A Review of the Historical Development of Blockchain and Cryptocurrencies in Electronic Commerce

Document Type : Original Article

Authors
Mehran Bahram Arjavand
Yegane Kharat
Ali Kalantari
Fatemeh Kamalinezhad
Bachelor's student in Financial Management, Sari Branch, Islamic Azad University, Sari, Iran.
10.22034/jmek.2024.148629
Abstract
Following the financial crisis and widespread distrust in central institutions, global financial markets witnessed the emergence of a novel phenomenon: cryptocurrencies. Digital currencies, fundamentally rooted in the science of cryptography, operate without central banking intermediaries, thereby enabling seamless global transactions. These digital assets are generated and managed on a decentralized technological framework known as blockchain. Blockchain, functioning as an immutable and transparent distributed ledger, has revolutionized e-commerce by enhancing security, transparency, and trust in digital interactions. This study aims to analytically review the historical evolution of cryptocurrencies and blockchain technology, comprehensively evaluating their underlying mechanisms, advantages, disadvantages, and practical applications within the modern digital ecosystem. Utilizing a descriptive-analytical method based on a systematic review of existing literature, the research examines consensus mechanisms, cryptographic security protocols, and associated challenges such as high energy consumption. Findings indicate that eliminating financial intermediaries, significantly reducing transaction costs, and ensuring absolute data integrity through advanced cryptography are the most significant features of this technology. Furthermore, the advent of Bitcoin as the first pure digital asset, alongside the development of advanced platforms like Ethereum for executing smart contracts, has opened unprecedented horizons for the digital economy. Ultimately, despite existing technical and environmental challenges, blockchain and cryptocurrencies are poised to become the fundamental backbone of next-generation e-commerce, paving the way for widespread global adoption and decentralized digital commerce.
Keywords
Digital Currency
Blockchain
Bitcoin
Decentralization
Security
E-commerce
Subjects
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  • Receive Date 12 June 2021
  • Revise Date 02 August 2025
  • Accept Date 25 August 2022