IAES International Journal of Artificial Intelligence (IJ-AI)

Vol. 13, No. 2, June 2024, pp. 1380~1387

ISSN: 2252-8938, DOI: 10.11591/ijai.v13.i2.pp1380-1387  1380

Harnessing the power of blockchain technology to support

decision-making in e-commerce processes

Khaldun G. Al-Moghrabi, Ali M. Al-Ghonmein

Department of Computer Information Systems, Faculty of Information Technology, Al-Hussein Bin Talal University, Maan, Jordan

Article Info ABSTRACT

Article history: Technology, such as blockchain, has emerged as a promising solution for
addressing the challenges of e-commerce decision-making. In this study, we
Received Jul 12, 2023 explore the potential benefits of integrating blockchain technology into
Revised Sep 9, 2023 e-commerce and its role in supporting decision-making in e-commerce. We
Accepted Oct 21, 2023 also examine blockchain’s benefits in terms of enhanced security,
transparency, and efficiency for e-commerce platforms. Furthermore, the
study discusses the challenges of implementing blockchain for e-commerce,
Keywords: including scalability, integration, regulatory frameworks, user experience,
privacy, interoperability, and sustainability. By analyzing these challenges,
Blockchain the study provides valuable insights for future research and development
Decision support systems efforts to facilitate a seamless adoption of blockchain technology in
Decision-making e-commerce decisions. Blockchain technology holds the potential to
E-commerce transform an e-commerce ecosystem by overcoming these challenges and
Supply chain management unlocking its transformative potential.
This is an open access article under the CC BY-SA license.

Corresponding Author:
Ali M. Al-Ghonmein
Faculty of Information Technology, Al-Hussein Bin Talal University
Ma’an, Jordan
Email: [email protected]

1. INTRODUCTION
E-commerce’s rapid growth over the past few years has transformed business and consumer
behavior [1]. As e-commerce continues to grow, the need for efficient and secure decision-making processes
for businesses and consumers becomes paramount [2]. Traditional centralized systems have numerous
challenges related to these demands, such as data manipulation, lack of transparency, and vulnerability to
cyberattacks. To address these limitations, the advent of blockchain technology has emerged as a promising
solution [3].
The origins of blockchain technology can be traced back to the late 1980s and early 1990s when
researchers faced the challenge of verifying digital timestamps accurately. In 1990, Haber and Stornetta
published a groundbreaking paper titled “how to timestamp a digital document.” Their proposal involved
creating a hash chain, linking issued timestamps together to prevent documents from being tampered with by
backdating or forward dating. This initial concept laid the foundation for blockchain technology [4].
Blockchain, which is the underlying technology for cryptocurrencies, such as Bitcoin, has gained
considerable attention owing to its ability to create immutable, decentralized, and transparent transaction
records [5]. With its origins as a distributed ledger for recording cryptocurrency transactions, blockchain has
now evolved into a versatile technology with potential applications in multiple industries, including e-
commerce [6].
E-commerce operations can be supported in many ways using blockchain technology. E-commerce
can transform how e-commerce companies operate and make critical decisions by enhancing transparency,

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Int J Artif Intell ISSN: 2252-8938  1381

improving security, simplifying payment systems, enhancing trust and authentication mechanisms, and
enhancing customer experience. By embracing blockchain technology, businesses can obtain great efficiency,
transparency, and trust, ultimately driving growth and innovation in the e-commerce ecosystem [7]. Digital
assets can be stored, and transactions can be conducted under the protection of the blockchain [8].
This study aims to harness the features and functionalities provided by blockchain technology to
support decision-making in e-commerce processes. This paper is further organized as follows: section 2
presents a review of the literature on the development of blockchain technology and various technologies that
have implications for decision-making in the e-commerce main processes. Section 3 explores various
applications of blockchain technology in the context of decision-making in e-commerce. Section 4 discusses
the challenges and future directions. Section 5 concludes the study.

2. LITERATURE REVIEW
2.1. Blockchain technology
Blockchain technology is a distributed and decentralized digital ledger system that allows for
conducting secure and transparent recording, verification, and storage of transactions across a network of
computers [9]. This technology consists of a chain of blocks, where each block contains several transactions,
and each block is linked to the previous one through cryptographic algorithms, ensuring the immutability and
integrity of the recorded data [10]. Figure 1 shows how blockchains are linked together.

