GRD Journals- Global Research and Development Journal for Engineering | Volume 4 | Issue 7 | June 2019 ISSN: 2455-5703
Influence of Crypto Currency in E-commerce V. Neethidevan Department of MCA Mepco Schlenk Engineering College, Sivakasi
Abstract Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions. The types of E-commerce includes – business-tobusiness (B2B), business-to-consumer (B2C) or business-to-government (B2G). E-commerce with the help of latest trends can improve communication and doing E-Commerce business is more easier. With more digital innovations in finance, public people were showing more interest in this form of business. In addition to that, financial sector stakeholders and academic are also more attracted by this. The main objective of Cryptocurrencies is to replace centralized systems such as banks, eliminating the need for an intermediary and by this greatly simplify the shopping process. With Ecommerce there is a possibility to reach more people across the globe at less expense than the traditional business. With the introduction of new concept like crytpcurrency, Bitcoin is a highly secured digital currency, used by more people. It simply allows its users to move value around the World Wide Web. Market volatility is the key issue with cryptocurrency payments. Price fluctuations in the value of a cryptocurrency which is being used for payment can lead to net losses (or conversely, net gains) for e-commerce merchants. With so many factors affecting the implementation of cryptocurrency-based payments, it’s essential to be able to fail fast while innovating or testing the waters. To accommodate for risks and volatility, consider incremental additions such as rolling out crypto payments support on a web app before making them available via native app capabilities or vice versa. Keywords- Block Chaining, Cryptocurrency, Mining, Bitcoins, Cryptocurrency, Security Threats, E-commerce, User Privacy
I. INTRODUCTION A. E-commerce The term Electronic commerce (or e-Commerce) refers to the effective use of an electronic medium to do commercial transactions. Also, it refers to the sale and the purchase of products via Internet. , but the term E-Commerce also covers purchasing mechanisms via Internet (for B-To-B). B. Importance of Crypto Currency Since Internet is an unsecure one, whenever people are in online purchase, there is a need for more efficient security mechanism that is provided by Cryptography. Since it have systematic polices there a great demand from online users for payment purpose. Also it provides reassurance and feel of safety. Another reason why cryptocurrencies have become extremely in demand is because of their policies. No need to depend upon third party and the user can do payment for all kinds of on line transactions from anywhere without any hesitation. C. Different Forms of Crypto Currency 1) Litecoin (LTC) Litecoin, uses the scrypt algorithm that incorporates the SHA-256 algorithm. Its favors large amounts of high-speed RAM, rather than raw processing power alone. 2) Ethereum (ETH) Ethereum is an open software platform based on blockchain technology that allows developers to build and deploy decentralized applications Also it is used to build Decentralized Autonomous Organizations (DAO). A DAO is fully autonomous, decentralized organization with no single leader. DAO’s are run by programming code, on a collection of smart contracts written on the Ethereum blockchain. 3) Zcash (ZEC) Zcash, a decentralized and open-source cryptocurrency, to provide extra security, in which all transactions are recorded and published on a blockchain, but other details such as the sender, recipient, and amount remain private. Zcash encrypts the contents of shielded transactions. Since the payment information is encrypted, the protocol uses a novel cryptographic method to verify their validity.
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Influence of Crypto Currency in E-commerce (GRDJE/ Volume 4 / Issue 7 / 008)
4) Dash (DASH) It is built upon Bitcoin’s core code with the more advanced features like privacy and quick transactions. It is an open-source and has blockchain, wallet infrastructure, and community. Its transaction fee is negligible. 5) Ripple (XRP) The payment providers exhibits more interest in using this. It is built for enterprise and individuals. The main objective is to move lots of money around the world as rapidly as possible. It is stable and more than 35 million transactions processed without issue. It has ability to handle more than 1500 transactions per second. 6) Monero (XMR) Monero is a secure, private currency system, that uses cryptography to ensure that all of its transactions unlinkable and untraceable. Now a days it is more desirable.
II. LITERATURE SURVEY David Kbilashvilietall discussed about various aspects of Crypto-currency as the payment system. Many more technology is coming up and each one has pros and cons. In the last decade more than 550 cryptocurrencies developed so far and only fow of them were successful [1]. In the paper [2], the main objective of the author MirelaRedžović was to bring both positive and negative effects of Bitcoin on e-commerce. Also the paper talked about the development of electronic commerce in the last two decades, from the author’s perspective, Bitcon will not reach a greater global expansion in the financial market. In the paper [3], author investigated the user’s anticipations from crypto currency in the near future. Further, it explored the user’s confidence in using crypto currency. .Mover over, the paper is aimed to measure the extent to which crypto currency is used. Also it analysed how 21 different countries have responded with respect to regulations & legislations concerned with crypto currencies. The author Himani Grewal in [4] explored the various issues with respect to the usage of various cryptocurrency in ECommerce business, from the e-business point of view, there is a need for different perspectives. Also the paper made an observation regarding ethics needs to be followed and its corresponding development and implementation of policies to the same. The fast growth of E-Commere business and the awareness for the different users across the globe provided many more opportunities for economic efficiency. Since Internet is a public network, it provides more advantages to the users of E-Commerce business. In addition to that Internet offers unethical behavior. Due tp the enormous growth of e-commerce oriented business, it is expected that ethical issues also continue to increase. In [5], the author Hui Lie et all , proposed a six-layers reference model for E-Commerce that includes infrastructures, science techniques, elementary services, business strategies, business modes and society environment layer. The machinereadable specification for each layer helps to exchange concepts and implement them effectively by people involved in ECommerce business. The author David G. Messerschmitt, et all in [6], clarified the various opportunities to apply e-commerce technologies to networking. It includes the assembly, pricing and payments for corresponding infrastructure resources and various information access. E-commerce could all sorts of help and synchronization of these elements. The author VinithaStephie. V et all in [7], the main focus is about the design of Web portal for the trading and welfare for pets. A “usability subculture” has evolved as a result of emerging web technologies. The user centered design will become more important in an increasingly competitive market. Because of this application the users can make an ease approach into Veterinary Science, clubs, buying and selling of pets and its accessories. A user can also enroll themselves as a community member and have a full access towards its responsibilities. Thus this web application enables users more enlightened and one to get their loved ones & their necessities at one spot.
