Never miss a story

Get subscribed to our newsletter


×
A Blockchain-based system that allows buyers and sellers to interact directly can make e-commerce platform for digital goods "cheat proof" and the products cheaper. Pixabay

A Blockchain-based system that allows buyers and sellers to interact directly can make e-commerce platform for digital goods “cheat proof” and the products cheaper, says a study by India-origin researchers.

Blockchains allow multiple stakeholders to transact money or data virtually over linked peer-to-peer computer networks.


Besides Blockchain, their proposed solution involves “smart contracts” and game theory.

“Our scheme offers potentially a big improvement over the state-of-the-art in electronic commerce because it allows buyers and sellers to interact directly with each other without the need for third-party mediators of any kind,” said Bhaskar Krishnamachari, Professor at Viterbi School of Engineering, University of Southern California, the US.


At present, the system works only with digital goods because physical products can’t have a cryptographic hash associated with them. Pixabay

“It uses a dual-deposit method, escrowing a safety deposit from both buyer and seller that is returned to them only when they behave honestly. And the verification of who is at fault and who is honest is done automatically by the smart contract,” added Krishnamachari.

This “smart contract” stores a good’s digital hash code or “digital fingerprint”.

Krishnamachari created an algorithm that runs on a programmable Blockchain as a “smart contract” with Aditya Asgaonkar, a recent undergraduate computer science alum at BITS Pilani

Here’s how the system might work:

An author wants to sell her digital book, but she hopes to avoid going through Amazon or some other company that takes a commission.

Also Read- Clash at UN with Russia, Syria over Syria Hospital Attacks

Instead, she uses Asgaonkar’s and Krishnamachari’s blockchain-based solution and lists the book’s price at $20. An interested buyer contacts her.

To ensure an honest deal, both the buyer and seller agree to pony up a $10 deposit through a programmable Blockchain platform.

The author then sends the digital book to the buyer, who could only access it by making a verifiable payment for the correct amount.

If the transaction satisfies everybody, then both parties receive their deposits back.


Blockchain-based system that allows buyers and sellers to interact directly can make e-commerce platform for digital goods “cheat proof”. Pixabay

But what if someone tries to cheat? What happens, for instance, if the seller intentionally sends the wrong e-book? What recourse does the aggrieved party have?

This is where the so-called smart contract kicks in.

The contract stores a good’s digital.

The buyer has access to that digital hash code before making a purchase. If they receive an item with a different hash code, however, they can dispute the transaction.

Also Read- Trump’s Plan to Fund Border Wall Construction Weighs by Court

In this instance, the seller would forfeit their deposit after the algorithm determined that they had attempted to cheat the buyer.

At present, the system works only with digital goods because physical products can’t have a cryptographic hash associated with them.

However, physical goods stored in a safe-box that can be opened with a digital password could be potentially transacted using their system.

Asgaonkar presented the researchers’ joint paper at the IEEE International Conference on Blockchain and Cryptocurrency in Seoul, South Korea. (IANS)


Popular

Photo by @shawnanggg on Unsplash

Aviation has revolutionised tourism and business forever, not to mention the cultural linkages that have been made possible.

“When once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return.” – Leonardo DaVinci

International Civil Aviation Day is observed on December 7th to recognize the flying industry’s impact on modern society. In 1994, as part of ICAO’s (International Civil Aviation Organization) 50th-anniversary celebrations, the first International Civil Aviation Day was observed, and in 1996, the United Nations General Assembly declared December 7th as International Civil Aviation Day.

Keep Reading Show less

Incomplete data entries and loopholes in the ledger are significant factors in slowing down the accounting process.

By- Harris Scott

Business owners hardly have time to look into all aspects of a business operation, and accounting is one aspect. While small business owners might invest some time handling accounting services, it is indeed a big waste for owners of major enterprises. Regardless of the size of the business, your organization needs someone to look after the ledger.

Keep Reading Show less
Pixabay

7th of December 1949, the Armed Force Flag Day

Since the 7th of December 1949, the Armed Forces Flag Day has been observed in India, annually. This one day is dedicated towards collection of funds from the citizens of India for the welfare of the ‘Indian Armed Forces personnel’. It has become a tradition to pay respect to the people who have served in the army, Navy and Airforce, on this day.

“The idea behind observing a Flag Day was to distribute small flags to the general population and in return collect donations.” The color-scheme of the flag is very similar to the ones used by fellow Commonwealth members like Cyprus, Kenya and Nigeria. The Flag Day signifies that it is the responsibility of the citizens of India to take care of the families and dependents of the armed forces personnel who fight for the country.

Keep reading... Show less