Online Auction System using Ethereum Blockchain

Overview

Client is one of the key auctioneers of a reputed Auction House in UK

Business Need

Though online auction systems have eliminated the physical boundaries of traditional auction systems, it has made it easier to commit fraudulent activities. For example, people place fake bids with unfair bidding amounts to increase the final price of the product under auction, to benefit the seller. Or some buyers use a fake account to discourage other online bidders / competitors from bidding by virtually increasing the price and withdrawing the bid at the very last moment. This helps the actual buyer to win the auction with a lower price. Client felt that there is a serious need to control such frauds in online auction systems, so they hired our ethereum developers to help them build a robust and secure online auction system using ethereum blockchain based smart contracts.

Client Situation

Client wanted to have an online auction system in blockchain that can easily address challenging unethical issues in online auctions. The blockchain based online auction system / online bidding system should also facilitate a highly secured process for sellers and buyers to participate in the online bidding process. Engaged stakeholders should be able to transact safely through a distributed online environment. Bidding system should also offer some unique features compared to various online auction systems available in the market.
Frontend: AngularJS
Backend: NodeJS & Java
Blockchain: Ethereum, Web3.JS, Truffle Framework, DApp, Solidity
Hosting Platform: AWS Cloud

Recommended Solution

Our Ethereum developers with good experience in ethereum smart contract development implemented Hybrid Blockchain enabled distributed computing solution to meet the client expectations. The Online Auction System developed by our ethereum developer enabled Sellers to offer auction items with minimum expected amount and the time duration until any potential buyers can bid for the item. This online auction system will grow through Blockchain (interlinked blocks) having incremental bid amounts placed. At the end of active time duration of any auction item, the winning buyer is declared through Blockchain based smart contract (bid) that is enforced and executed in an automated escrow fashion.

Key Features & Accomplishments:

  • Online Auction System was implemented using Ethereum Blockchain
  • Immutability of each bid was being registered
  • Tracking and verification of bidding history was easier
  • ‘No bid cancellation’ feature was enabled to ensure fraud free Auction
  • Smart contracts (decentralized applications) written in Solidity
  • Ethereum node interactions using HTTP, WebSocket and IPC connection
  • Advanced Shipment Handling
  • Auto Invoicing & Payments
  • Secured & transparent ledger system to encompass all bidding transactions

Results

  • Our Ethereum developers provided low cost smart contract development using Ethereum Blockchain
  • Robust and scalable online auction system was built
  • Reliable to deal under irrevertible auction environment
  • All transactions go through encrypted distributed ledger system. So no hacking possible!
  • Appealing user experience
  • Growing number of site visitors
Download PDF