The Creator of Cardano Wants to Use MLabs to Completely change the Crypto Auction Industry

Input Output Global (IOG), a Cardano development group, and MLabs have joined forces to build sophisticated crypto auctions utilizing the Hydra Head protocol.

The alliance seeks to establish a standard for conducting auctions of digital assets on Cardano’s blockchain platform using smart contract capabilities.

This cooperation aims to provide players in the Cardano ecosystem with a safe and efficient method for auctioning digital assets on-chain.

For scaling solutions on Cardano, the Hydra Head protocol consists of both smart contracts and software code that allow any number of parties to build up isomorphic state channels (called Hydra Heads) amongst themselves.

The new standard implementation will enable delegated voucher auction designs, enabling ecosystem users to hold their own crypto auctions on a private Hydra Head network using a range of use cases.

Companies propose to use single-head secret auctions, delegated custodial auctions, voucher auctions, or more complicated forms such as star-shaped or constellation schema auctions if the implementation is capable of delivering them.

Compared to a Layer 1 chain, executing operations across Hydra channels results in more efficient transactions and lower costs.

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