A sound and complete algorithm for distributed commerce transactions

Summary.

In a multi-party transaction (also called a distributed commerce transaction) agents face risks from dealing with untrusted agents. These risks are compounded in the face of deadlines, e.g., an agent may fail to deliver purchased goods by the time the goods are needed. We characterize the risks, and present a distributed algorithm that mitigates these risks, by using pairwise exchanges and trusted intermediaries. The algorithm generates a safe sequence of actions that completes a commerce transaction without risk, if such a sequence exists. We show that the algorithm is sound (produces only safe multi-agent action sequences) and complete (finds a safe sequence whenever one exists). The initial restriction of guaranteeing safety even when none of the principals trusts another can be relaxed in some cases, so we show how to handle principals that do trust each other and interact directly rather than through a trusted intermediary.