Abstract:

 Blockchain technology has emerged as a catalyst in the transformation of digital business by providing safe, open, and secure payment system solutions. Its trustless character allows for the conducting of distributed transactions makes it ideal for the shifting demands of online exchanges. However, the commercial payment systems as offered in e-commerce confront issues such as transaction fraud, delayed settlement, and third-parties which significantly elevate expenses while diminshing effectiveness. Existing escrow systems are overly relying on a centralized authority, thus they are easily subject to manipulation and breaches. To address these issues, this research proposes Automated Escrow Services Architecture for Digital Commerce Payments Using Blockchain Based Smart Contract Implementation (BC-SCI). The BC-SCI model enhances the trust of both buyers and sellers by reducing dependence on external parties through smart contracts, which automate payment control and disbursement when agreed upon conditions are met. The proposed model ensures the maintenance of transactional integrity and a reduction in fraud risks by enclosing and disbursing funds using blockchain’s tamper-proof ledger and self-executing smart contracts. Through extensive testing and modeling, the results illustrate that compared to traditional systems, BC-SCI has significantly lower transaction time, operational costs, and vulnerabilities. It hence fosters greater trust and acceptance of the digital economy by encouraging an open, effective, and scalable approach for managing sales online.