Eliminating Intermediaries in E-Commerce: A Decentralized Marketplace Prototype using Ethereum Virtual Machine and Interplanetary File System
Authors: Ahiara, W., Ezeh, C. And Ofoji, C.
DOI Info: http://doi.org/10.5281/zenodo.8094972
ABSTRACT
Electronic commerce (e-commerce) has revolutionized the way businesses operate worldwide. This technology has enabled online trading and economic services across various industries. Third-party marketplaces, known for their trusted intermediation and secure online transaction services to anonymous internet traders, are among the drivers of e-commerce. These centralized corporations charge a fee for their services, but online trading is not immune to various crimes such as identity theft, non-payment, delayed service delivery, and other attendant risks. To mitigate these problems, this research proposes a prototype system that utilizes blockchain technology to achieve decentralization in internet trade. The system's proof-of-concept utilizes the Ethereum Virtual Machine (EVM) and Interplanetary File System (IPFS). The proposed system can work with EVM-compatible blockchains such as Tron, the Binance Smart Chain, Matic network, Tomo chain, and Rootstock (RSK) network. The study demonstrates the potential of blockchain technology in e-commerce by providing a decentralized marketplace that is free from centralized control. By removing intermediaries, the proposed system eliminates the need for trust in third-party marketplaces, which in turn reduces transaction costs, and ensures transparency and accountability. The findings of this research highlight the practicality of using blockchain technology in e-commerce, and how it can significantly reduce transaction costs, improve security, and promote decentralization.
Affiliations: Department of Computer Engineering, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria.
Keywords: Blockchain, Ethereum Virtual Machine, Interplanetary File System, Decentralized Marketplace, E-commerce
Published date: 2023/06/30
