Smart contracts for fairness and efficiency

Smart contracts are central to how AI Auctions operates. These are self-executing programs written directly onto the blockchain, designed to enforce auction rules without the need for intermediaries or manual oversight.

When a bid reaches the reserve price or when the auction timer ends, the smart contract automatically determines the winning participant. It then manages the full settlement process by transferring ownership of the asset and releasing the payment to the seller.

In some cases, the contract can be configured to withhold funds temporarily until the buyer confirms that the asset has been received and meets the agreed-upon conditions. This added safeguard ensures that sellers fulfill their obligations before being paid.

By automating the core functions of each auction, the platform offers several advantages:

• Faster settlement with no administrative delays

• Fewer opportunities for disputes or miscommunication

• Elimination of the need for third-party involvement in closing transactions