How Blockchain can be used in Auctions & How it works?

How Blockchain Can Be Used In Auctions?

The Blockchain now plays a prominent role in the world of an auction. Auctions are the next best method to do a deal on a commodity. Our world is a place where every day, plenty of new commodities get released for the consumers use, like oil and soya. These commodities are synonymous, as oil at one place is exchangeable for a barrel from another place as an exchange for an item to another. Exchanges play a major role by equaling with the market price. This directly affects the supply with demand for these goods.

Those goods which are unique cannot have a quoted price because of the attributes they maintain. Due to this factor, the market that can quote an efficient price for every unique item according to the standards. Therefore online platform like eBay is the hub to do the auction. As per now, it gives out the best price for the seller, thereby making it a success.

There are plenty of exchanges for goods and mostly represented by tokens. In this digital era, it is very easy to find an exchange to buy tokens like Bitcoin. Now the distributed apps and established platforms assemble at the blockchain. Once it’s done it will all merge as one. On the basis of metadata acquired there will be a base for non-changeable unique goods. The best way to find goods at a price according to the will of the owner is to always go by the process of this auction as to achieve the best deal.

How does it work?

The best place to run an auction is a decentralized platform so that the owners or the company can have a direct entry to this occurrence. Users can auction off anything on the chain that is available to them. The smart contract takes holds the auctioned asset and thereafter it manages bids associated

The workflow is as follows:

  • Seller is the candidate or the user who creates the auction
  • The Seller defines the ownership of the asset to auction contract with the commencement of the auction, thereby activating it.
  • The users who take part in the auction bid on the item, and if the amount raises more than the bid amount it is available for withdrawal process.
  • At the end of the auction, if the reserve price hits, the winner receives the item. If not then the opposite.

The digital auction is now being a trend and has global followers who believe that this is the next big thing.

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