Matching in decentralized two-sided markets via Blockchain-based deferred acceptance
Felix Funk, Jörg E. Franke · 2021
Ever since the technology was first introduced, Blockchains have been considered as a potential enabler for decentralized markets. Starting with the initial usage of cryptocurrencies on conventional platforms, to the development of fully decentralized, smart-contract-based platforms and highly specific applications running on consortium chains, this potential has already been realized. However, competitive, two-sided peer-to-peer matching markets in which financial aspects play a secondary role have been researched less. In this paper, we propose the integration of the classic deferred acceptance algorithm with Blockchain technology in order to leverage the benefits of its clearinghouse architecture for sets of peers without requiring an intermediary. We furthermore present a prototypical implementation including a sealing mechanism and discuss its functionality and scalability.