Is an open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements
Digital currency exchange Gemini is to begin hosting daily Ether auctions starting on Friday, July 28th. In prospect the auctions are to be held each business day at 4:00 pm ET.
As Gemini team claims on its blog, such daily auctions increase price discovery and transparency, and they reduce costs across the board by making sure that buyers and sellers don’t miss each other during the trading day. In addition, the auction is to bring its participants the benefits of over-the-counter (OTC) trading without the overhead, hassle, and lack of transparency.
Distributed database that is used to maintain a continuously growing list of records, called blocks
According to the Gemini team, the actions work pretty simple. Thus, all eligible orders are filled at the final auction price. The final auction price of each Auction is determined by finding the price at which the greatest aggregate buy demand and aggregate sell demand from all participating orders can be filled (i.e., the price at which the largest quantity can trade). The mechanics of this auction are very similar to the closing auction (or “closing cross”) on the major electronic U.S. stock exchanges (e.g., Nasdaq, NYSE Arca, Bats).
This provides an opportunity for both buyers and sellers to trade in an instant of elevated liquidity and price discovery.
As Gemini details, indicative auction prices will be broadcasted through its market data API and website 10 minutes before the auction time, during which it will be updated every minute until the final 60 seconds, with the price refreshing every 15 seconds after that point.