Following up on part 1 of this article, we will now take a look at how DomRaider’s experience in auction sales through domain names will serve the project ans how it could be adopted by auctioneers worldwide.
Domraider’s experience to serve the development of the project
DomRaider’s stable auction platform for expired domain names is already an internationally recognized platform on which domain names are digital assets that are sold on auctions.
In itself, the decentralized platform will be a low level layer. It will only provide the technical fundamentals required (detailed below) to register transactions when bidders and higher bidders create sales.
But thanks to its open standard, it will be possible to superimpose many additional layers and modules to extend its functionalities and possibilities:
- Time limits
- Anti snipping
- Increments
- Payment guarantees
- KYC
- Legal limitations
- Escrow
- Instant purchase
- Reserve price
- Auctioneer payments
- Presentation of lots
- Real time audio and video streaming…
Hassle-free adoption process for professionals
Designed by an active player in the auction world, the DomRaider solution offers an immediate response to industry needs.
Professional auction organizers will be keen to connect their system to the network as it will give visibility to their auctions and help them acquire new buyers.
As the number of buyers increases, the prices will increase, allowing for immediate benefit.
Furthermore, the DomRaider solution will not require them to abruptly break away from the system they are used to. They will have the possibility to adopt it gradually, on their own accord, by breaking up the process in small functional stages. For example:
- Simple and direct publication of auctions on DomRaider, clients are not yet able to participate in the auctions,
- Publication and participation enabled for clients already registered with the organizer,
- Participation and payment (in paper money or cryptographics),
- Participation open to all, secured by a payment guarantee,
- Participation open to all with payment services, trusted third parties, delivery…
The key point is that professionals will get to adopt the DomRaider solution without the need to suddenly switch from their existing system.
The emergence of an ecosystem
Thanks to its open and standardized nature, anyone will be able to offer sales relating to interfaces or services, and to receive remuneration for these.
For example, a mobile developer could design and offer an application that acts as a universal interface for all blockchain auctions. It could receive remuneration through the automatic deduction of a commission on the sales generated through its application.
In this example, the auction organizer will have set the initial auction parameters, and whether or not an intermediary is authorized to deduct a commission. If yes, then they will be able to set a minimum tariff.
There fore allowing each party the freedom to implement their own rules sets a fair market value:
- The auction organizer will control the level of the commission that they is willing to pay,
- The distributors and publishers of client applications will be able to decide a maximum commission tari for featuring or valuing auctions that are underway.
Core of the network
Logging of bids and registration of transactions. Application of common rules
Advanced functions
Addition of advanced specified rules for organizers in order to adapt to different types of sale
Additional services
Providers of advanced services enhancing the functioning of the network
The BlockChain auctions applicated to … Initial Coin Offering?
I know what you’re thinking: it’s like in Inception! If you look a few months back, you may remember the Gnosis dutch auction, inaugurating a new selling mechanism for Initial Coin Offering. Vitalik Butterin explained his thoughts about Token Sales Models and highlighted the importance of Gnosis-style reverse dutch auction ICO.
First application of BlockChain Auctions with the purchases of Domain Names: our Proof of Concept
The current ‘dropcatching’ business of DomRaider and selling of domain names through auctions will be the first to migrate onto the new platform and will serve as a proof of concept. Domain Names will be as a digital asset that people can purchase.
As explained in the White Paper and the Roadmap, auctions organized by DomRaider will be the first to migrate onto the blockchain network. After the launch of our network with a set number of limited and controlled nodes (a contained latency network) and the development of the first interfaces for auction organization and participation, we scheduled the migration of the existing DomRaider platform to ensure compatibility with the decentralized network, and switch of client domain name auctions onto this platform.
And then, what’s next?
In parallel with the development of version 1 of our platform, our Research & Development team is working on a number of distinct proofs of concept to follow the evolution of different technologies. Depending on the way things evolve, the solutions assessed may be different to those originally envisaged and mentioned in the White Paper. We will communicate soon on the different stages of the blockchain development.
In parallel, and once the migration of our platform to the Blockchain ecosystem is over, we intend to progress through the following stages:
- Expansion and diversification of nodes in order to guarantee even more transparency and immutability
- Launch of a program of financial incentives to encourage other parties to set up nodes on the network
- Partnerships and occasional equity holding in companies that organize their own auctions in order to expand the offer
- The same will be done with providers of auction management tools for physical and online auction houses
- Financial incentives will be offered to third parties to contribute to the expansion of the ecosystem in order to intergrate specialist partners (specialist knowledge, KYC, financial guarantees, lenders, logistics, marketplaces…)
This new addition is part of a process and we are still working on adding the DRT on more exchanges to provide you with as many options as possible. We will keep you updated!
