The main contest follows two bidding sides – Whales and Shrimps. The Whales are defined as high stake bidders who are capable of bidding large amounts on the painting. They will have a minimum bid required, in order to prevent low ball openings, as that would classify them as a Shrimp.
A Whale bids alone:
If a Whale wishes to place a bid, the bid must be higher than the previous one in order to outbid the previous Whale and become the new highest bidder. The outbid Whale automatically has their bid returned.
Shrimps bid together:
All placed bids remain and are accumulated into a “pool”, which competes with the Whale’s bid.
A single Shrimp will have a minimum bid limitation. The number of Shrimps is unlimited. Their goal is to outbid the Whale and secure the painting’s ownership into their hands.
Do you want to bid for your favorite piece of art, but don’t know how? Well don’t worry, we are here to help! Simply follow the steps below and you can enjoy bidding in no time.
Press the button “Place BID”. You can find this button either at the top of the landing page, or in the navigation bar.
After clicking the button, you should find yourself looking at the piece of art that is prepared for bidding. Now you have to decide whether you would like to be a Whale or a Shrimp. If you have decided that you can be a Whale, press the “Whales” button, or should you decide to be a Shrimp, press the “Shrimps” button.
In order to be able to bid for the desired art piece, you must be connected to a MetaMask wallet. If you don’t have a wallet, or you’ve never heard of it, don’t worry we’ve got you covered. See a complete guide to using MetaMask wallets. If you already have a wallet, or you have come back after setting up your wallet (welcome back!), you should receive a pop up asking you to log in, or to switch the network.
After your wallet confirmation you will be able to access the bidding page (by pressing the “Whales” or the “Shrimps” buttons). Here you should place your bid and confirm it.
Congratulations, you’ve done it! As the quintessential Jewish artist of the twentieth century Marc Chagall once said, “In the arts, as in life, everything is possible, provided it is based on love”, so go along and enjoy the experience of bidding, because you made it possible with your love for art.
There is NO minimum value for the painting, as there is NO reserved price for the auction.
During the last 15 minutes of the auction a countdown will begin. This time is dedicated to outbid the current highest bid. If the current highest bid is outbid then a fresh 15 minutes countdown will start. This cycle will continue until no one is able to outbid the current highest bid and the painting goes to the highest bidder. The Owner(s) - Whale or Shrimps - is decided upon the auction’s end.
If a Whale owns NFT, they can claim the whole painting, and it becomes their possession. The corresponding digital NFT certificate is also assigned to them and is not divided into parts (or ‘shares’).
If Shrimps pool becomes highest bidder, the painting will remain in the gallery, but will become co-owned. An NFT for the painting will be split into multiple parts, corresponding to the
Shrimp bids and assigned to their wallet addresses. For example, one Shrimp places 10 ETH worth of bids, another 2.5 ETH and a third one 1 ETH. The total NFT shares
will be equal to 135, and Shrimp one will have 100 shares for it, Shrimp two, 25, and Shrimp three, 10.
If the Shrimps decide to unite and give their shares to one person, so that it reaches 75% of the entire bid, that Shrimp can claim the painting and take it home.
Methods to be implemented to uphold the security of the project:
No contract owners can meddle in or interact with the auction.
Only limited functions can be interacted with during the auction period, and others only after it has been concluded.
The ownership of smart contract rights cannot be transferred to the highest bidding Whale. This is to prevent any shady activity.
Some functions are only accessible to other contracts and can't otherwise be accessed.
Bid placement and other calculus is checked for safe math activities, so no overflow of data can occur.
There is no backend, and user data will not be stored.
Keeping in mind that the structure will be based on official Ethereum blockchain smart contracts technologies, which are decentralized and have better defense against malicious activity, it is clear that the security will be strong and reliable.
All transactions are signed using a private key, making it impossible for hackers to decode. The transactions can be validated on the Ethereum main network, and then finalized by the nodes as a completion of a transaction or payment.
A major benefit of the auction is that it provides anonymity, no first or last names will be required. Every transaction will simply use wallets and a smart contract to communicate, thus, preventing personal data leaks.
The Whale will prove their identity by simply interacting with the contract as proof of their ownership, after the auction ends.
Information regarding the end of the auction and the highest bidders wallet address will be shared in a newsletter, or by email if the bidder shares their email voluntarily to our mailinglist.
Whales will have the funds which were placed in the auction returned in two cases:
01. When they are outbid by another Whale;
02. When the auction ends and they lose to the Shrimps;
Shrimp will have their funds returned in one case:
01. When the auction ends and they lose to the Whale.
All smart contracts run on the Ethereum blockchain, therefore making it public and not changeable. Anyone can view them and verify their integrity for themselves if need be.
The contract itself can be categorized as an agreement between two people, one of which is a computer code that fulfills called functions and interacts with other contracts on the chain.
Active transactions are processed on the blockchain, and only occur if the function’s criteria has been met (e.g. if the restrictions and access modifiers in the functions of the contracts require so and are redefined).
Each contract has different purposes, some are used for securing other contract functions, some for currency exchanges, others for auctions, and so on. The possibilities are endless.
To put it in simpler terms, a smart contract is an agreement, which has points that define it. Any part of the contract can be interacted with if the point requirements are met. The contract is placed on the blockchain, which can be interpreted as an attorney that keeps the contract safe and unmodifiable, so the owner and others can interact with it.
As you may already know, NFTs are a digitized version of a physical collector’s item. For example, if one wishes to own a classical painting that resides in a museum,
but that is impossible due to the various museum constrictions, and numerous other obstacles, a workaround would be to digitalize part the piece and sell it on the web.
A safer, and more valid, way to do so is to use the blockchain to provide integrity and security to the transactions, thus making said painting available for purchase.
One could then buy the digitalized version and become its owner, with all digital rights to it, though the digital rights should not be confused with physical ones.
The whole endeavor includes the use of NFT, which is a non-fungible token, which is essentially the rights to the digital piece. The NFT may have one or multiple owners, depending on contract executions and varied agreements in a contracts such as an ERC1155.
NFTs are usually located on the Ethereum blockchain. This is similar to Bitcoin, which most of us are now familiar with, which has its own blockchain. The chain creates an irrefutable ledger of NFT transactions and transfers between owners. The creator of the NFT retains the copyright for it, as well as the right to duplicate it as many times as they want. The creator may produce multiple copies of the original, and if the buyer of the NFT wants to make copies, they must obtain permission from the creator, and each of these would be considered unique NFTs. In a similar vein to physical collectibles, replications will not be as valuable as the original, meaning that supply and demand will impact how muc the NFT is worth.
In the case of Tselkov’s painting, the auction will not only sell and provide the NFT rights, but will auction the physical painting itself too.
SUPER HOW? is a research and development company that develops projects using emerging technologies. They specialize in working with Blockchain and Distributed Ledger Technologies (DLT), and got started in the field in 2014. They thus have deep knowledge and experience when it comes to developing blockchain (as well as the distributed ledger) solutions and applications such as wallets, smart contracts, oracles, interfaces, etc., in addition to consulting for clients on business models and regulatory compliance using the Blockchain and Crypto technologies. They are focused on a holistic approach to blockchain development solutions, supporting the needs of the client. They have knowledge and experience in different technology platforms such as Hyperledger Fabric, Ethereum Enterprise, NEM Symbol, Terra, Stellar and Solana which gives them flexibility and assurance in choosing the best stack of technology and experience to meet the specific needs of a given client.