Arbitrage with mastercoin

Thanks for the feedback on the paper. :)

Actually the paper footnotes a claimed successful Vector76 attack with a double spend that was done several times in September of this year.  Not sure if it really was successful.  The operator of the gambling site claimed it was.

Arbitrage

While the market timing attack is the most interesting part of the paper, the broader problem for in-blockchain exchange markets will be arbitrage.

Algos on the Nasdaq and other exchanges currently fight for milliseconds of arbitrage.

Bitcoin-based exchanges will not be able to improve much on 5 minute latency for confirmation of trades.  So a blockchain embedded exchange will generally be perceived as having much lower "resolution".  It doesn't mean people won't use it or that it cannot be done.  It simply means that off-blockchain exchanges with very low latency will generally be preferred by algo traders.

Best regards,
Ken