Programming Language Lira to Place Derivatives on Blockchain Developed by eToro
The exchange platform based in Israel, eToro has revealed about their innovation that will make derivate trading simple. The multi-asset venture company has named the programming language as Lira.
With the presentation of this programming language $500 trillion, OTC trading derivatives will be transported to the blockchain.
The chief blockchain scientist of the company Omri Ross expressed his views on Lira before Ethereal Summit that will take place in Tel Aviv on Sunday. As per him, Lira will decrease the hazard involved to settle down the financial contracts. It will also create new derivative on the blockchain of Ethereum.
According to him, because of the broad nature of the Ethereum blockchain, 45% of the smart contracts have an error. The formal verification and mathematical equation of the language will help in delivering the assured result.
It is a domain-specific programming language that ensures the self-execution of global settlements. It will also be useful for monitoring and automatic trade reporting. Secure tracking system and compression enabled by the language will increase collateral requirement efficiencies.
The scientist joined the organization in March this year and has helped in the development of 12 stable-coins.
The demo trading platform by the company shows it will be useful for both institutional and retail investors for trading derivatives. The exchange uses Lira for the complete testing series of contracts. The newly developed language will swap various cryptocurrencies, will write complex settlement terms and set varying time limits for trade.
The chief and founder of eToro Yoni Assia has said that Lira will bring more clearness and capital effectiveness to the OTC derivative market. Post trading activities like clearing of derivatives are expensive and is also a matter of systematic risk. Blockchain technology provides a secure environment for the settlement. With the launch of Lira, they can transform the derivative market and open up new possibilities.
The current scripting language of blockchain is error-prone and requires elaborate design requirements. This makes it inappropriate for scripting financial contracts. The native languages also present attack opportunity to the hackers.
Previously the organization supported the crypto society with ventures like GoodDollar and colored coins. Professor Omri Ross led the development of Lira in eToro X labs. The scientist will be holding a workshop session in Osaka on Lira during upcoming Devcon.