Electronic auctions, or e-auctions, are digital, centralized auctions that facilitate the sale of state assets. However, given their centralized design, they are prone to manipulation and corruption. A blockchain-based e-auction system can prevent graft and increase auction security and efficiency.
Check out how an Exonum blockchain improved the e-auction system in Ukraine, doubling the number of participants in just a year.
Exonum Blockchain: Your Platform for Trust
Issues Facing Centralized
E-auctions
E-auctions
- Lack of transparency
- Centralization of processes
- No interoperability
- Risks of corruption
- Low trust from bidders
- Security risks
How Exonum Blockchain
Transform E-auctions
Transform E-auctions
- The data about each auction is stored in the blockchain
- The blockchain data is stored in multiple places
- Every computer that stores a copy of the blockchain must approve each addition, protecting against unauthorized changes
- A special protocol safeguards the connection among the servers
- Each transaction/change to the data is signed with a secure cryptographic “digital signature” which is published to a public blockchain for posterity
- If any information about the bid changes, the digital signature would change as well. This enables everyone to be able to verify bid information
- If someone try to compromise the blockchain and edit the digital signatures, the attempt would be immediately noticeable and rejected by the network