Abstract

 A pure peer to peer version of the exchange system would allow all parties access to the market without relying on any central organization for market access. Paper proposes a solution for the problem of maintain an order book and determine the execution rate in the peer to peer network. Like crypto-currencies the network relies on blockchain of transaction. Digital signature system would be the core of the decentralized market place (Mandi). The paper defines basic ground rules for the working of decentralized exchange. The major components of the decentralized exchange are issuing process, co-existence of blockchain and order books and functions of the miner. Unlike other crypto currencies de-centralized exchange would have a trust based issuing process which in long run would be a sum zero game. The decentralized 
Exchange would have 3 types of entities namely – Issuer, Trader and Miner.