Dual-Mode Blockchain Based Auction System for Secure and Anonymous Bidding

Abstract

Traditional selling systems often limit products to local markets and rely heavily on intermediaries, resulting in reduced profit margins, inconsistent quality, and limited market reach. Maintaining consistent quality and ensuring market transparency remain significant challenges in these legacy frameworks. To address these issues, this project proposes a secure and efficient Double Auction System for multi-category product trading. To enhance security, privacy, and trust, the project integrates advanced cryptographic mechanisms. zk-SNARKs (Zero-Knowledge Succinct Non- Interactive Arguments of Knowledge) are employed for sealed bidding, ensuring that both bidder identities and bid values remain hidden while maintaining mathematical verifiability. Conversely, Linked Ring Signatures are used for open bidding, allowing bid values to remain transparent while masking the identities of the bidders. A Commit-Reveal Scheme is implemented to prevent bid manipulation and ensure fairness during the submission phase. Additionally, a Reputation Score Algorithm incentivizes honest participation by rewarding users with a trust score based on their historical behavior. Finally, Blockchain technology is integrated via a private blockchain to record all auction data and reports in an immutable and tamper-proof manner. This multi-layered approach ensures a fair, secure, and sustainable trading ecosystem, benefiting both producers and buyers across diverse sectors.