E-commerce Security Risks Mitigated By The Blockchain

  1. Back up your data. If your data is compromised in some way, you will want a backup ready to go so you can be back in business in an instant.
  2. Run routine security checks just to be safe and keep your antivirus software up to date.
  3. Make sure to review any third-party plugins and remove any that aren’t entirely necessary. These can introduce vulnerabilities.
  4. Your company’s security doesn’t rely only on the company’s internal security. Make sure to thoroughly vet any third-party vendors or partners who may have access to sensitive data.
  5. Protect your own devices and the devices of your employees. Use strong passwords and authentication methods.
  6. Use authentication methods for your customers and try to remind them to make strong passwords as well.
  7. Do your part to mitigate phishing attempts. On Telegram, many mods put “Will Not DM You” in their handles to prevent users from being tricked. Remind your customers of your protocols and communication methods. Be clear and consistent.

Blockchain Marketplaces are Better

The largest NFT marketplace, Opensea, is a great case study on how secure a marketplace based on the blockchain can be. With such massive volume for about five years, there have been very few scandals. The only notable scandal was uncovered on Twitter. An employee was engaging in insider trading by buying NFTs before they hit the market. Most, if not all, of the security risks so far have been human error.

How The Blockchain Can Help With Security

Blockchain technology excels at privacy and security. What’s better is that this security exists in a trustless environment. It is the safest way to store transaction data, and the crazy part is that no one is in charge. If e-commerce transactions could reside solely on the blockchain, we would be better off. But there is still a lot of power and convenience in Web2 systems as well as a world full of users. So how can blockchain integrations help maintain security in a Web2 environment? Let’s look at some common problems in e-commerce today.

  • If customers pay with their crypto wallet, no financial information needs to be entered and the transaction will be secure. Even fiat on-ramps typically do not require information to be stored.
  • If e-commerce sites begin to adopt decentralized storage, it will become impossible for hackers to gather that data or for it to be distributed without the user’s permission.
  • If brands sell ReserveX NFTs to their customers, then this problem can be solved. Unless a user holds a ReserveX NFT, their checkout button will not be visible. NFTs are impossible to fake, therefore these fraudsters will have no more options.
  • All transactions are transparent and visible on the blockchain. After coming back online, brands can get right back to where they started based on the data stored on the blockchain. Or if a fraudster recorded transactions on the public ledger, it won’t be incredibly difficult for the FBI to find.
To Top

Pin It on Pinterest

Share This