Blockchain Technology in E-Commerce: Revolutionizing Payment Systems and Enhancing Transaction Security

Abstract

This research paper explores the transformative impact of blockchain technology on e-commerce, particularly in revolutionizing payment systems and enhancing transaction security. Through a detailed comparison with traditional systems, the study highlights blockchain's superior effectiveness in key security areas such as data integrity, fraud prevention, and access control, with blockchain achieving 100% effectiveness across these metrics. The decentralized and immutable nature of blockchain, alongside its use of advanced cryptographic methods, significantly enhances security and transparency in online transactions. Additionally, blockchain reduces transaction costs and processing times by eliminating intermediaries, making it highly efficient for cross-border payments. However, the study also acknowledges the challenges of scalability, energy consumption, and regulatory uncertainties that currently hinder widespread adoption. The visual analysis using donut charts provides a clear, comparative view of how blockchain outperforms traditional systems, especially in transparency, where full traceability is a significant advantage. Overall, the paper concludes that despite existing challenges, blockchain technology is poised to play a critical role in the future of e-commerce, offering a more secure, efficient, and transparent environment for online transactions as the technology continues to evolve and regulatory frameworks become more accommodating.