Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Building Trust Takes Time: Limits to Arbitrage in Blockchain-Based
  Markets   Distributed ledger technologies replace central counterparties with
time-consuming consensus protocols to record the transfer of ownership. This
settlement latency slows down cross-market trading and exposes arbitrageurs to
price risk. We theoretically derive arbitrage bounds induced by settlement
latency. Using Bitcoin orderbook and network data, we estimate average
arbitrage bounds of 121 basis points, explaining 91% of the cross-market price
differences, and demonstrate that asset flows chase arbitrage opportunities.
Controlling for inventory holdings as a measure of trust in exchanges does not
affect our main results. Blockchain-based settlement without trusted
intermediation thus introduces a non-trivial friction that impedes arbitrage
activity.

31
The categories of this paper are: ao-sci
10
The categories of this paper are: q-bio
35
The categories of this paper are: mtrl-th
1
The categories of this paper are: cs
7
The categories of this paper are: hep-th
26
The categories of this paper are: bayes-an
16
The categories of this paper are: stat
23
The categories of this paper are: solv-int
13
The categories of this paper are: quant-ph
2
The categories of this paper are: math
22
The categories of this paper are: chao-dyn
29
The categories of this paper are: funct-an
14
The categories of this paper are: math-ph
11
The categories of this paper are: hep-lat
25
The categories of this paper are: patt-sol
37
The categories of this paper are: supr-con