A Novel Auction Blockchain System with Price Recommendation and Trusted Execution Environment

Abstract

Online auctions are now widely used, with all the convenience and efficiency brought by internet technology. Despite the advantages over traditional auction methods, some challenges still remain in online auctions. According to the World Business Environment Survey (WBES) conducted by the World Bank, about 60% of companies have admitted to bribery and manipulation of the auction results. In addition, buyers are prone to the winner’s curse in an online auction environment. Since the increase in information availability can reduce uncertainty, easy access to relevant auction information is essential for buyers to avoid the winner’s curse. In this study, we propose an Online Auction Price Suggestion System (OAPSS) to protect the data from being interfered with by third-party programs based on Intel’s Software Guard Extensions (SGX) technology and the characteristics of the blockchain. Our proposed system provides a smart contract by using α-Sutte indicator in the final transaction price prediction as a bidding price recommendation, which helps buyers to reduce the information uncertainty on the value of the product. The amount spent on the smart contract in this study, excluding deployed contracts, plus the rest of the fees is less than US$1. Experimental results of the simulation show that there is a significant difference (p < 0.05) between the recommended price group and the actual price group in the highest bid. Therefore, we may conclude that our proposed bidder’s price recommendation function in the smart contract may mitigate the loss of buyers caused by the winner’s curse.

A Blockchain-Based Auction Framework for Location-Aware Services

“…In addition, the cumulative weight for both participants is assigned to be 10. As expected, the highest reduction in the cumulative weight of bidder "B" occurs when the cumulative weight for buyer "A" is equal to MAX CW (10). The weight of the feedback provider plays an essential role in the SI calculation.…”

“…[4], the authors proposed a collusion-resistant blockchain eauction to avoid collusion among buyers through introducing parameters with a stochastic nature that are part of the auction processes. To reduce the probability of overbidding (winner's curse), Shih et al [10] proposed a blockchain-based auction system with price recommendation capabilities. The price recommender component gives the bidder the advantage by predicting the price (value) of the auctioned items.…”

Blockchain-Based Recommendation System: A Review Focusing On Security Aspect

“…After analysis studies, although several researches have been done in the blockchain usability domain, there are still limited articles in security blockchain issues. FIGURE 3 shows several major trending topics needed for the blockchain and recommendation system domain research [45,46].…”