What is Merkato?

Merkato is a software platform that supports a unique way to obtain bandwidth, on demand, at fair and optimal prices.

There are two ways to purchase bandwidth in a Merkato system.

• You can get a fixed amount of bandwidth, at a fixed price, for a fixed term
• You can create a bidding strategy and contend for bandwidth with other buyers at frequent intervals, establishing a fair market price based on supply and demand

The first method is called the Reservation market The Merkato market mechanism by which a specified quantity of bandwidth, for a specific duration, is sold for a firm price specified by the seller and agreed to by the buyer. This is an automated process based on a rate sheet that the seller establishes in advance.. The second method is called the Spot market The Merkato mechanism by which bandwidth is traded, in a progressive second price auction. An optimal fair market price is established and bandwidth is allocated to buyers, based on their bids relative to other buyers..

The spot market provides a true balanced supply-and-demand marketplace. The Merkato spot market uses the patent-pending Progressive Second Price Auction mechanism to collect bids from multiple buyers, analyze the bids to determine the natural market price for this bandwidth, and then automatically apportion that bandwidth to bidders at the market price.