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, establishing a fair market price based on supply and demand.

The first method is called the Reservation market. The second method is called the Spot market.

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 offered bandwidth, and then automatically apportion that bandwidth to bidders at the market price. The components of the Merkato system are illustrated below.