Innovations in Blockchain for Crypto Assets and Exchanges

Abstract

This special issue contains extended versions of the best papers from the IEEE CryptoEx 2023 workshop (https://icbc2023.ieee-icbc.org/workshop/cryptoex-2023), which was held as a co-located workshop with 2023 IEEE International Conference on Blockchain and Cryptocurrency. The workshop was held on Friday, May 5, 2023, in Dubai, UAE. The papers in this special issue explore crucial advancements in fractional NFTs, stablecoins, and cryptocurrency exchanges, reflecting the diverse and innovative applications of blockchain technology. The first paper, titled “Fractional Non-Fungible Tokens (NFTs): Overview, Evaluation, Marketplaces, and Challenges,” authored by Wonseok Choi, Jongsoo Woo, and James Won-Ki Hong, explores the innovative concept of fractional NFTs. By democratizing access to high-value digital assets, fractional NFTs merge tokenization, smart contracts, and ownership models to revolutionize the digital economy. The paper evaluates gas consumption and examines regulatory and security challenges, underscoring the importance of transparency and robust security measures in fostering trust within fractional NFT ecosystems. The second paper, titled “Leveraging Ponzi-like Designs in Stablecoins,” by Shange Fu, Qin Wang, Jiangshan Yu, and Shiping Chen, provides a novel perspective on algorithmic stablecoins, which are often dismissed as Ponzi schemes. This study clarifies the fundamental nature of Ponzi schemes and introduces a rational model for evaluating the sustainability of algorithmic stablecoins. By applying historical data, the paper identifies conditions under which these stablecoins can function effectively as rational Ponzi games, offering a new understanding of their stability mechanisms. The third paper, titled “Athena: Smart Order Routing on Centralized Crypto Exchanges using a Unified Order Book,” authored by Robert Henker, Daniel Atzberger, Jan Ole Vollmer, Willy Scheibel, Jürgen Döllner, and Markus Bick, describes the development and implementation of Athena. This system optimizes trading strategies by integrating order books from multiple centralized crypto exchanges into a unified order book. Athena's smart order routing algorithm significantly reduces implicit trading costs, making it particularly beneficial for institutional investors in illiquid crypto markets. The fourth paper, titled “Deeper: A Shared Liquidity DEX Design for Low Trading Volume Tokens to Enhance Average Liquidity,” by Srisht Fateh Singh, Panagiotis Michalopoulos, and Andreas Veneris, introduces Deeper, a decentralized exchange design aimed at improving liquidity for low trading volume tokens. By enabling liquidity providers to share reserves of a common token, Deeper addresses issues like high slippage and sandwich attacks. The paper demonstrates the enhanced liquidity achieved through historical price experiments and highlights potential risks for liquidity providers. We believe that these four papers make significant contributions to the field of blockchain for crypto assets and exchanges. They offer valuable insights into the current challenges and future opportunities, paving the way for more efficient, secure, and inclusive digital ecosystems. We extend our heartfelt gratitude to the authors for their exceptional contributions, the reviewers for their insightful feedback, and the editorial team for their diligent efforts in curating this special issue.