Smart Contract-Based E-Commerce System for Transparent and Auto Bmated Transactions Using Blockchain

Abstract

The migration of E-commerce applicationstoBlockchainoffersaresilientsolution to the vulnerabilities inherent in centralizedservers. By dispersing data across multiple nodes, Blockchain ensures continuous service availability, even in the event of server failure or cyber attacks. Moreover, its inherent encryption andimmutability features guarantee the security and integrity of customer and product data. Blockchain revolutionizes the E-commerce landscape by providing decentralized platforms that address critical challenges such as security, transparency, efficiency, and trust. This technology presents numerous opportunities for enhancing various aspectsofE-commerce,includingpaymentsystems, supply chain management, and the implementation of smart contracts for automated workflows. With its robust capabilities, Blockchain emerges as a pivotal development poised to transform the E- commerce industry, paving the way for enhanced security, transparency, and efficiency in online transactions.

Introduction

The rapid expansion of the e-commerce industry has introduced challenges, particularly concerning the security and reliability of online transactions due to centralized system vulnerabilities like crashes and cyberattacks. Blockchain technology offers a promising decentralized solution by providing a tamper-proof digital ledger that enhances transparency, security, and efficiency. Ethereum’s blockchain, with its smart contracts—self-executing agreements—enables secure, automated transaction processing without intermediaries.

A review of existing literature highlights blockchain’s potential to improve e-commerce in areas such as payment processing, supply chain management, and digital asset handling, while addressing challenges like scalability, interoperability, and regulatory compliance.

The proposed system architecture integrates suppliers, consumers, and blockchain technology, allowing secure product management, order processing, and real-time data synchronization. Key modules include signup/login, product addition and quantity updates for suppliers, and product browsing and ordering for consumers. Blockchain ensures data integrity using cryptographic techniques (SHA-256), storing encrypted user and transaction data across multiple nodes to prevent tampering.

Testing strategies such as unit, integration, and user interface testing are employed to ensure the system’s functionality, reliability, and user experience. Experimental results demonstrate the system’s interface and core functionalities, validating the approach.

Conclusion

Theadoptionofblockchaintechnologyine-commerce has the potential to reshape the industry, creating a more inclusive, efficient, and transparent ecosystem for merchants and consumers alike. By embracing innovationandcollaboration,stakeholders canunlockthefullpotentialofblockchainandusherinanewera of online commerce. The project successfully implements blockchain technology to significantly enhance security by preventing single points of failure and ensuring data integrity through immutable transactions. The adoption of blockchain\'s decentralized nature results in a highly reliable e-commerce system that remainsavailableeveninthefaceofservercrashesor security threats. User-friendly modules for product management, orders, and interactions streamline e-commerce operations, improving the overall efficiency of the platform. By integrating Blockchain[8] and IPFS for data storage and retrieval, the project lays the foundation for a secure and scalable e-commerce ecosystem that is well-prepared for future advancements in technology and security.

References

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Copyright

Copyright © 2025 Mahesh Chandra A, Malika P, Malleswari Neelam, Mallikarjun O, Chikkulapally Manaswini, Uppula Nagaiah . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.