In Scarce City, a marketplace for fine Bitcoin-based goods, we just sold a work of art for 1 Bitcoin at our first Lightning auction.
Lightning Auctions is a unique online marketplace that secures bids for goods with minimal fees via the Lightning Network instantly and anonymously.
Participants pay a Lightning invoice with each bid, which is a small percentage of the bid amount. At the end of an auction, the highest bidder has 24 hours to pay the outstanding bid amount with a Bitcoin transaction in the chain. If they don’t, they lose their collateral and the next highest bidder has the chance to pay their highest bid. Once the item is paid for, the remaining attendees will get their collateral back through a Lightning payment.
We presented our Lightning Auctions with a breathtaking mosaic on the subject of Bitcoin, “Relentless Optimism” by Chiefmonkey and mosaic.rocks. The work consists of a phoenix flying with a physical bitcoin in its claws and is inspired by the cover from January 1988 The economist, an issue called “Get Ready for a World Currency.”
On three days, 19 participants submitted 53 bids, a total of almost 7 BTC. The end of the gut involved a bidding war that ended with a maximum bid of exactly 1 Bitcoin from a mysterious participant named “MIKEZ”.
There were a few moments when it looked like the auction was over and then a final second bid added to the auction countdown.
MIKEZ immediately paid the remaining amount of the bid and officially ended the auction. The resulting price of the artwork in US dollars was approximately $ 19,100.
The response from the Bitcoin creative community was amazing. It is clear that a robust Bitcoin-based auction platform has been sorely lacking.
Most importantly, the event has shown that there is strong demand for bitcoin-based creative works if users are offered a good experience for bidding on them.
While we’re thrilled with the initial success, there are many ways we can improve our market with other tools in the Bitcoin stack. We are very excited to expand our offering to include digital art with Bitcoin-based non-fungible tokens (NFTs).
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This is a guest post by Chris Tramount. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.