Fair and Decentralized Exchange of Digital Goods
This addresses the challenge of trustless and private transactions in decentralized marketplaces, offering a novel solution for data exchange.
The paper tackles the problem of enabling secure and fair exchanges of digital goods for tokens without requiring ongoing third-party involvement, achieving a protocol where both parties either complete the exchange or neither does, with no dispute resolution needed.
We construct a privacy-preserving, distributed and decentralized marketplace where parties can exchange data for tokens. In this market, buyers and sellers make transactions in a blockchain and interact with a third party, called notary, who has the ability to vouch for the authenticity and integrity of the data. We introduce a protocol for the data-token exchange where neither party gains more information than what it is paying for, and the exchange is fair: either both parties gets the other's item or neither does. No third party involvement is required after setup, and no dispute resolution is needed.