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Financial Domain-Specific Languages
Sergei Tikhomirov, University of Luxembourg, 30 March 2017
You Signed a Banking Contract
Did You Read It?
Why You Didn’t Read It
● Long
● Way, way too long
● Specialized vocabulary
● Complex sentences
● Written for lawyers, not for mere mortals
Can Computers Help?
● Can computers help us understand contracts?
● Only if they understand the language!
Computer Languages
● Precise
● Well-structured
● Machine-readable
Types of Computer Languages
● Markup langs: text structure (HTML)
● Modeling langs: objects & relationships (UML)
● Programming langs: computation (Java)
Objects of Financial Domain
Accounts, transactions, contracts
Who Gets What and When
Contract defines a set of transactions.
● Who pays whom?
● When?
● Under what conditions?
Naive Approach (Imperative)
● Describe how a computer should proceed
● What if we forget a corner case?
● Hard to automatically reason about
“If today is 2018-01-01, send $100 from X to Y”
A Better Approach (Declarative)
● Describe what we want to achieve
● Define small set of primitives
● Combine them to define new contracts
Declarative Contract Examples
● One($)
● Give(One($))
● Scale(100,One($))
● C := When(2018,Scale(100,One($)))
● And(Give(C),Scale(90,One(£)))
Our Contribution
● In our recent paper, we combine:
● Precise declarative financial language
● Trustless execution via blockchain
Conclusion
● Declarative language for finance is a good idea
● Combined with blockchain – even better!
Questions?
● S. L. Peyton Jones, J-M. Eber
“How to Write a Financial Contract” (2003)
● A. Biryukov, D. Khovratovich, S. Tikhomirov
“Findel: Secure Derivative Contracts for
Ethereum” (2017)
s-tikhomirov.github.io
Image Credits
● ING contract photo: Sergei Tikhomirov
● Punch card: Arnold Reinhold
https://commons.wikimedia.org/wiki/File:FortranCardPROJ039.agr.jpg
● XML: Dreftymac https://commons.wikimedia.org/wiki/File:XML.svg
● Moscow City: Kirill Vinokurov
https://www.flickr.com/photos/kvinokurov/14658257525/
● Findel paper photo: Sergei Tikhomirov
● Cryptocurrency Art Gallery
https://www.flickr.com/photos/namecoin/22995486509

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Financial Domain-Specific Languages

  • 1. Financial Domain-Specific Languages Sergei Tikhomirov, University of Luxembourg, 30 March 2017
  • 2. You Signed a Banking Contract
  • 4. Why You Didn’t Read It ● Long ● Way, way too long ● Specialized vocabulary ● Complex sentences ● Written for lawyers, not for mere mortals
  • 5. Can Computers Help? ● Can computers help us understand contracts? ● Only if they understand the language!
  • 6. Computer Languages ● Precise ● Well-structured ● Machine-readable
  • 7. Types of Computer Languages ● Markup langs: text structure (HTML) ● Modeling langs: objects & relationships (UML) ● Programming langs: computation (Java)
  • 8. Objects of Financial Domain Accounts, transactions, contracts
  • 9. Who Gets What and When Contract defines a set of transactions. ● Who pays whom? ● When? ● Under what conditions?
  • 10. Naive Approach (Imperative) ● Describe how a computer should proceed ● What if we forget a corner case? ● Hard to automatically reason about “If today is 2018-01-01, send $100 from X to Y”
  • 11. A Better Approach (Declarative) ● Describe what we want to achieve ● Define small set of primitives ● Combine them to define new contracts
  • 12. Declarative Contract Examples ● One($) ● Give(One($)) ● Scale(100,One($)) ● C := When(2018,Scale(100,One($))) ● And(Give(C),Scale(90,One(£)))
  • 13. Our Contribution ● In our recent paper, we combine: ● Precise declarative financial language ● Trustless execution via blockchain
  • 14. Conclusion ● Declarative language for finance is a good idea ● Combined with blockchain – even better!
  • 15. Questions? ● S. L. Peyton Jones, J-M. Eber “How to Write a Financial Contract” (2003) ● A. Biryukov, D. Khovratovich, S. Tikhomirov “Findel: Secure Derivative Contracts for Ethereum” (2017) s-tikhomirov.github.io
  • 16. Image Credits ● ING contract photo: Sergei Tikhomirov ● Punch card: Arnold Reinhold https://commons.wikimedia.org/wiki/File:FortranCardPROJ039.agr.jpg ● XML: Dreftymac https://commons.wikimedia.org/wiki/File:XML.svg ● Moscow City: Kirill Vinokurov https://www.flickr.com/photos/kvinokurov/14658257525/ ● Findel paper photo: Sergei Tikhomirov ● Cryptocurrency Art Gallery https://www.flickr.com/photos/namecoin/22995486509