Figure 1. How blockchains are linked together

The development of blockchain technology can be traced through several stages. The early roots of
blockchain can be found in the concept of timestamping and hash chains [11]. In 1990, Haber and Stornetta
proposed a method for digitally timestamping documents using hash chains, preventing manipulation, and
backdating [4]. Then, in 1992, Haber et al. introduced merkle trees, a data structure that improved the
efficiency of blockchain systems. Merkle trees organized multiple time-stamped documents into a
cryptographically secured chain of blocks, with each block containing a unique hash representing all the
transactions within it [12]. In 2005, Finney, a prominent cryptographic activist, introduced a concept known
as “reusable proof of work (RPoW)”. This creative model combined elements from b-money, proposed by
Dai, and Back’s computationally difficult Hashcash puzzle, leading to the creation of cryptocurrency. RPoW
operated by registering the ownership of tokens on a trusted server, where users could verify the correctness
and integrity of transactions, effectively addressing the double spending problem [4].
The decentralized digital currency concept emerged with the emergence of the Bitcoin whitepaper
by the pseudonymous Nakamoto in 2008. Bitcoin introduced the first practical implementation of blockchain
technology, where transactions were recorded on a public ledger and validated by network participants
through a process known as mining [13]. After the success of Bitcoin, several other blockchain-based
cryptocurrencies and platforms emerged, each with its unique features and use cases. Ethereum, introduced in
2015 by Buterin, pioneered the concept of smart contracts, enabling the execution of self-executing
agreements on the blockchain [14]. Recently, the application of blockchain technology has received growing
interest, not only for cryptocurrencies. Enterprises also have recognized its potential for improving supply
chain management, enhancing transparency, and streamlining processes [15]. Consortia and standard
organizations, such as hyperledger and enterprise ethereum alliance, have been established to foster
collaboration and interoperability among various blockchain platforms [16]. Table 1 shows the timeline of
blockchain technology emergence.

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1382  ISSN: 2252-8938

Table 1. Timeline of blockchain technology emergence

Year Blockchain emergence
1990 Haber and Stornetta proposed a method for digitally timestamping documents using hash chains,
preventing manipulation, and backdating.
1992 Haber, Stornetta, and Bayer introduced merkle trees, which led to improved blockchain efficiency by
organizing time-stamped documents into secure blocks with unique hashes representing transactions.
2005 Hal Finney introduced RPoW, combining b-money and Hashcash puzzles for a cryptocurrency that
registered token ownership on a trusted server, addressing the double-spending problem.
2008 The decentralized digital currency concept emerged with the emergence of the Bitcoin whitepaper by the
pseudonymous Nakamoto, who introduced the first practical implementation of blockchain technology.
2015 Ethereum, by Buterin, presented the concept of smart contracts, enabling the execution of self-executing
agreements on the blockchain.

2.2. Technologies that enhance decision-making in e-commerce processes

Decision-making is considered an important factor that affects the success and efficiency of
e-commerce processes [17]. In recent years, researchers have explored various approaches and technologies
to support decision-making in the e-commerce domain [18]. This section examines key studies that highlight
the significance of decision-making in e-commerce processes and the technologies used to enhance decision-
making capabilities. Decision-making in e-commerce processes needs to consider a variety of factors,
including customer preferences, market trends, and operational constraints [19]. Intelligent decision support
systems can analyze vast amounts of data and provide valuable insights for effective decision-making
[20]–[22]. The integration of artificial intelligence and machine learning techniques lead to enhance decision-
making capabilities in e-commerce processes [23].
Another area of research focuses on utilizing data analytics and business intelligence tools to
enhance and support decision-making in the domain of e-commerce [22], [24]. The significance of real-time
data analysis and predictive analytics in e-commerce decision-making has been highlighted. The focus is on
employing data-driven approaches to gain actionable insights into customer behavior, market trends, and
inventory management [25]. This case empowers businesses to make informed decisions in the dynamic
e-commerce environment [26]. Furthermore, blockchain technology has emerged as a potential enabler for
enhancing decision-making in e-commerce processes [27]. As blockchain technology is applied to
e-commerce, it can contribute to the development of secure and transparent transactions, supply chain
management, and smart contracts [28]. In addition, blockchain technology provides a decentralized and
immutable ledger that enables trust, data integrity, and traceability, empowering decision-makers to make
reliable and efficient decisions in e-commerce processes [29].
In addition to technology-driven methods, decision-making in e-commerce operations is also
influenced by organizational and strategic factors [30]. The importance of strategic alignment between
e-commerce business models and decision-making processes must be considered. Effective decision-making
in e-commerce requires a thorough understanding of the business model, customer needs, and competitive
landscape [31]. This understanding leads to informed strategic choices and successful outcomes. Overall, in
this section of literature, we try to emphasize the significance of decision-making in e-commerce processes,
and we try to highlight various approaches to enhance decision-making capabilities. The integration of
artificial intelligence, data analytics, business intelligence tools, and blockchain technology provides
opportunities for highly informed and efficient decision-making in the dynamic and competitive e-commerce
landscape. Figure 2 demonstrates the most important technologies that enhance decision-making in
e-commerce processes.

