Inspiration: We wanted to bring to life the ideas explored in an academic paper

What it does: We use smart contracts to manage the lifecycle of an option contract for ETH, including custody and distribution of payouts

How we built it We used Solidity to program the smart contracts, Metamask to interact with the Ethereum blockchain & web3.js and react.js for the front-end

Challenges we ran into: We wanted to create a child contract factory to prevent the parties to an option from having to deploy a contract themselves, as this reduces frictions in the user experience. We also had trouble with web3.js as it is not a well maintained library

Accomplishments that we're proud of: Despite its complexity and the short period available to programme, we were able to get the application to work and the mathematics are financially sound

What we learned: We realised that there is a lot of potential in Open Finance applications on Ethereum and that derivatives are likely to play a prominent role in the development of the industry and user adoption

What's next for Block Scholes: We would like to explore this further, expanding to other forms of derivatives such as put options and futures, and have discussions with decentralised exchanges

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