The Relationship between Blockchain Technology and User Trust on Ecommerce

Platforms

Authors: Gabrielle White- 2111605, Sherrisa Pinnock - 2100762 , Rushane Green-2006930,

Renae Beckford - 2101041 , Aaliya Burrell - 2008272

UE2 Friday 5:00pm

February 15, 2024

The Electronic Commerce (e-commerce) industry is the most susceptible industry to

security threats and cyber attacks, experiencing a high vulnerability rate of 32.4%

(Venkataratnam, 2020). This vulnerability is primarily attributed to the storage and exchange

of critical and sensitive data, making e-commerce sites and apps appealing targets for

malicious actors. Furthermore, around 60% of the ecommerce companies, which have

received a security attack, have wiped off businesses within six months (Venkataratnam,

2020). The erosion of users' trust due to concerns about privacy and transaction security in

e-commerce platforms has become a hindrance to the industry's growth. In fact, a survey

examining 6000 customers' data found that trust in e-commerce platforms was given more

importance than price (Soleimani, 2022).

Can blockchain technology truly foster users' trust in the Business to Consumer

industry of Jamaica on e-commerce platforms? Numerous scholarly sources assert that

blockchain technology presents a viable solution to the aforementioned issues, as it offers

unparalleled safeguarding against malicious actors and fraudulent activities due to its

decentralised architecture and inherent resistance to manipulation. Also, in light of the

escalating attacks on e-commerce businesses and users diminishing trust, blockchain emerges

as a potential solution for brands in the e-commerce industry to cultivate user trust and

establish a more secure environment (Roy, U. K., and Tang, W. 2021). By enabling users to

track transactions at their convenience and providing access to extensive verified data about

products and services, blockchain empowers users to make informed decisions, thereby

enhancing trust in the consumption process (Van Dijk, K. N., 2021).

However, while research explores blockchain's potential for trust in e-commerce,

there are significant gaps that exist in the literature. Most research focuses on theoretical

discussions on how blockchain can improve trust, lacking empirical studies testing the impact
 Blockchain in Jamaica’s E-Commerce Businesses

of blockchain on trust. For example, a recent review on the challenges and applications of

blockchain by Taherdoost, H., & Madanchian(2023) briefly included how blockchain may

build trust and confidence in e-commerce but does not give empirical evidence speaking to

the extent of that claim. Furthermore, studies rarely analyse user perception and adoption

within specific cultural contexts like Jamaica, making generalizability challenging. For

instance, exploratory research conducted by Noé van Dijk(2021) found that blockchain was

highly influential in trust building but the study's focus on Irish citizens raises concerns about

applying its findings to demographic profiles prevalent in developing countries, like Jamaica.

Research Problem

As observed by the literature, the susceptibility of the e-commerce sector to cyber threats

poses a significant challenge, exposing businesses to security threats and closures. The

industry's growth is hindered by a decline in consumer trust, driven by concerns about

privacy and security. Although blockchain technology is proposed as a potential solution,

research gaps persist, particularly in understanding its impact on trust within the unique

context of Jamaican e-commerce.

Purpose

The aim of this study is to investigate the factors influencing the trust levels of Jamaican

users in e-commerce platforms and to explore the correlation between perceptions of

blockchain technology and levels of trust in e-commerce transactions among users.

Research Questions

1. What distinguishing features of an e-commerce platform contribute to higher levels of

trust among Jamaican users in comparison to others?

2. What is the correlation between perceptions of blockchain technology and levels of

trust in e-commerce transactions among Jamaican B2C users?

Significance

The findings of this study will be significant because they may provide insights into the

potential of blockchain technology to improve security and trust in the e-commerce industry

in Jamaica. This information can be used by businesses, policymakers, and consumers to

make informed decisions about the adoption of blockchain technology.

Definition of Terms

❖ Blockchain Technology is an advanced database mechanism that allows transparent

information sharing within a business network.

❖ E-commerce is the purchase or sale of goods or services over any kind of computer

network.

❖ B2C (Business to Consumers): B2C refers to the transactions and relationships where

businesses sell products or services directly to consumers.

❖ Security: This involves a combination of techniques, decentralisation and smart

contract security measures to protect against unauthorised access, fraud and

tampering.

❖ Threats: Refers to the potential vulnerabilities or risks to the integrity, confidentiality,

and availability of data and processes within the blockchain and e-commerce systems.

❖ Attacks: Refers to the deliberate, malicious actions or strategies aimed at exploiting

vulnerabilities within the blockchain and e-commerce systems.

Methods

Our research methodology employs a cross-sectional study design targeting a diverse

sample of Jamaican e-commerce users to investigate trust dynamics within the context of

online shopping. We aim to gather quantitative data on trust levels, perceptions of blockchain

technology, and experiences within the e-commerce landscape through the utilisation of

surveys.

Population

The target population encompasses individuals residing in Jamaica who actively

engage in online shopping activities. This target population spans across areas such as

e-commerce industries consisting of e-commerce users and businesses and also educational

institutions to enhance the study's depth and breadth in examining blockchain's impact on

e-commerce trust in Jamaica.

Sampling Methodology

Given resource limitations inherent to our student-led research, a convenience

sampling approach will be employed. While convenience sampling allows for practical

recruitment of participants readily available to researchers, we acknowledge its limitations in

terms of representativeness.

Survey Design and Pilot Testing

Surveys will undergo rigorous pilot testing to ensure validity and reliability prior to

administration. Pilot testing will involve selecting a subset of participants to provide feedback

on survey clarity, relevance, and comprehensiveness. Modifications will be made based on

pilot feedback to enhance the reliability and validity of the surveys.

Data Collection

410 respondents will be recruited from various areas such as e-commerce industries

consisting of e-commerce users and businesses and also educational institutions namely
 Blockchain in Jamaica’s E-Commerce Businesses

lectures and students. Surveys will be distributed electronically, with reminders sent to

maximise response rates.

Data Analysis

Quantitative data collected from surveys will be analysed using appropriate statistical

methods, such as descriptive statistics, regression analysis, and factor analysis. This

analytical approach will enable us to explore relationships between trust levels, perceptions

of blockchain technology, and e-commerce experiences within the Jamaican context.

Generalizability

While our study aims to provide insights that are generalizable to the Jamaican

e-commerce landscape, we acknowledge potential limitations to the external validity of our

findings. Factors such as sample demographics and unique market characteristics may impact

the generalizability of our results beyond the study context.

Ethical Considerations

Ethical considerations, including informed consent, confidentiality, and data

protection, will be strictly adhered to throughout the research process. Participants will be

provided with clear information about the purpose of the study, their rights as participants,

and measures taken to ensure the confidentiality of their responses.

By implementing these methodological strategies, we aim to conduct a robust study

that generates valuable insights into the intricate dynamics of trust within the Jamaican

e-commerce context.
 Blockchain in Jamaica’s E-Commerce Businesses

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Appendix

Contribution Report

Members Key Contributions

Gabrielle White - 2111605 Background, Research questions, Purpose

Sherissa Pinnock - 2100762 Background, Research questions, Methods

Renae Beckford - 2101041 Definition of terms

Rushane Green - 2006930 Research problem

Aaliya Burrell - 2008272 Significance