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

Lee, Kuo Chuen and Li, Yang and Xu, Weibiao and Zhao, Willy (2025): Blockchain-based E-commerce: It’s an Evolution, NOT a Revolution -- Experimental Evidence from Users’ Perspective.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Arbitration, Blockchains, E-commerce, Fraud, Privacy, Trust
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; C - Mathematical and Quantitative Methods > C9 - Design of Experiments; G - Financial Economics > G0 - General > G02 - Behavioral Finance: Underlying Principles; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance; L - Industrial Organization > L4 - Antitrust Issues and Policies; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

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