Inspiration: The inspiration for this project started when we were using eBay to buy something. We realized that currently, there are shortcomings in how public auction bidding is done. After doing some more research, we found that there are clear problems in public auction bidding, including sniping and shilling. We then used Midnight to create the solution of having private auction bidding through the use of blockchains.
What it does: Our solution prioritizes privacy-first sealed-bid auctions on Midnight blockchain. To regulate frontrunning, shilling, sniping, and more, bids stay encrypted until close. Zero-knowledge proofs are used as well to create smart contracts. This makes our solution fair and transparent in contrast to contemporary public auction bidding methods. The Midnight platform supports our solution because it uses Zero-knowledge proofs.
How we built it: We built the project using Midnight smart contracts with Compact and zero-knowledge proofs for privacy and verification. We used React and Vite for the frontend, Supabase for backend storage and authentication, and integrated wallet support for blockchain interaction. We also used automated testing and local Midnight environments to validate the complete auction lifecycle.
Challenges we ran into: One challenge was working with Midnight’s ecosystem, which required configuring proof systems, contracts, wallets, and local environments together. Another challenge was balancing privacy between on-chain and off-chain components while keeping the user experience simple and intuitive.
Accomplishments that we're proud of: We successfully built a complete sealed-bid auction flow with privacy at its core. We created working smart contracts, integrated zero-knowledge proofs, developed a full web interface for organizers and bidders, and tested the system through end-to-end auction scenarios.
What we learned: We learned that privacy on blockchain is more complex than simply hiding data. Privacy requires careful design across smart contracts, databases, wallets, and user interfaces. We also learned how Midnight’s zero-knowledge features can enable entirely new applications that are difficult to build on traditional blockchains.
What's next for Midnight Auction
Next, we would like to plan to improve the system with fully private commitment-based bids, perform security audits, deploy to mainnet, and expand into enterprise and real-world auction use cases.
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