Research on Blockchain Technologies in Bidding Systems

Abstract

Due to the popularity of the Internet, people are increasingly accepting the integration of electronic service applications. Whether it is communication, trading, or transportation, these have gradually changed people's lifestyles. Electronic auctions have also become one of the popular e-commerce activities. Electronic auction systems usually include bidders, auctioneers, and third parties that allow bidders to bid via the Internet. It replaces the inconvenience and low efficiency of traditional tendering. Electronic auctions can be divided into two types: open bidding and sealed bidding. The public bidding method is to continuously increase the bidding price until no bidder is willing to pay a higher bid. The deadline has arrived. The highest bidder is the winner of the public tender. Since bidders can bid multiple times, this bidding method is also called multiple bidding. The bidding method for sealed bids is that the bidder can only send the bill once. Once the deadline arrives, the auctioneer will compare all bills. The bidder with the highest bid is the winner of the ＂sealed bid＂. Since bidders can only bid once, this bidding method is also called a single bid auction. Both bidding methods have their practicability. But no matter what kind of bidding. It should rely on intermediaries to allow buyers and sellers to conduct transactions. Lead to trust and transaction cost issues. In this regard, we will use blockchain technology to develop smart contracts for public bidding and sealed bidding. It uses the characteristics of blockchain decentralization and low transaction costs to improve the shortcomings of electronic auctions.