Satori® – Towards a P2P (“Post-Walrasian”) Crypto-Economic Platform

CEO Gabe Laydon leaves MZ to focus on crypto — Venturebeat June 1, 2018

Gabe Leydon YouTube video at LA Crypto Investment Summit – May 14, 2018

Gabe Leydon video at Hedera Hashgraph NY announcement April 18, 2018

 

 

 

 

 

Current Crypto exchanges — 2 sided auctions — order book — bid ask

“In a crypto-economy, the network becomes the exchange”

Traders would move to this platform as intermediary rents would dissipate into better pricing. This is an example of the services offered today to rent-seeking HFTs by Instinet – A Nomura company

Register with the SEC as an ATS or ECN not an exchange.

MZ’s Satori pub-sub serverless architecture is missing a Post-Walrasian market design

Value Proposition:

  • simple FFS business model
  • eliminate all rents captured by intermediary and their favored trader via a completely simple, transparent, stateless market design.

Traders would move to this platform as intermediary rents would disspate into better pricing.

Register with the SEC as an ATS or ECN not an exchange.

Satori pub-sub serverless architecture is missing a Post-Walrasian market design

Specification suggestions:

  • high frequency, many-to-many Myerson “take it or leave it” (TIOLI) pub-sub
  • stateless bid-ask protocol with data log of past events (bid-ask, matches)
  • algorithmic shredding of order size
  • discrete time, batch process (i.e. events) following  Eric Budish’s work on continuous time design flaw in  HFT platforms 
  • third party AI bid bots
  • third party custodial and clearing functions 
  • settlement a function of DTL layer

Companies with pub-sub platforms

  • Satori (formerly MZ)
  • Facebook (WhatsApp)
  • TenCent (WeChat)
  • Google (Cloud Pub/Sub)

Some relevant URLs

Gabe Leydon, CEO Satori (MZ) Fireside Chat Crypto Invest Summit, May 2018 https://www.youtube.com/watch?v=kF7vw05AlsU

Satori’s “AI Mesh network” transaction layer  stats — 500 Million “messages” per second or 1 million subscribers sending 100 bytes a second 

Hadera Hashgraph’s DLT stats — 500,000 transactions per second with less than a second to 100% consensus based on a “gossip of gossip protocol”

Eric Budish, The Design of Financial Exchange, Some Open Questions at the Intersection of Econ and CS.  Simons Institute of Computing UCB, November 2015 https://www.youtube.com/watch?v=Rilv2AJ1TWM

Eric Budish, “Will the Market Fix the Market?”, AEA/AFA Joint Luncheon Talk, January 2017 https://www.aeaweb.org/webcasts/2017/luncheon

Albert “Pete” Kyle, “The Changing Nature of Trading Markets, U of Maryland Conference,  May 2017 https://www.rhsmith.umd.edu/files/Documents/Centers/CFP/2017/kyle.pdf

Fisher Black, Toward A Fully Automatic Stock Exchange, 1971  http://17mj9yvb9fl2p5m872gtgax5.wpengine.netdna-cdn.com/wp-content/uploads/2017/07/Towards-a-fully-automated-stock-exhchange-part-1.pdf

 

 

Abrams tweets on the need for decentralized market design as part of a true decentralized crypto-economics transaction layer