Due to quantum leaps in e-commerce and ever-changing consumer preferences, there is an increasing adoption and use of decentralized ledger technology (DLT) and blockchain in the online auctions industry.
This is mostly because online auctioning platforms such as eBay, Atomic Mall, Auctionmaxx, AuctionZip, Bonanza, eBid, uBid, Webstore.com, The SaleRoom, LiveAuctioneers, are one of the great means to roll out or bolster businesses using minimum effort and fewer costs. They offer a wide range of benefits to users like product variety, deals on prices, plus taking the edge off geographical barriers. Online auctions platforms provide a more biddable way to sell or buy inventory, hence providing a flexible addition to customers or sellers daily operations.
These auction sites offer different payment means including cryptocurrency, and fee structures depending on a business model. For instance, the largest auction site eBay Inc, sells blockchain-powered digital collectibles such as non-fungible tokens (NFTs), using regular fiat currencies, and the site plans to accept cryptocurrency as a means of payments easily and effectively soon or later.
NFTs is a form of virtual asset which exists on DLT. It is gaining more momentum especially during this period of the Covid-19 pandemic. NFT artworks are generating millions of dollars and several celebrities including musicians like the Kings of Leon rock group have already started to accept them for their latest album.
Now, the Turkish startup called Artiox has started using blockchain tech for art auctions, and currently, paintings worth about $500,000 have been sold through this DLT-driven auction platform.
At this moment, the platform is only selling oil paintings via this DLT-driven system because oil paintings are more durable than other artworks. Since the activities are happening online, more and more people will be able to participate in blockchain-enabled arts events that can generate huge amounts of money hence boosting the economy.
Generally, adopting and using a decentralized method with the help of blockchain can revolutionize the auction process, bypass third parties, guarantee transparency and lower down the transaction costs.