Entrepreneur Daryl Cusack is a wheelman of a new marketplace. In his opinion, after the Bitmit.net was closed no bitcoin-based auction sites were able to fill this gap, no one till now. Cryptoauction will be able to lead this wide open field.
During the London Bitcoin Expo Cusack will present a talk on decentralised corporate models “in order to achieve a people-not-profit corporate outlook”.
He explained his idea as it is time to “mitigate the risk of [bad actors on stage] by incentivising trust amongst users. Cryptoauction employ an innovative mechanism to discourage improper use of the site whereby those with good reputations are rewarded financially and those with bad reputations are penalized”.
The system of Cryptoauction is designed to help users “create the best possible outcomes for themselves without the need for a trusted third party”.
Each sellers identity are always protected. Moreover, users will be able to choose bitcoin, litecoin or primecoin crytocurrency as a payment for their items. Users will like to hear that they are able to post one listing a day absolutely for free on Cryptoauction. Subsequent listings could be posted for 2.9% + €0.10 each (capped at €95). It will help to prevent spam listings of endless junk items. Every single auction will last for one day till two weeks.
There will be two types of auctions: regular – where item can be sold for any price, and fixed-price auction, with or without a ‘buy it now’ price.
To avoid creating dust on the block chain and for profitability of company the Cryptoauction’s will take a cut of 1% on each sale, plus a $0.10 fee. A minimum user account activation fee is 0.0001 BTC per account.
Cusack assured that there will be no inappropriate and illegal items on Cryptoauction. They will be moderating listings “so you won’t find drugs there,” said Cusack.
They will also track users’ reputation in a review system to protect all good buyers and sellers from the less reputable ones. Moreover, users with high ratings will have special benefits, but if a user’s reputation starts going down, so will go down their rewards. So users should be especially interested in making good transactions in order to level up their reputation.
In order to protect transaction from frauds system has a cancellation option “once the funds are held in escrow, the buyer cannot cancel it but the seller can, and we employ a messaging system for buyers and sellers to work out their differences if need be. It’s an off-block chain escrow system too.”
Cryptoauction developers work hard to minimize all the risks made every attempt to keep as few bitcoins online as possible. He explained that they use cloud flare to avoid going offline during a DDoS. As the company is based in Ireland they work under Irish law. They also expect to work with the Bitcoin Foundation and DATA to develop the company on a cryptocurrency market.