Blockchain technology has come a long way that is changing the world with its transparency, security and decentralization, in the same way it will be changing the auction industry for good. An auction is a way to sell a product during which a seller proposes a product or services for sale, and bidders’ wills to buy it. Auctions have been taking place for a long time. Over the years, many styles of auctions were invented. The most well-known is English auction, during which the bidder who offers the very best value wins the auction. Dutch auction is another kind, where the vendor sets up an initial value and until a bidder accepts this value the value is lowered. Sealed Bid auction as is suggested by the name are auctions that are not public. All bidders at the same time submit sealed bids and therefore the highest bid wins the auction. Vickery auction may be a sealed bid auction wherever the very best bid wins, but the winner solely pays the second-highest bid price.
After the evolution of the internet and its easy access, along with the birth of cryptography the utilization of digital systems to shop for or sell products became common. Following this trend, auctions began to require place on-line, referred to as e-auctions. The e-auctions market is big, as incontestable by websites like eBay. E-auction systems typically apply cryptological mechanisms to be secure, however they use a centralized authority to manage transactions between sellers and bidders.
With Bitcoin and Ethereum, the blockchain technologies have become an important part of the digital world. Essentially, a blockchain is a distributed and decentralized ledger that is immutable and works on the accord of the peers. Moreover, blockchain platforms support smart contracts that are secure and represent an agreement to be mechanically enforced. Our goal is to design a secure auction protocol supporting a blockchain.
Libonomy’s project is to reinvent the way digital platforms are used today. Libonomy is a fifth-generation autonomous blockchain powered by an Artificial Intelligence-based consensus engine at its core. It operates a fully secured and user-friendly platform providing a fully automated system run by an AI engine to carry out all the important tasks of users based on merit. The users will be able to use cryptocurrency and tokens to accumulate them or pay for many services. Libonomy offers advanced consensus algorithms to tackle the outdated methods. The AI engine allows a secure, decentralized, automated, and scalable platform. It has overcome the weaknesses of other blockchain with its interoperability function that connects blockchain together. Libonomy has five important layers which are its backbone, the Network Layer, Consensus Layer, Blockchain Layer, Component Layer and Application Layer. All the layers have their specific functionalities that enhance the whole platform.
Libonomy is offering to build a platform for the purpose of auctioning online with ease and facilitating a security for bidder and seller. Transactions take place to provide both parties not only an easy method of payment but the most reliable available. Our team of dedicated developers have implemented Hybrid Blockchain which enables distributed computing solutions for clients. Hybrid Blockchain is programmed not only to serve as a public blockchain but can be utilized as a private blockchain. Organizations require a private blockchain which can serve them to interact with public or private blockchains, write smart contracts and increase its scalability with the growth of the organization. The traditional auctioning methods cannot guarantee authenticity and legitimacy of the offers, however, with Libonomy’s auction based blockchain application the bidding history can be monitored and traced in an organized form. The application is going to be interoperable as it connects various sellers and bidders from across the globe who have an internet access and a medium to use it through.
The auction application provides a personal Dashboard to each user, where the bidding history, the amount spent, participation and the details on future auctions is available for the users to check and maintain. Libonomy Blockchain’s AI engine paves the way that can filter out the preferred biddings according to the previous history of the user, this helps in boosting the participation as well as is a way to give a chance to the user to look for similar searches without wasting much time. All the information on the bidded item is easily available for users to check out and become part of a bigger picture.
Various industries can utilize this application for their services and goods, including Art auctions, Real-estate, General items, household items, antique cars, or other antiquities. It will become easy to auction real-estate properties on this application as it eliminates a third party influence and saves the person’s time and money in selling a new house or paying the agent. The thorough details and all the nitty-gritty details will be available on the application which will attract more serious and trustworthy participants. Cars can be auctioned that are worth the value and the details of each bidding will be available on the application. Organizations and industries are turning towards blockchain based auctioning because it is improving the auction environment and providing a secure way of bidding in a decentralized way.It is becoming a traceable, transparent and process integrity technology that will take the auction industry to new heights.