Figure 2. Technologies that enhance decision-making in e-commerce processes

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3. APPLICATIONS OF BLOCKCHAIN IN E-COMMERCE PROCESSES DECISION-MAKING

Blockchain technology can improve the decision-making process in e-commerce in many areas. In
this study, we will address three: supply chain management, payment and settlement, and trust and security.
Blockchain technology enhances transparency and traceability in supply chains, streamlines payment
processes, and boosts trust while protecting sensitive data. By leveraging the blockchain, e-commerce can
make informed decisions, improve processes, and ensure secure and efficient transactions.

3.1. Supply chain management

Blockchain technology improves decision-making in supply chain management by providing high
levels of transparency and traceability [32]. With a decentralized and immutable ledger, all participants can
access real-time information about the movement and status of goods [33]. Owing to this transparency,
businesses can make great decisions about inventory management, production planning, and logistics. By
having a clear view of the supply chain, decision-makers can identify bottlenecks, optimize processes, and
respond promptly to any disruptions or delays [34]. Blockchain traceability features can help in decision-
making by providing a reliable record of each transaction and event. In addition, this feature reduces the risk
of fraud and counterfeiting by verifying the authenticity, quality, and compliance of products [35]. This
information helps in making decisions about supplier selection, ensuring compliance with regulations, and
building trust with customers.

3.2. Payment and settlement

Blockchain technology improves decision-making in payment and settlement processes by enabling
faster, secure, and cost-effective transactions [36]. Traditional payment systems usually involve
intermediaries, such as payment processors or banks, which can introduce delays and increase expenses [37].
With blockchain technology, transactions can occur directly between all parties in a peer-to-peer manner,
eliminating intermediaries and reducing settlement times [38]. These features enable businesses to make
faster decisions regarding payment processes, resulting in efficient cash flow management. In addition,
blockchain’s transparency and immutability provide trust and security in the decision-making process. All
participants can verify the integrity of transactions and ensure that payments are made only when the agreed-
upon conditions are met. This case mitigates the risk of fraudulent activities and enables businesses to make
well-informed decisions based on the reliability and transparency of payment processes.

3.3. Trust and security

E-commerce processes are significantly improved by blockchain technology in terms of trust and
security [39]. Owing to the decentralized and tamper-proof nature of the blockchain, security is enhanced
through the reduction of the risk of data breaches and unauthorized access [40]. This case provides
businesses with confidence in managing sensitive customer information, making decisions regarding data
protection processes, and complying with privacy regulations. Blockchain-based smart contracts enforce and
automate transaction terms, reducing the need for intermediaries [41]. Businesses can be confident that the
agreed-upon terms will be implemented as planned, allowing them to make confident decisions. The
transparency and traceability of blockchain also provide a high level of trust by allowing participants to
verify the authenticity and transaction reliability, thereby reducing fraud risk or counterfeit products [42],
[43]. With trust and security features, businesses can make well-informed decisions toward partnerships,
customer engagement, and risk management, leading to improved outcomes and increased trust among
stakeholders. Overall, blockchain technology facilitates supply chain management, payment and settlement
processing, and trust among participants by providing transparency, traceability, efficiency, and enhanced
trust. Hence, businesses are in a great position to make well-informed decisions, optimize processes, and
build strong relationships with customers and partners.

