Design and Analysis of Blockchain-Based Resale Marketplace

Abstract

Resale and exchange of items carry high risk and uncertainty. Fraudulent sellers and misleading item listings cause huge losses to consumers of digital resale marketplaces. Blockchain technology and smart contracts can help minimize the risk and uncertainty associated with resale marketplaces. The decentralized network of blockchain establishes trust by acting as a neutral third party. And the smart contracts guarantee that both parties will uphold the terms of sale. In this work, we propose the design of a blockchain-based decentralized and trustworthy marketplace. This design focuses on minimizing risk and uncertainty by using smart contracts, micro-escrows, and smart lock secured point-of-exchange. Additionally, zero-knowledge proofs are employed in the design enabling sellers to disclose the partial location of the point-of-exchange (PoE) while protecting their privacy.