Decentralized Auctions on Burnt Finance
Burnt Finance defined the first two types of auctions — English and Dutch — and how each one serves to meet the needs of a rapidly growing market.
🔹Fully Centralized Auction Houses
Traditional auction houses such as Sotheby’s and Christie’s present immense physical, economic, and social barriers to entry. First, the art itself must pass through a central clearing house and be approved by a centralized authority before an auction can be started. These opportunities are typically reserved for extraordinarily famous artists on the creator side, and ultra-high-net-worth individuals on the bidder side.
Even centralized auction houses that allow for minting and trading of assets such as NFTs have their drawbacks. In order to be listed, an artist must be accepted by the centralized governing entity. In addition, users are unable to retain their anonymity and must divulge personal information which in a way is antithetical to the ethos of crypto itself.
🔹Ethereum-based Auction Platforms
There is another cohort of auction houses that claim to be decentralized but are largely centralized in nature. Most of these platforms operate on the Ethereum blockchain which unfortunately means that they suffer from exorbitantly high gas fees and slow transaction times.
Most creators and buyers alike are kept out since the high fees often negate any potential avenue for users to enter. In many ways, the current auction protocols today exacerbate the issues prevalent in the world of centralized auction houses rather than helping to solve them.
Burnt Finance provides an auction platform that is available to everyone in an entirely decentralized setting. They are uniquely poised to match centralized counterparts in terms of both speed and security, minus the high gas fees and risks thanks to our state-of-the-art technical infrastructure on Solana.
As part of mission to diversify the auctions ecosystem, Burnt Finance will support a plethora of auction types in a fully decentralized setting.
What is Burnt Finance?
Burnt Finance is the first fully decentralized auction protocol on Solana. Burnt allows users to take auctions into their own hands, enabling the minting and auction of any asset in an entirely permissionless ecosystem. The platform can support auctions for synthetics, NFTs, digital assets, and much more. Given its unique Solana-based architecture, Burnt is able to achieve unparalleled transaction speeds with near zero fees. Burnt is backed by industry leaders such as Alameda, Multicoin, Vessel Capital, Defiance, and Injective Protocol.
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