Decentralized Stock Exchange using Blockchain Network

This research intends to contribute to the ongoing evolution of decentralized financial systems by proposing a novel architecture for a decentralized stock exchange. By analyzing the successes and challenges of existing decentralized exchanges in the cryptocurrency space, this study leverages blockchain technology to address the emerging challenges. The proposed architecture aims to provide a decentralized solution to ensure asset ownership replication, transparent market order execution, and accurate settlement verification across all network nodes. By eliminating the need for a central authority or intermediary in order placement and execution, the proposed system seeks to enhance security, transparency, and operational resilience. The study also involves the practical implementation of a prototype on an Ethereum-based platform, with a focus on a subset of rules derived from established decentralized exchanges. Through comparative analysis, particularly in terms of transaction fees, with reference to existing decentralized exchange models, this study showcases the potential benefits and advancements that can be achieved in the field of decentralized stock trading. By building on the foundations laid by existing decentralized exchanges and addressing their limitations, this research seeks to contribute valuable insights and innovations to the development of a decentralized stock exchange, paving way for a more secure, transparent, and inclusive financial ecosystem.