ISO 9001:2015

INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN COMMERCE, MANAGEMENT & SOCIAL SCIENCE (IJARCMSS) [ Vol. 9 | No. 2 (I) | April - June, 2026 ]

Historical Trade Networks and the Digital Global Economy: Re-Examining the Silk Road and Algorithmic Trade Systems

Dr. Iti Raj Sharma

This article examines the structural and functional parallels between the ancient Silk Road trade networks and contemporary algorithmic trading systems that underpin the digital global economy. Drawing on historical scholarship, network theory, and financial economics, the study argues that both systems share fundamental organizing principles: decentralized nodal architecture, layered trust mechanisms, information asymmetry as a competitive tool, and vulnerability to systemic disruption. The Silk Road, which connected Eurasia from approximately the 2nd century BCE to the 15th centuryCE, facilitated the movement of goods, capital, and knowledge across vast distances through a network of intermediaries, caravanserais, and diasporic merchant communities. Contemporary algorithmic trading systems replicate this network logic in digital form, with exchanges, dark pools, and co-location facilities serving analogous roles. By juxtaposing these two systems, this article contributes to an emerging interdisciplinary literature that applies historical institutionalism to the study of financial market structures. The findings suggest that historical trade networks offer underutilized lessons for understanding resilience, regulatory design, and geopolitical risk in modern digital markets.

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