its dispute resolution technology can be used to arbitrate all kinds of disputes in industries such as e-commerce, finance and insurance.

MARKET Protocol is powering safe, solvent & trustless derivative trading of any asset. This creates a decentralized framework allowing traders to establish long or short positions without lending or borrowing. Contracts are guaranteed solvent with no counterparty risk. Users can trade cross-chain, off-chain or on-chain relationships, such as Monero/ETH or APPL/stablecoin using ERC20 assets as collateral while remaining on the Ethereum blockchain. The protocol provides the pieces necessary for others to create decentralized exchanges and applications. MARKET Protocol’s first beta dApp was released on Rinkeby test network.

CEO and co-founder of MARKET Protocol, Seth Rubin noted: “With trustless settlement, we are guaranteed to have issues from time to time. This can be as simple as bad data or worse, malicious data. We are excited to work with Kleros to provide creators of MARKET Protocol contract relationships a robust dispute resolution mechanism. We look forward to working with Federico and the rest of the Kleros team!”

Combined with Kleros, the two applications will provide the infrastructure for secure and fair decentralized trading for the next generation of derivatives traders.

 

 

Matthew Warner
Based near Windsor, England, Matthew Warner is an enthusiast for innovative, cutting edge technologies. He is a B.Eng. graduate in engineering with honors from the University of Warwick and also holds an PGCE in education degree. Matthew is a member of Mensa.