4. CHALLENGES AND FUTURE DIRECTIONS

Exploring the challenges and future directions that can arise when integrating blockchain technology
into e-commerce processes decision-making needs to address terms of scalability and performance
optimization, integration with existing infrastructure, regulatory and legal frameworks, user experience and
education, privacy and security enhancements, interoperability and standardization, and environmental
sustainability.

4.1. Scalability and performance optimization

One of the challenges or limitations in adopting blockchain technology for e-commerce process
decision-making is scalability [44]. As the volume of transactions increases, blockchain networks may face
some limitations in terms of processing speed and resource requirements. Future research and development
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should focus on optimizing the scalability of blockchain solutions, exploring techniques, such as layer-two
protocols, and off-chain computation to ensure that blockchain can handle high-volume e-commerce platform
transactions.

4.2. Integration with existing infrastructure

The integration of blockchain technology into existing e-commerce infrastructure can be complex
and requires careful planning. Compatibility issues, data migration, and interoperability challenges may arise
when connecting blockchain solutions with legacy systems [45]. Future directions should provide methods
and frameworks to ensure seamless integration of blockchain into existing e-commerce platforms, enabling
businesses to harness the power of blockchain without disrupting their current operations.

4.3. Regulatory and legal frameworks

As blockchain technology operates across borders, it involves multiple jurisdictions and legal
frameworks. Businesses face challenges when trying to navigate a complex regulatory environment that
surrounds blockchain and e-commerce [46]. Future research should focus on establishing clear legal
frameworks and regulations, particularly for blockchain technology, which handles smart contracts, digital
assets, and data privacy, to provide businesses with a secure and predictable environment for decision-
making.

4.4. User experience and education

The success of adopting blockchain in e-commerce processes decision-making depends on the level
of user acceptance and understanding. Many users may not be familiar with blockchain technology and its
benefits. Future directions should emphasize user experience design, simplifying the user interface, and
providing intuitive tools and applications that hide the complexities of blockchain technology [47].
Moreover, educational initiatives and resources should be developed to enhance awareness and
understanding of blockchain among e-commerce stakeholders.

4.5. Privacy and security enhancements

Blockchain technology provides inherent security benefits, concerns regarding data privacy, and
confidentiality persist [43], [48]. Future research should focus on developing privacy-enhancing technologies
within blockchain-based platforms, such as zero-knowledge proofs and secure multiparty computation, to
address these concerns. Additionally, exploring methods to protect sensitive information off-chain while
maintaining the transparency and integrity of the blockchain can further enhance privacy and security in e-
commerce process decision-making.

4.6. Interoperability and standardization

Blockchain solutions keep proliferating, ensuring that interoperability and standardization become
crucial [49]. Various blockchain platforms may have different protocols and data structures, making it
difficult to share and exchange information seamlessly. Future directions should prioritize the development
of interoperability protocols and industry standards to enable smooth communication and collaboration
between different blockchain networks and platforms, fostering an interconnected and efficient e-commerce
ecosystem.

4.7. Environmental sustainability

The consumption of energy associated with blockchain, particularly in proof-of-work consensus
mechanisms, raises concerns about its environmental effect [50]. Future research should focus on developing
energy-efficient consensus mechanisms, such as proof of stake, and exploring sustainable hosting options for
blockchain networks. By reducing the carbon footprint of blockchain technology, businesses can align their
e-commerce decision-making with sustainability goals. Table 2 (see in Appendix) shows every challenge and
its future direction that can arise when integrating blockchain technology into e-commerce processes
decision-making.

