China-based Financial Exchange Introduces Safer Online Auction Solutions
The CQFAE, an exchange in Chongqing, has recently been paying extra attention to online auctions and has been using blockchain to develop new solutions regarding its security. As part of a patent submitted last year and published by the CSIPO, the company is currently researching and developing a solution to permit more than one party at a time to bid on monetary assets on the same network.
The patent submitted in 2017 explains the new network under development and how it would operate through nodes that are distinct from any bidding individual or company. Validator nodes, as they’re called, verify and validate all data handed in by a company that bids on the platform. A renewed price is then calculated on several factors and then announced prior to the next stage of an auction.
The CQFAE has stressed the importance of its project due to the current system and its exposure to any illegal changes in data by anyone, even auction managers. As the application explained, a centralized exchange could potentially turn the balance of any bids, rendering them unjust and much less transparent as only auction managers can review the process. This takes away any insurance that an auction is fully legitimate and untampered with.
After authentication and authorization were granted, the CQFAE was founded in 2011 under compliance and permission of Chongqing’s municipality. It was launched as a means of acting as a medium between new and small businesses in need of funding and investors, as well as lenders and traditional financial institutes. Although no official announcement has been made regarding a product by the company based on BC technology and the patent, it was submitted only one month later after the city officials announced plans for a blockchain digital trading platform.
Reactions to the news spread quickly as many wondered if the new exchange would be state supported. Later, an official spokesman stated that the new exchange will mostly conduct exchanges involving loans and credit letters.