Making Auctions safer, faster and more reliable through Blockchain Technology — Part 1/2

This article will explain the array of benefits of DomRaider on the Auction Market.

Online purchases and online marketplaces face huge problems: among them, the lack of trust and the huge number of fraudsters taking advantage of people who only want to buy something.

The Blockchain now plays a prominent role in the world of an auction thanks to DomRaider ecosystem.

Blockchain applied to Auctions ?

With a global market turnover amounting to billions of dollars, it is easy to understand how the auction world can be the breeding ground for new opportunities. Though it may a thriving market it remains tedious and disparate, no matter how it is managed. With all of the complex moving analysis that must be accounted for, auction houses are forced to seek new ways to properly manage them.

The sensitivity of timing bids for digital or physical bidders and the entry barrier for participants wishing to bid, as well as the cumbersome centralized platforms being used are all issues the auction world is facing right now.

Bidders want the certainty that bids are received correctly and logged immediately so that they aren’t forced to pay more for a product than they have to. Consumers also want the option to bid on the products they want to without have to seek a centralized management approval.

The limitations of current auctions

All the online auction platforms that currently exist are based on one centralized operation. They rely on proprietary and closed software. As a result of this centralization, these platforms share the same limitations:

 

• Auctions are not transparent. Bidders have no way to ensure the origin, authenticity and legitimacy of a higher bid. Only the organizer has this information.
• Auctions are not open. Every bidder must use the organizer’s platform for registration, authentication and bidding. So, as there are a huge number of auction organizers worldwide, a bidder must register many times over. They must therefore manage many different accounts and learn how to use a new and different interface every time.
• The auction ecosystem is very limited. Because no one standard exists, each organizer has developed its own bidder interface and tools. But this proliferation has brought quality down. For instance, most auction organizers don’t have a mobile application — or if they do, the app is not user-friendly. Similarly, it is almost impossible to find associated auction services even though there is a high level of interest from buyers for services ranging from purchase finance to delivery.

Multiple worldwide auction platforms with a unique set of standards each mean that bidders face additional limitations regarding payment methods or international payment fees (exchange rate, charges and commissions).

In the world of LIVE auctions, physically run by an auctioneer, most are not yet connected through an online platform. Even when this is the case, once again, the ecosystem is of extremely poor quality: limited ergonomics, poor quality audio and video streaming, lack of delivery options…

Currently, auctioneers must go through only one provider that sets its own tools and platform. No open solution exists that would allow auctioneers to directly and easily expand the audience for worldwide sales.

DomRaider comes into play with its Blockchain-based Auction Platform

DomRaider is going to launch a new, open, decentralized platform that is dedicated to real-time management of any auction, worldwide, be it online or live.

We want to establish the fundamentals of an ecosystem that is accessible to all, with unlimited functionalities and potential. In effect, everyone will be able to use the platform in order to sell, bid, organize an auction or offer a service on the ecosystem.

The functionalities available on our platform will therefore expand progressively and quickly, as they get more widely adopted by the community and by auction professionals.

The DomRaider solution goes as follows:

 

• Scalable, reliable and transparent: thanks to the distributed repository protocol, each operation will be registered within the network in a way that is transparent, publicly verifiable and virtually impossible to falsify.
• Interoperable: the client will be able to participate in auctions run by various worldwide auction organizers — using just one interface. That way, each bidder will be able to select from numerous applications or interfaces in order to follow or participate in any auction in the world without changing their habits. This interoperability will also make it possible to link to other distributed repositories such as those processing identity or background data.
• Fast: in order to remain compatible within the “real time” constraint of live auctions (that is, those physically run by an auctioneer), the blockchain will offer the technical consensus mechanism detailed below, ensuring that each higher bid is validated in less than 1 second.
• Very low transaction cost: the technical consensus mechanism selected will make it possible to secure highly reduced transaction costs based on new tokens. This will make it very easy to join the blockchain.

Thanks to this decentralized platform, DomRaider will provide a new hassle-free tool to help auction houses online and offline to better manage their auctions and reach new clients worldwide. But how will this platform be implemented? How will DomRaider take advantage of its experience in domain name auctions to test drive a first functional version of the platform? We will answer these questions in an upcoming article so stay tuned!

Handy links:

• Website: www.domraider.io,
• Whitepaper: http://bit.ly/whitePaper,
• Teaser: http://bit.ly/PresentationICO
• Telegram chat: https://t.me/Domraider_Chat
• Twitter: https://www.twitter.com/DomRaider
• Facebook: Domraider-1432606216988548
• Slack: Slack DomRaider
• Linkedin: company page
• Parent company website: domraider.com
• Video presentation: youtube.com