5. CONCLUSION
In conclusion, the integration of blockchain technology in e-commerce process decision-making
holds immense potential to transform the business. This study has explored the benefits of enhanced security,
transparency, and efficiency that blockchain offers to e-commerce platforms. However, this study has also
shed light on the challenges that need to be addressed for successful implementation. Scalability, integration,
regulatory frameworks, user experience, privacy, interoperability, and sustainability were identified as key

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Int J Artif Intell ISSN: 2252-8938  1385

challenges that require further research and development efforts. By addressing these challenges, businesses
can unlock the full potential of blockchain technology in supporting decision-making in e-commerce
processes. Future directions should focus on optimizing blockchain networks and exploring techniques, such
as layer-two protocols, to overcome scalability limitations. Seamless integration with existing e-commerce
infrastructure should be a priority, considering compatibility and interoperability. Establishing clearer
regulatory frameworks specific to blockchain will provide businesses with a secure and predictable
environment for decision-making. User experience design and educational initiatives are crucial to ensure
user acceptance and understanding of blockchain technology. Privacy and security enhancements, such as
zero-knowledge proofs and off-chain data protection, must be developed to address concerns and comply
with data privacy regulations. Interoperability protocols and industry standards are necessary for smooth
communication and collaboration among different blockchain networks. Additionally, future research should
address environmental sustainability concerns by exploring energy-efficient consensus mechanisms and
sustainable hosting options. To support decision-making in e-commerce processes using blockchain
technology, businesses need to consider these challenges and explore future directions. As a result,
blockchain technology can revolutionize e-commerce decision-making, enhancing security, transparency, and
efficiency. With careful consideration of the challenges and future directions outlined in this study,
businesses can leverage blockchain to enhance their decision-making processes and drive innovation in the
ever-evolving e-commerce industry.

APPENDIX

Table 2. Challenges and future directions for integrating blockchain technology into e-commerce processes
decision-making
Challenges Future directions
Scalability and Focusing on optimizing the scalability of blockchain solutions, exploring techniques such as layer-two
performance protocols, and off-chain computation to ensure that blockchain can handle high-volume e-commerce platform
optimization transactions.
Integration with Providing methods and frameworks to ensure seamless integration of blockchain into existing e-commerce
existing platforms, enabling businesses to harness the power of blockchain without disrupting their current operations.
infrastructure
Regulatory and Focusing on establishing clear legal frameworks and regulations, particularly for blockchain technology, which
legal frameworks handles smart contracts, digital assets, and data privacy, to provide businesses with a secure and predictable
environment for decision-making.
User experience and Emphasizing user experience design, simplifying the user interface, and providing intuitive tools and
education applications that hide the complexities of blockchain technology. Moreover, educational initiatives and
resources should be developed to enhance awareness and understanding of blockchain among e-commerce
stakeholders.
Privacy and security Focusing on developing privacy-enhancing technologies within blockchain-based platforms, such as zero-
enhancements knowledge proofs and secure multiparty computation, to address these concerns. Additionally, exploring
methods to protect sensitive information off-chain while maintaining the transparency and integrity of the
blockchain can further enhance privacy and security in e-commerce process decision-making.
Interoperability and Prioritizing the development of interoperability protocols and industry standards to enable smooth
standardization communication and collaboration between different blockchain networks and platforms, fostering an
interconnected and efficient e-commerce ecosystem.
Environmental Focusing on developing energy-efficient consensus mechanisms, such as proof of stake, and exploring
sustainability sustainable hosting options for blockchain networks.

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BIOGRAPHIES OF AUTHORS

Khaldun G. Al-Moghrabi serves as an assistant professor at the Department of

Computer Information Systems (CIS), Al-Hussein Bin Talal University, Jordan. He received
his bachelor’s degree in CIS from Al-Hussein Bin Talal University (2006) and holds a
master’s degree in CIS from the Middle East University in Jordan, 2009. In 2018, he earned
his doctorate degree in MIS from OIU, Sudan. His research interests include e-learning,
decision support systems, database systems, CC, big data, and the IoT. He can be contacted at
email: [email protected].

Ali M. Al-Ghonmein serves as an assistant professor at the Department of

Computer Information Systems (CIS), Al-Hussein Bin Talal University, Jordan. He received
his bachelor’s degree in Computer Science from Al-Hussein Bin Talal University (2004) and
obtained his master’s degree in CIS from the Arab Academy for Banking and Financial
Sciences in Jordan, 2008. In 2018, he earned his doctorate degree in Management Information
Systems (MIS) from Omdurman Islamic University (OIU), Sudan. His research interests
include information retrieval, decision support systems, database systems, cloud computing,
and the IoT. He can be contacted at email: [email protected].

Harnessing the power of blockchain technology to support decision-making in … (Khaldun G. Al-Moghrabi)