III. PROS AND CONS OF CRYPTOCURRENCY Since no third party is involved, also there is no chance for central authority to manipulate or seize the currency. In the case of cryptocurrency such as bitcoins the central authority can’t take your cryptocurrency, because it does not print it, own it, and control it correspondingly. – Anonymity and Transparency: If the Bitcoin users don’t publicize their wallet addresses publicly, it is really difficult to trace transactions belong to them. However, even if the wallet addresses known to public, generation of new wallet address can be done easily. Thus increased privacy is achieved easily comparing to traditional payment system. – No Taxes and Lower Transaction Fees: With the decentralized nature and user anonymity, there is no tax system for bitcoins. Earlier, Bitcoin provided instant transactions at nearly no cost. Even now, Bitcoin has lower transaction costs than a credit card, Paypal, and bank transfers and that to allow for large value international of transactions. – Theft resistance: Stealing of bitcoins is not possible and it provides security by design. Moreover, bitcoins are free from Charge-backs, i.e., once bitcoins are sent, the transaction cannot be reversed.
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Influence of Crypto Currency in E-commerce (GRDJE/ Volume 4 / Issue 7 / 008)
A. Challenges – High energy consumption: Bitcoin’s blockchain uses PoW model to achieve distributed consensus in the network. In general, processing time needs more energy than using a Visa credit card, so there is a need for innovative technologies to reduce this energy consumption. Likewise, due to the heavy load in network, each transaction consume more energy and, transaction processing time is also increasing. – Wallets can be lost: When the user lost private key due to various problems like a hard drive crash or a virus corrupts data or lost the device carrying the key, all the bitcoins in the wallet has been considered lost for forever. It’s can bankrupt a wealthy Bitcoin investor within seconds. – (Facilitate) Criminal activity: The secrecy provided by the Bitcoin system helps the Would-be cyber criminals to perform various illicit activities such as ransomware, tax evasion, underground market, and money laundering. How can Block chain be used in Ecommerce? It allows for faster and cheaper executions of transactions in E-Commerce. For online payment in E-Commerce business, there are many online payment methods, come with high transaction fees and limited payment options. But in case of using blockchain technologies for payments, there is no need for financial intermediaries. These transactions provide direct access to all details and documentation. Normally consumers spend time in requesting this information from intermediaries. Also blockchain-based payments don’t require customer sensitive information to thirdparties. Transactions via blockchain occur directly between customers and merchants, this benefits customers, who usually carry the extra costs, and sellers, who can offer products at a more competitive, lower price. The only fees necessary are for the network behind the blockchain, which validates transactions and secures the network. As of now, these fees are markedly smaller than those charged by other digital payment providers.
IV. CONCLUSION With more advancement happened in Internet, Internet applications and mobile applications with crypto currency played a major role in E-Commerce Business. This paper explored various advancements, the role and impact of Cryptocurrecny in E-Commerce. Since the Government made major regulations and systematic implementations of policies, use of digital currency in E-Commerce business is a major success. With block chain concept implemented in Bitcoin is to allow transactions to be chained to one another. Now more secured transactions are possible in Internet with cryptocurrency.
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David kbilashvili, influence of e-commerce and cryptocurrency on purchasing behavior of wine customers, lobal journal of Management and business research: emarketing volume 18 issue 3 version 1.0 year 2018 . [2] Mirelaredžović, jelenanovaković, the impact of virtual money on e-commerce, international scientific conference on ict and e-business related research, 2016. [3] Shailak Jani, TheGrowthof Cryptocurrency in India: Its Challenges& Potential Impacts on Legislation, Research gate publication, april 2018. [4] Himani Grewal, A Study of Ethical and Social Issues in E-Commerce, International Journal of Advanced Research in Computer Science and Software Engineering, Volume 2, Issue 7, July 2012. [5] HUI LIU, Xi’an Jiaotong University, a Reference Model for E-Commerce, [6] David G. Messerschmitt, Opportunities for E-commerce in Networking, EEE Communications Magazine, Sept. 1999. . [7] Vinithastephie. V and m. Lakshmi, design and implementation of e-commerce web application, arpn journal of engineering and applied sciences, auguest, 2017. [8] https://ccm.net/contents/207-introduction -to-e-commerce-electronic-commerce [9] https://www.investopedia.com/tech/ most-important-cryptocurrencies-other-than-bitcoin/ [10] https://www.investopedia.com/tech/ most-important-cryptocurrencies-other-than-bitcoin/ [11] Mauro Conti, Senior Member, IEEE, A Survey on Security and Privacy Issues of Bitcoin.
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