E-Commerce 3.0: The Rise of Decentralized Marketplaces and Smart Contracts

Abstract

With the advent of E-Commerce 3.0, a decentralized, blockchain-driven model that completely reimagines how online marketplaces function, e-commerce has entered a transformative phase. In contrast to its predecessors, E-Commerce 3.0 eliminates middlemen, builds trust, and empowers users by utilizing distributed ledger technologies, smart contracts, and token-based governance systems. The fundamental transition from conventional centralized platforms to decentralized marketplaces is examined in this paper, with an emphasis on the new paradigm's technological, financial, and regulatory ramifications. The study looks at popular blockchain-based marketplaces like OpenBazaar, Origin Protocol, and Boson Protocol using a mixed-methods approach that incorporates theoretical modeling, case study analysis, and platform data. According to the research, smart contracts enable peerto-peer trade without the need for third-party custodians, automate dispute resolution, and drastically lower transaction friction. Decentralized identity and payment systems also provide users with greater data sovereignty, reduced costs, and enhanced privacy. However, there are significant obstacles to E-Commerce 3.0 adoption. Some of these include token volatility, scalability problems on some blockchains, limited user accessibility because of technical complexity, and changing legal frameworks pertaining to digital assets and decentralized finance (DeFi). The article also explores how decentralized autonomous organizations (DAOs) will oversee future commerce platforms, offering perspectives on open and community-driven models of decision-making. This study shows that even though E-Commerce 3.0 is still in its infancy, it has the potential to democratize online trade through stakeholder incentive alignment, control decentralization, and increased transparency. The final section describes the policies, design concepts, and technological preconditions needed to construct safe, encompassing, and scalable decentralized marketplaces.