Blockchain Glossary

Auction

Auction

August 10th, 2021   |   Updated on March 11th, 2022

Common name for several types of sales where the price is neither set nor arrived at by negotiation but is discovered through the process of competitive and open bidding. The two major types of auction are (1) Forward auction in which several buyers bid for one seller’s good(s) and (2) Reverse auction in which several sellers bid for one buyer’s order. An auction is complete (and a binding contract is created) when a bid is accepted by the seller or the buyer (as the case may be).