BLOCKARC: A BLOCKCHAIN BASED SMART CONTRACT FOR REWARD SYSTEM IN E-COMMERCE

Abstract

The increasing reliance on e-commerce platforms has amplified challenges related to transparency, trust, fraud, and inefficiencies in reward distribution systems. Existing centralized architectures fail to address these issues effectively. This paper proposes BlockArc, a blockchain-based smart contract framework designed to revolutionize reward systems in e-commerce. The system leverages a permissioned blockchain and smart contracts to automate reward distribution, enhance security, and ensure transaction transparency. The framework consists of four layers: Blockchain Layer, Smart Contract Layer, Application Layer, and User Roles, each addressing key challenges such as reward fragmentation, fraudulent transactions, and inefficient refund processes. Smart contracts autonomously handle reward issuance, redemption, and expiration while integrating oracles for real-world data validation. Security is reinforced using cryptographic hashing, Zero-Knowledge Proofs (ZKPs), and Role-Based Access Control (RBAC) to prevent fraudulent activities. A performance evaluation demonstrated 112 transactions per second (TPS) under moderate load, fraud detection accuracy of 100%, and a 37% reduction in operational costs by eliminating intermediaries. User satisfaction surveys indicated high levels of trust and transparency. The study concludes that BlockArc enhances e-commerce reward systems by improving efficiency, security, and decentralization, paving the way for scalable and interoperable blockchain applications in digital commerce.