Blockchain-Based Distributed Marketplace

  • Oliver R. Kabi
  • Virginia N. L. FranqueiraEmail author
Conference paper
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 339)


Developments in Blockchain technology have enabled the creation of smart contracts; i.e., self-executing code that is stored and executed on the Blockchain. This has led to the creation of distributed, decentralised applications, along with frameworks for developing and deploying them easily. This paper describes a proof-of-concept system that implements a distributed online marketplace using the Ethereum framework, where buyers and sellers can engage in e-commerce transactions without the need of a large central entity coordinating the process. The performance of the system was measured in terms of cost of use through the concept of ‘gas usage’. It was determined that such costs are significantly less than that of Amazon and eBay for high volume users. The findings generally support the ability to use Ethereum to create a distributed on-chain market, however, there are still areas that require further research and development.


Blockchain Smart contract Ethereum E-commerce Distributed systems 


  1. 1.
    ETH Gas Station. Accessed 01 May 2018
  2. 2.
    How much does it cost to sell on eBay? Accessed 01 May 2018
  3. 3.
    Sell on Amazon - Pricing and Fees. Accessed 01 May 2018
  4. 4.
  5. 5.
    Ethersphere/swarm, December 2017.
  6. 6.
    Benet, J.: IPFS-content addressed, versioned, P2P file system. arXiv preprint arXiv:1407.3561 (2014)
  7. 7.
    Berghel, H.: Equifax and the latest round of identity theft roulette. Computer 50(12), 72–76 (2017)CrossRefGoogle Scholar
  8. 8.
    Buterin, V.: A next-generation smart contract and decentralized application platform (2013). Accessed 02 May 2018. Document constantly updated by different people
  9. 9.
    Buterin, V.: Bootstrapping a decentralized autonomous corporation: part I. Bitcoin Mag. (2013).
  10. 10.
    Buterin, V., Griffith, V.: Casper the friendly finality gadget. arXiv preprint arXiv:1710.09437 (2017)
  11. 11.
    Colangelo, G., Maggiolino, M.: Data Accumulation and the Privacy-Antitrust Interface: Insights from the Facebook Case for the EU and the US (2018), Working Paper No. 31/2018.
  12. 12.
    Dennis, R., Owen, G.: Rep on the block: a next generation reputation system based on the blockchain. In: Proceedings of the 10th International Conference for Internet Technology and Secured Transactions (ICITST), pp. 131–138. IEEE (2015)Google Scholar
  13. 13.
    Eskandari, S., Clark, J., Sundaresan, V., Adham, M.: On the feasibility of decentralized derivatives markets. In: Brenner, M., et al. (eds.) FC 2017. LNCS, vol. 10323, pp. 553–567. Springer, Cham (2017). Scholar
  14. 14.
    FBI: 2016 internet crime report (2016). Accessed 02 May 2018
  15. 15.
    Goldfeder, S., Bonneau, J., Gennaro, R., Narayanan, A.: Escrow protocols for cryptocurrencies: how to buy physical goods using bitcoin. In: Kiayias, A. (ed.) FC 2017. LNCS, vol. 10322, pp. 321–339. Springer, Cham (2017). Scholar
  16. 16.
    Grazioli, S., Jarvenpaa, S.L.: Perils of internet fraud: an empirical investigation of deception and trust with experienced Internet consumers. IEEE Trans. Syst. Man Cybern. - Part A: Syst. Hum. 30(4), 395–410 (2000)CrossRefGoogle Scholar
  17. 17.
    Hitchens, R.: Solidity CRUD - Part 1 (2017). Accessed 01 May 2018
  18. 18.
    Jøsang, A., Ismail, R., Boyd, C.: A survey of trust and reputation systems for online service provision. Decis. Support Syst. 43(2), 618–644 (2007)CrossRefGoogle Scholar
  19. 19.
    Leber, J.: Going head to head with Google and Facebook, Amazonś next big business could be advertising. MIT Technology Review (2014)Google Scholar
  20. 20.
    Mochi Inc.: Mobius: a universal protocol suite for the blockchain ecosystem and real world data, November 2017. Accessed 02 May 2018
  21. 21.
    Nasonov, D., Visheratin, A.A., Boukhanovsky, A.: Blockchain-based transaction integrity in distributed big data marketplace. In: Shi, Y., et al. (eds.) ICCS 2018. LNCS, vol. 10860, pp. 569–577. Springer, Cham (2018). Scholar
  22. 22.
    Nidhra, S., Dondeti, J.: Black box and white box testing techniques-a literature review. Int. J. Embed. Syst. Appl. (IJESA) 2(2), 29–50 (2012)Google Scholar
  23. 23.
    Notheisen, B., Cholewa, J.B., Shanmugam, A.P.: Trading real-world assets on blockchain. Bus. Inf. Syst. Eng. 59(6), 425–440 (2017). Scholar
  24. 24.
    Ramesh, B., Cao, L., Baskerville, R.: Agile requirements engineering practices and challenges: an empirical study. Inf. Syst. J. 20(5), 449–480 (2010). Scholar
  25. 25.
    Resnick, P., Zeckhauser, R.: Trust among strangers in Internet transactions: empirical analysis of eBay’s reputation system. In: The Economics of the Internet and E-Commerce, pp. 127–157. Emerald Group Publishing Limited (2002)Google Scholar
  26. 26.
    Smart, J.F.: BDD in Action: Behavior-Driven Development for the Whole Software Lifecycle. Manning Publications, Shelter Island (2014)Google Scholar
  27. 27.
    Subramanian, H.: Decentralized blockchain-based electronic marketplaces. Commun. ACM 61(1), 78–84 (2017)CrossRefGoogle Scholar
  28. 28.
    Swamynathan, G., Almeroth, K.C., Zhao, B.Y.: The design of a reliable reputation system. Electron. Commer. Res. 10(3–4), 239–270 (2010)CrossRefGoogle Scholar
  29. 29.
    Szabo, N.: Formalizing and securing relationships on public networks. First Monday 2(9) (1997).
  30. 30.
    Vaishnavi, V., Kuechler, W.: Design science research in information systems (2004).

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Cyber Security Research Group, College of Engineering and TechnologyUniversity of DerbyDerbyUK

Personalised recommendations