A DECENTRALIZED, SMART-CONTRACT-DRIVEN FRAMEWORK FOR SECURE AND TRANSPARENT ONLINE AUCTIONS

Abstract

Background The online auction websites have become more susceptible to fraud, bid rigging, and centralization, rendering unfairness and lack of trust among the players. In this paper, we introduce a decentralized e-auction system, BlockBid, based on blockchain technologies and smart contracts that will ensure a safe, transparent, and non-tampering auction system. Objective The system distributes the risks of failure of single points by storing all the bids and transactions in an immutable distributed ledger, and avoids unauthorized changes. Smart contracts automate the rules of an auction and provide fair results without the involvement of the intermediaries. Materials and Methods BlockBid is also designed to combine sophisticated user authentication and encryption tools to safeguard sensitive data of participants, to reduce the chances of identity theft and tampering of bids. The framework allows various forms of auction such as English and sealed-bid and supports real-time tracking of bids and verifiable transaction history. Results According to the results of the experimental assessment, BlockBid increases system integrity, transparency, and the possibility of fraudulent actions is significantly lower than in the case of traditional centralized platforms. Conclusion The suggested solution reveals how the immutability of blockchain and automated regulation of the process will help redefine online auctions and offer an effective, reliable, and fair solution to the participants. The paper points at the opportunities of decentralized technologies to recreate secure digital marketplaces.