E-auction using Blockchain Mechanism

Abstract

Online auction system has experienced significant growth in recent years due to its convenience, accessibility, and wider reach. The COVID-19 pandemic has also accelerated the use of online auctions, as more buyers and sellers turn to digital platforms. But online auction systems have the vulnerability of fraudulent transactions. Hence, by incorporating blockchain technology with the exiting online auction system, a new electronic auction system can be developed to enhance the security in bidding operations. As certain blockchains employ smart contracts it is possible to automate the validity of all bidding actions. By leveraging a decentralized approach, all auction-related data and transactions are recorded on a blockchain that ensures immutability, transparency, and accountability. MetaMask also provides an additional layer of security, allowing participants to verify transactions before recording the data in blockchain. As security has become a critical aspect of electronic auctions the use of blockchain and smart contracts would be appropriate. By leveraging these technologies, a system can enable global participation in auctions that leads to a significant increase in prices and outcome for both buyers and sellers.