THE ROLE OF BLOCKCHAIN IN SECURING ONLINE TRANSACTIONS

Abstract

In today's digital era, online commercial transactions have become an integral part of global trade, reshaping traditional marketplaces through the power of the internet. However, the growth of e-commerce has come with serious concerns surrounding the security, transparency, and trustworthiness of transactions conducted virtually. A major challenge remains the vulnerability of centralized systems to fraud, data breaches, and manipulation. This paper critically examines the role of blockchain technology in securing online transactions, offering a detailed analysis of how its features such as decentralization, immutability, transparency, and automation through smart contracts address existing shortcomings in traditional e-commerce systems. The paper adopts a doctrinal research methodology, relying on secondary data from academic journals, textbooks, online articles, and relevant case studies to provide a comprehensive understanding of the subject matter. The core objective of this paper is to establish how blockchain enhances the safety and credibility of online transactions, thereby boosting consumer confidence in digital marketplaces. It also aims to clarify the public misconception that blockchain is synonymous with cryptocurrency, while emphasizing its broader applicability. Findings suggest that blockchain significantly reduces human error, eliminates the need for third-party verification, and ensures transaction integrity through a decentralized and tamper-proof ledger. Smart contracts further automate and enforce agreements without the need for intermediaries, making transactions faster, more efficient, and more secure. The paper recommends the adoption of blockchain infrastructure by major online platforms, the education of stakeholders on its uses beyond cryptocurrency, and the creation of supportive regulatory frameworks to govern its deployment. In conclusion, blockchain stands out as a revolutionary tool in securing online transactions, promising a future of safer, faster, and more transparent digital commerce.