Trust Mechanism Design: Blockchain for Good

Mechanism design theory, introduced by 2007 Nobel laureates Hurwicz, Maskin, and Myerson, has guided economic institutions worldwide to achieve desirable goals in allocating scarce resources. However, literature on mechanism design that guides its application requests a trustworthy third party. In reality, we regret to see that mutually beneficial transactions fail to happen due to trust issues, and social welfare cannot achieve its full potential. Blockchain technology is claimed to be the trust machine in cyberspace that could replace trustworthy third parties with tamper-proof algorithms. However, literature on blockchain as trust mechanism design is still absent. This project explores how blockchain advances mechanism design through interdisciplinary methods, including theoretical modeling, algorithmic computing, and data analysis. Our application scenario covers automated mechanisms in general, with voting and auction mechanism in particular.

Acknowledgments

The undergraduate scholars involved are supported by the pioneering Summer Research Scholar Program at Duke Kunshan University.

Scholars

Yutong Sun, Haoyang Yu, and Tianyu Wu major in Applied Mathematics & Computational Sciences, Josh Manto, Yifu Hang, Xinyu Tian, Zesen Zhuang, Yufan Zhang major in Data Science, Zhitong Chen majors in Political Economics.

• Yutong Sun, Master student in Financial Technology, Duke University

• Xinyu Tian, Master student in Computer Science, Duke University

• Zesen Zhuang, Master student in Electrical engineers and computer engineers, Duke University

• Yufan Zhang, Master student in Information Systems, Cornel Tech University

• Zhichao Chen, Master student in Financial Technology, Duke University

Publication, Presentation, and Working Paper

Fu, Yihang#, Zhuang, Zesen#, Zhang, Luyao*. (2023). AI Ethics on Blockchain: Topic Analysis on Twitter Data for Blockchain Security. In: Arai, K. (eds) Intelligent Computing. SAI 2023. Lecture Notes in Networks and Systems, vol 739. Springer, Cham. https://doi.org/10.1007/978-3-031-37963-5_7.

Supplementary Materials:

·    arXiv: https://arxiv.org/abs/2212.06951

·    GitHub: https://github.com/sciecon/blockchain-ethics

✔     Presented by Yihang Fu at Computing Conference, London, United Kingdom, June 22 – 23, 2023

Zhang, Yufan#, Chen, Zichao#, Sun, Yutong#, Liu, Yulin*, Zhang, Luyao* (2023). Blockchain Network Analysis: A Comparative Study of Decentralized Banks. In: Arai, K. (eds) Intelligent Computing. SAI 2023. Lecture Notes in Networks and Systems, vol 711. Springer, Cham. https://doi.org/10.1007/978-3-031-37717-4_67.

Supplementary Materials:

·    arXiv: https://arxiv.org/abs/2212.05632

·    GitHub: https://github.com/SciEcon/Blockchain-Network-Analysis

✔     Presented by Yutong Sun and accepted for publication in the conference proceeding at Computing Conference, London, United Kingdom, June 22 – 23, 2023

Yulin Liu, Haoyang Yu#, Yutong Sun#, Luyao Zhang*. 2022. “A Verification of Metaphor: Bitcoin Gold, Litecoin Silver?”

· arXiv: https://arxiv.org/abs/2308.00013

· GitHub: https://github.com/SciEcon/bitcoin_golden_litecoin_silver

✔     Accepted for publication in the conference proceeding at Future of Information and Communication Conference (FICC) Berlin, Germany, April. 4– 5, 2024

Datasets on Harvard Dataverse

Yufan Zhang; Zichao Chen; Yutong Sun; Yulin Liu; Luyao Zhang, 2023, "Replication Data for: Blockchain Network Analysis: A Comparative Study of Decentralized Banks", https://doi.org/10.7910/DVN/CZSB6C, Harvard Dataverse, V2, UNF:6:0afchMq55rHG86p/ikY02g== [fileUNF]

Yihang Fu; Zesen Zhuang; Luyao Zhang, 2023, "Replication Data for: AI Ethics on Blockchain: Topic Analysis on Twitter Data for Blockchain Security", https://doi.org/10.7910/DVN/CTBEF7, Harvard Dataverse, V2, UNF:6:JV12jMWLzoNbU5bbBQiobg== [fileUNF]

Yu, Haoyang; Yutong Sun; Yulin Liu; Luyao Zhang, 2023, "Replication Data for: Bitcoin Gold, Litecoin Silver: An Introduction to Cryptocurrency’s Valuation and Trading Strategy", https://doi.org/10.7910/DVN/AFIM6U, Harvard Dataverse, V1, UNF:6:0xBxaVg2w8KFLw6GsvtpZg== [fileUNF]

Poster

Exploratory Research Articles on Medium

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• [Blockchain, Law, and Economics: the AMA Interview for Mr. Lee Reiners]