👉 Auction-based computing, also known as blockchain or smart contract auctions, is a decentralized method of allocating resources or computing power where participants bid for the opportunity to use these resources through transparent, automated processes. In this system, resources such as computing power or bandwidth are listed on a blockchain, and participants submit bids that are automatically executed based on predefined rules. The highest bidder wins the resource, and the transaction is recorded on the blockchain, ensuring transparency and security. This method eliminates the need for intermediaries, reduces costs, and increases efficiency by enabling a peer-to-peer marketplace where resources are allocated based on demand and supply, often used in cloud computing, data processing, and other computational tasks.
