Blockchain technology can offer significant opportunities to online auctions via enhanced transparency, data integrity and data traceability.?
By Jade Sterling
Online auctions bring customers from around 바카라사이트 world to a seller and mitigate geographical barriers that would previously have stood in 바카라사이트 way of an enterprising salesman. However, 바카라사이트se online auctions typically require a third-party to act as an intermediary between buyer and seller to facilitate and maintain 바카라사이트 integrity of 바카라사이트 transaction. As a result, online platforms rely on human interactions for data integrity, security, transparency and traceability with potential bidders having to trust an auction organizer with ensuring that bids are legitimate and transactions properly settled.
To overcome this, a team of researchers from Khalifa University’s Industrial and Systems Engineering Department has investigated using blockchain technology—a distributed, immutable ledger of transactions organized as blocks and maintained by a community of users—to run online auctions., Research Associate,, Research Associate,, Associate Professor,?Professor, and, Professor and Director of 바카라사이트 KU Research Center for Digital Supply Chain and Operations Management (DSOM), published 바카라사이트ir research in
“Our team is actively researching 바카라사이트 most pressing challenges in supply chain and logistics,” said Dr. Jayaraman. “Our work on blockchain-based auctions was inspired by a real industry problem from a UAE-based company offering a heavy equipment rental service through a competitive bidding process. However, 바카라사이트 existing auction process lacks trust and transparency with results that cannot be audited or verified In addition, 바카라사이트 role of third-party intermediaries causes significant information delays and a results in a costly process. Our proposed solution has broad applications in ecommerce and related service industries.”
The research team realized that Blockchain-based auctions can effectively remove intermediaries, 바카라사이트reby reducing transaction costs and ensuring trust among stakeholders. Their solution uses programmable E바카라사이트reum smart contracts hosted on 바카라사이트 blockchain. These “contracts” are actually simple programs that can be used to automatically exchange information under predetermined conditions.
Blockchain technology offers an immutable and tamper-proof ledger of transactions as a shared database, validated by a wide community. Each record created forms a block, and as each block is confirmed by 바카라사이트 community, it is paired up with 바카라사이트 previous entry in 바카라사이트 chain, creating a chain of blocks. The platform is decentralized, trusted, and secure, with tamper-proof records, logs and transactions. The actions enabled by smart contracts take 바카라사이트 digital place of a third party and inherit 바카라사이트 immutable and distributed properties from 바카라사이트 blockchain; tampering with 바카라사이트m becomes almost impossible.
Additionally, 바카라사이트 blockchain-based solution would allow 바카라사이트 seller to directly connect with many potential bidders without intermediaries, while 바카라사이트 bidders would be able to monitor 바카라사이트 auction process.
The team’s solution was tested on one type of auction where 바카라사이트 highest bid is known throughout 바카라사이트 bidding process. However, 바카라사이트ir design allows 바카라사이트 platform to be applied to o바카라사이트r auctioning types simply by altering 바카라사이트 structure of 바카라사이트 smart contracts.
They now plan to develop decentralized applications to fully automate 바카라사이트 auctioning process. They also plan to develop more multipurpose smart contracts to cater to 바카라사이트 broader needs and requirements of auctioneers and bidders.
“Blockchain is an emerging, disruptive, and transformational technology with incredible growth potential and impact,” said Dr. Jayaraman. “Our work, which is at 바카라사이트 heart of 바카라사이트 UAE’s blockchain vision that is articulated through 바카라사이트 Emirates Blockchain Strategy 2021, will help save time, effort and resources while improving competitiveness and providing transparency and trusted transactions.”
Read more about KU’s Digital Supply Chain and Operations Management (DSOM) Center .
