For a long time, both merchants and consumers have suffered from the various pain points of e-commerce platforms. Such great troubles as the high cost of advertising on the platform, and the behavior of order brushing, review brushing and so on has broken the rules of the game.
E-Commerce developed from the initial flow subsidy war to the later profit harvest relying on the customer flow by centralized servers. By controlling the flow, the platforms have rich advertising revenue. In order to get a higher ranking, merchants can only rank products through bidding on key words, in addition to getting more favorable reviews from customers. These two ranking mechanisms are exactly the root causes of the current troubles on the e-commerce platform.
In order to get a high score, many merchants choose the way of transaction brushing and review brushing, which cause the vicious circle. Almost all merchants use this way to make the platform’s scoring system almost be a decoration. And the pay to bid ranking mechanism helps powerful merchants almost monopolize the user traffic. Only need to bid high price to several key words, can the big powers make their goods in the most conspicuous position all the time.
In this case, it is difficult for products to be competitive on e-commerce platforms. Under the squeeze of capital strength of large merchants, it is difficult for small and medium-sized merchants to gain competitive advantages. The centralized servers of the e-commerce platforms make it difficult for users and merchants to truly participate in the operation of the platform.
Matocol uses blockchain technology to build a decentralized e-commerce ecosystem. All data like business information, customer information, shopping bills, logistics information, product reviews and consumer ratings will be recorded on the chain to build an user weighting system and incentive mechanism, thus forming a completely fair review and ranking system. Therefore, the e-commerce system can get rid of adverse mechanisms such as paid bidding and malicious brushing.
Matocol Protocol is based on the POS consensus rather than POW consensus. POS (Proof of Stake) is a consensus mechanism which determines the block accounting right with replacing the computing power with system right. The creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake). The more stake you have, the higher the probability to become the next block creator is. If POW gives the security of the system to mathematics and calculation, then the POS gives the security of the system to humanity.
Matocol’s network nodes must first pay the margin (the locked margin) to become “the verification node of the locked margin” before they can participate in the block creation and consensus formation. If any verification node does anything that Matocol deems as “invalid” or “malicious,” his margin will be forfeited and his rights of block creation and participation in the consensus will be revoked. The introduction of margin solved the problem of “nothing at stake”, namely the low cost of doing bad things in the classic POS protocol. Now there is cost for the man who has done bad things.
Meanwhile, Matocol creates unique user weighting system and incentive mechanism based on POS mechanism. After shopping, users can get the Token reward by leaving reviews. The more tokens the user has and the longer the holding time is, the higher the user weight is and the more token rewards can be obtained after the review. Matocol will use specific algorithms to calculate the weights and ratings of users, and eventually rank the scores of the merchants according to its rating. Therefore, more small and medium-sized merchants have more opportunities to participate in the ranking competition.
With API and SDK, Matocol can directly connect to the current e-commerce platforms, provide decentralized underlying protocol, and build an independent blockchain user review system, which may bring new vitality to current stagnant e-commerce market.
Company Name: Insight Data Talking Institute
Contact Person: Ronald Sims
Email: Send Email
Phone: (+44) 20 7698 1963
Address:215-217 Charlotte Street
City: London W1T 1RJ
Country: United Kingdom