Blockchain-Based Fair and Secure Electronic Double Auction Protocol

Abstract

Double auction is an auction in which multiple buyers and sellers looking for a price where supply and demand balance. Since the electronic double auction based on secure multiparty computation (DABSMPC) cannot guarantee its fairness, we propose a blockchain-based fair and secure electronic double auction protocol (BFSDA). BFSDA modifies the data input and distribution mechanism of participants in DABSMPC, which improves the security of the protocol. Then, the BFSDA introduces and improves the blockchain-based fair and secure multiparty computation protocol (BFSMPC) to ensure fairness while increasing the success rate of secret recovery. In addition, BFSDA uses a fairer and more efficient protocol for secure two-party comparing to obtain the final marketing clearing price. The schema analysis result of BFSDA shows that: first, the private input data will not be revealed as long as data owner is not compromised, second, honest participants can get the result or economic compensation, and third, participants only need to pay the deposit once and a large amount of complicated verification operations are carried out off the chain, which ensures the efficiency of the protocol.