Blockchain-based E-commerce: It’s an Evolution, NOT a Revolution -- Experimental Evidence from Users’ Perspective

Kuo Chuen Lee, Yang Li, Weibiao Xu and Willy Zhao

MPRA Paper from University Library of Munich, Germany

Abstract: Proponents of blockchains believe that this technology will revolutionize e-commerce. To evaluate this belief, we invite several groups of students to transact on a decentralized peer-to-peer marketplace built on the platform provided by Origin Protocol Inc., and then we conduct a survey about their experience of usage. Based on our survey results, we find that 33% of respondents play tricks on others, which implies that this undesirable result may hinder the widespread adoption of blockchain technologies. We also attempt to propose a conceptual mechanism to mitigate fraudulent behaviors. In the event of disputation, a trusted authority is entitled to the right to downgrade the fraudulent side’s credit record, which is stored by a permissioned blockchain accessed only by the authority. Such a punishment can effectively decrease agents' incentives to sell counterfeits and leave fake ratings. In sum, we must distinguish what we proposed blockchains will do and what blockchains can do before enabling this technology in e-commerce.

Keywords: Arbitration; Blockchains; E-commerce; Fraud; Privacy; Trust (search for similar items in EconPapers)
JEL-codes: C7 C9 G02 L1 L4 O33 (search for similar items in EconPapers)
Date: 2025-01-05
New Economics Papers: this item is included in nep-exp, nep-ind and nep-pay
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