The sequence of operations is as follows:

 

  1. The initiator determines a bid step which is a positive number.

 

  1. The auctioneer initializes and starts the auction.

 

  1. The auctioneer sets the auction’s valid bit constraint to the bid step indicated by the initiator.

 

  1. Once per auction the auctioneer may remove the valid bit constraint on bids by setting the bid step to zero.

 

  1. This change of bid step is announced to all users.

 

  1. It is mandatory that every bidder must register before participating in the auction. Only then will the bidder be informed of the actions or progress taking place.

 

  1. The auctioneer may close the bid at any arbitrary moment in time.

 

  1. The auctioneer informs the bidders all except the winner that they have lost the auction and the winner that it has won the auction.