A privacy preserving and auditable blockchain framework for seccure securites trading.

Area of Science:

• Financial Technology
• Computer Science
• Blockchain Technology

Background:

• Current securities trading systems face challenges with settlement efficiency, audit transparency, and fraud prevention due to centralized intermediaries and outdated infrastructure.
• Existing research models often overlook risks associated with delayed settlements, opaque record-keeping, and manual compliance checks.

Purpose of the Study:

• To design and evaluate a novel blockchain-based equities trading platform.
• To enhance transaction security and traceability within regulated financial institutions' trading environments.

Main Methods:

• Development of Provable Atomic Consensus for Trading (PACT), a hybrid consensus blockchain architecture.
• Integration of zero-knowledge proofs for privacy-preserving atomic settlements (instant delivery versus payment).
• Implementation of regulator-accessible smart contracts for real-time compliance monitoring.

Main Results:

• PACT demonstrated a 20% reduction in consensus finality time and a 53% reduction in proof verification time.
• Significant improvements observed in smart contract vulnerability (56%) and auditability index (42%).
• While throughput and transaction volume were lower with 10 validators, latency was reduced by 24% compared to existing models.

Conclusions:

• Blockchain technology, as exemplified by PACT, can enhance the speed, reliability, and transparency of securities trading infrastructure.
• The PACT platform effectively addresses security and traceability concerns without compromising regulatory compliance.