  Although the iterative double auction has been widely used in many different
applications, one of the major problems in its current implementations is that
they rely on a trusted third party to handle the auction process. This imposes
the risk of single point of failures, monopoly, and bribery. In this paper, we
aim to tackle this problem by proposing a novel decentralized and trustless
framework for iterative double auction based on blockchain. Our design adopts
the smart contract and state channel technologies to enable a double auction
process among parties that do not need to trust each other, while minimizing
the blockchain transactions. In specific, we propose an extension to the
original concept of state channels that can support multiparty computation.
Then we provide a formal development of the proposed framework and prove the
security of our design against adversaries. Finally, we develop a
proof-of-concept implementation of our framework using Elixir and Solidity, on
which we conduct various experiments to demonstrate its feasibility and
practicality.

Cryptography and Security