Blockchain-based E-commerce for the COVID-19 economic crisis
Elnaz Rabieinejad, Abbas Yazdinejad, Tahereh Hasani, Mohammad Ali A. Hammoudeh · The 5th International Conference on Future Networks & Distributed Systems · 2021
The beginning of 2020 is associated with the emergence and spread of the COVID-19 disease. The characteristics of this virus, such as high transmission power and lack of definitive treatment have caused problems in all aspects of organizational economics. Restrictions that were imposed to deal with the virus affected the global economy. Fear of being exposed to the virus, quarantine and lockdown led to a massive increase in online shopping. However, people’s concern about the health and authenticity of the products offered online and their incompatibility with consumer standards raised concerns about the reliability of the existing e-commerce models. Fraud, counterfeit products, ethical sourcing and product safety are some of the concerns that affected online business acceptance. To address these challenges, we examine the use of a blockchain-based e-commerce approach to guarantee authenticity through blockchains trace and trace capabilities. In this approach, we evaluate the profit gains achieved through addressing consumer concerns on safety and authenticity. To examine these benefits, we use a game theory leader-follower approach. We evaluate the profitability of e-commerce in three scenarios, including when non of seller and e-commerce website use blockchain, only when the seller uses the blockchain and when both the seller and the e-commerce websites use blockchain. The evaluation results show that the situation in which both the seller and the website use blockchain has the highest profitability for the seller due to the maximum reduction of customer concerns.