Blockchain-based system and method for peer-to-peer online advertising auction

A computer implemented method for a uniform price auction of online advertising on a peer-to-peer computer network which determines an ad price to be paid to a consumer for watching an ad based on encrypted bid prices, the method comprising:

• deploying an auction smart contract to publish a need from a consumer;
• receiving ad bids for an ad by the smart contract, from a plurality of advertisers;
• storing the received ad bids in a hash function mapped to the advertiser's address, wherein the stored ad bid includes a hash of a content of the ad encrypted with the consumer's public key, a hashed encrypted binary representation of a bid price, a public key of the advertiser, and a hashed verification code, wherein the bid price is a maximum amount the advertiser is willing to pay the consumer for viewing the content of the ad;
• receiving an advance payment equal to a predetermined maximum ad price to guarantee payment, when the consumer has viewed the ad;
• setting the ad price to a predetermined default value when the number of ad bids received is below a predetermined number;
• when the number of ad bids received is not below a predetermined number, reducing the number of ads that can be displayed by the consumer by increasing the ad price and eliminating ads with bid prices lower than the ad price and iteratively varying the ad price until the number of ads with bid prices higher than the ad price is between a predetermined minimum and maximum via a secure multiparty protocol between an auction oracle and advertiser oracles using a secure communication channel smart contract;
• detecting inconsistent behavior of advertiser oracles during the secure multiparty protocol and disqualifying dishonest advertisers;
• transmitting the ad price as the payment to the consumer via the peer-to-peer computer network, when the hashed verification code is received from the consumer verifying that the consumer has viewed the content of the ad within an ad-viewing period of time;
• transmitting a difference between the advance payment and the ad price to an advertiser whose ad was viewed, by the auction smart contract via the peer-to-peer computer network;
• transmitting the advance payment to advertisers whose ad was not viewed, by the auction smart contract via the peer-to-peer computer network;
• transmitting the advance payment of disqualified advertisers to the consumer by the auction smart contract via the peer-to-peer computer network;
• and
• ending the uniform price auction of online advertising.