A Review of Blockchain’s Role in E-Commerce Transactions: Open Challenges, and Future Research Directions

Abstract

The Internet’s expansion has changed how the services accessed and businesses operate. Blockchain is an innovative technology that emerged after the rise of the Internet. In addition, it maintains transactions on encrypted databases that are distributed among many computer networks, much like digital ledgers for online transactions. This technology has the potential to establish a decentralized marketplace for Internet retailers. Sensitive information, like customer data and financial statements, should be routinely transferred via e-commerce. As a result, the system becomes a prime target for cybercriminals seeking illegal access to data. As e-commerce increases, so does the frequency of hacker attacks that raise concerns about the safety of e-commerce platforms’ databases. Owing to the sensitivity of customer data, employee records, and customer records, organizations must ensure their protection. A data breach not only affects an enterprise’s financial performance but also erodes clients’ confidence in the platform. Currently, e-commerce businesses face numerous challenges, including the security of the e-commerce system, transparency and trust in its effectiveness. A solution to these issues is the application of blockchain technology in the e-commerce industry. Blockchain technology simplifies fraud detection and investigation by recording transactions and accompanying data. Blockchain technology enables transaction tracking by creating a detailed record of all the related data, which can assist in identifying and preventing fraud in the future. Using blockchain cryptocurrency will record the sender’s address, recipient’s address, amount transferred, and timestamp, which creates an immutable and transparent ledger of all transaction data.