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Digitalized and Decentralized Open-Cry Auctioning: Key Properties, Solution Design, and Implementation
Luleå University of Technology, Department of Computer Science, Electrical and Space Engineering, Embedded Internet Systems Lab.ORCID iD: 0000-0003-0215-9798
Luleå University of Technology, Department of Computer Science, Electrical and Space Engineering, Embedded Internet Systems Lab.ORCID iD: 0000-0001-5408-0008
Luleå University of Technology, Department of Computer Science, Electrical and Space Engineering, Embedded Internet Systems Lab.ORCID iD: 0000-0002-4031-2872
Luleå University of Technology, Department of Computer Science, Electrical and Space Engineering, Computer Science.ORCID iD: 0000-0001-9801-7625
2024 (English)In: IEEE Access, E-ISSN 2169-3536, Vol. 12, p. 64686-64700Article in journal (Refereed) Published
Abstract [en]

Open-cry electronic auctions have revolutionized the landscape of high-value transactions for buying and selling goods. Online platforms such as eBay and Tradera have popularized these auctions due to their global accessibility and convenience. However, these centralized auctioning platforms rely on trust in a central entity to manage and control the processing of bids, e.g., the submission time and validity. The use of blockchain technologies for constructing decentralized systems has gained popularity for their versatility and useful properties toward decentralization. However, blockchain-based open-cry auctions, are sensitive to the order of transactions and deadlines which, in the absence of a governing party, need to be provided in the system design. In this paper, we identify the key properties for the development of decentralized open-cry auctioning systems, including verifiability, transaction immutability, ordering, and time synchronization. Three prominent blockchain platforms, namely, Ethereum, Hyperledger Fabric, and R3 Corda were analyzed in terms of their capabilities to ensure these properties for gap identification. We propose a solution design that addresses these key properties and presents a proof-of-concept (PoC) implementation of such design. Our PoC uses Hyperledger Fabric and mitigates the identified gaps related to the time synchronization of this system by utilizing an external component. During the chaincode execution, the creation and submission of bids initiate requests to the time service API. This API service retrieves trusted timestamps from NTP services to obtain accurate bid times. We then analyzed the system design and implementation in the context of the identified key properties. Lastly, we conducted a performance evaluation of the time service and the PoC system implementation in time-sensitive scenarios and assessed its overall performance.

Place, publisher, year, edition, pages
IEEE, 2024. Vol. 12, p. 64686-64700
Keywords [en]
Auctions, Blockchain, Blockchains, Decentralized systems, Distributed ledger, Fabrics, Iterative methods, Solution design, Synchronization, System implementation, Time synchronization
National Category
Computer Sciences Computer Systems Embedded Systems
Research subject
Cyber-Physical Systems; Cyber Security
Identifiers
URN: urn:nbn:se:ltu:diva-105444DOI: 10.1109/ACCESS.2024.3395791ISI: 001219245100001Scopus ID: 2-s2.0-85192206856OAI: oai:DiVA.org:ltu-105444DiVA, id: diva2:1857731
Projects
DigiPrimeRemaNet
Funder
EU, Horizon 2020, 873111EU, Horizon Europe, 101138627
Note

Validerad;2024;Nivå 2;2024-05-14 (hanlid);

Full text license: CC BY-NC-ND

Available from: 2024-05-14 Created: 2024-05-14 Last updated: 2025-10-21Bibliographically approved
In thesis
1. Decentralized Negotiations and Data Storage for the Circular Economy
Open this publication in new window or tab >>Decentralized Negotiations and Data Storage for the Circular Economy
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Digitalization represents a fundamental transformation in how we process information and conduct negotiations. It refines existing workflows, improves efficiency, enhances customer experience, and allows for better collaboration within ecosystems, promoting industrial sustainability and circularity.

The control and storage of digitalized systems are traditionally centralized, requiring trust in a third party in charge of processing data associated with negotiations, determining the outcome, and storing it. However, this centralized entity may not be trustworthy, as it may favor a particular party or misuse the information it processes. To meet this, there is a trend towards decentralized models. Recently, blockchain systems and Distributed Hash Tables (DHT) have gained popularity for decentralized transaction processing, and storage. While these systems offer many advantages for creating decentralized interactions and storing data, they need extensions to support negotiations as they are typically designed for executing single transactions rather than iteratively negotiating in time-constrained settings. Furthermore, decentralized data storage systems often do not support bidirectional relationships, capturing the need for event tracing in supply chains.

The scope of this thesis is the digitalization of negotiation mechanisms and data storage systems in the context of the circular economy. The early part focuses on designing price-only and multi-attribute open-cry auctioning systems and automating digitalized negotiations. This includes identifying key properties and features in open-cry auctioning systems and contract establishment procedures, consisting of machine and human-readable agreements. Additionally, the work on digitalized contract establishment extends to the representation of rights and obligations in access control. Then, various decentralized approaches are analyzed for transitioning open-cry auctions to decentralized models. From this, a system design for a decentralized auction system based on blockchain is presented, along with an implementation using Hyperledger Fabric. The latter part of the paper explores how decentralized systems can effectively represent and query highly interconnected data. It presents a solution using the Interplanetary File System (IPFS) to address these challenges. Furthermore, the implementation is extended to the realm of sustainability by examining Digital Product Passports.

The results of the work presented in this thesis show the potential of digitalized negotiations for the agreement of rights and obligations in access control and open-cry auctions and the limitations of their implementation using blockchain technologies. Lastly, it demonstrates the use of IPFS for storing and linking data and its ability to enable traceability and accountability throughout product lifecycles.

Place, publisher, year, edition, pages
Luleå: Luleå University of Technology, 2024
Series
Doctoral thesis / Luleå University of Technology, ISSN 1402-1544
Keywords
Digitalization, Decentralization, Blockchain, Circularity
National Category
Computer Systems
Research subject
Cyber-Physical Systems
Identifiers
urn:nbn:se:ltu:diva-107910 (URN)978-91-8048-608-8 (ISBN)978-91-8048-609-5 (ISBN)
Public defence
2024-10-24, E231, Luleå University of Technology, Luleå, 09:00 (English)
Opponent
Supervisors
Available from: 2024-06-27 Created: 2024-06-27 Last updated: 2025-10-21Bibliographically approved

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Chiquito, EricBodin, UlfSchelén, OlovMonrat, Ahmed Afif

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