Since the first traditional auction in 500 B.C. through to the digital incarnations of today, this age-old process of buying and selling assets has struggled to introduce real improvements in efficiency, transparency, and accessibility. This comes down to three main problems.
Firstly, traditional auctions are typically centralized. This means that they are controlled by a single auction house or broker, which can lead to a lack of transparency and fairness.
Secondly, they can be expensive for sellers, who may have to pay significant commissions to the auction house or broker. Plus, traditional auctions can be difficult to access for inexperienced buyers due to the complex and intimidating bidding processes that follow their own set of rules, customs, and terminologies.
Lastly, when held in person, traditional auctions are often limited to a specific geographic location, which can curtail the pool of potential bidders and buyers.
Decentralization offers the potential to solve all these issues, opening the way to a new type of auction: one that is transparent, trust-less, secure, and indelibly recorded through blockchain technology.
Web3 auctions are powered by smart contracts, which are self-executing with the terms agreed between buyer and seller written into tamper-proof code. And in a major shift from traditional auctions, participants can also bid on assets using cryptocurrency. This means anyone with an internet connection and a crypto wallet can take part, regardless of their location or financial status. This opens up new opportunities for people to sell or bid on assets that may once have been out of reach.
Since our September 2020 launch, Bounce has grown into one of the most popular decentralized auction platforms in the Web3 ecosystem, particularly esteemed by buyers and sellers in the DeFi and NFT spaces. We also offer the widest selection of auctions in Web3: from the popular English auction, where the bidding starts from the lowest possible price, through to innovative playable auctions, where participants compete in simple games for the right to buy assets.
Unlike centralized auction platforms, Bounce is non-custodial, which means users retain control over their funds and assets at all times. Powered by blockchain, Bounce’s platform also uses smart contracts – not people – to manage auctions and distribute funds, ensuring a process that is both transparent and secure.
One of the unique strengths of Bounce is our integration with other DeFi protocols, including, most recently, Arbitrum One for efficient and affordable Ethereum transactions. Bounce’s integrations enable users to easily swap between assets and participate in auctions using their preferred tokens.
Our platform allows for the creation of custom auctions, enabling users to set their own parameters such as reserve prices and auction duration across various auction types.
Auction creators can also allocate a portion of the proceeds to specific beneficiaries or charities, providing a straightforward way to give back to the community. They can also opt to earn a percentage as a fee, incentivizing them to create high-quality and attractive auctions.
We’ve entered new auction sectors, expanded our marketplace offerings and forged new development partnerships to increase the range of benefits and features for users. We’ve also added fairness mechanisms to our auction processes to prevent fraudulent activity and an innovative regret function for fixed swap auctions that allows participants to withdraw their bids at any time during the process.
Perhaps most importantly, Bounce V3 introduced Auction as a Service (AaaS).