RT Journal Article SR Electronic T1 Footprints on a Blockchain: Trading and Information Leakage in Distributed Ledgers JF The Journal of Trading FD Institutional Investor Journals SP 5 OP 13 DO 10.3905/jot.2017.12.3.005 VO 12 IS 3 A1 Aune, Rune Tevasvold A1 Krellenstein, Adam A1 O’Hara, Maureen A1 Slama, Ouziel YR 2017 UL http://jot.pm-research.com/content/12/3/5.abstract AB This article examines information leakage when trading in distributed ledgers. We show how the lack of time priority in the period between the publication of a transaction and its validation by miners or designated participants can expose a transaction’s footprint to the market, resulting in potential front-running and manipulation. We propose a cryptographic approach for solving information leakage problems in distributed ledgers that relies on using a hash (or fingerprint) to secure time priority, followed by a second communication that reveals more features of the underlying market transaction—in effect using a transaction’s fingerprint to hide its footprint. Solving the information leakage problem greatly expands the potential applications of private distributed ledger technology to include trading.