The Role of Blockchain in Enhancing Web Security and Privacy in Digital Transactions

Abstract

Security and privacy in digital transactions have become major concerns as the use of online platforms across various sectors increases. Blockchain presents a promising technology with its decentralization, transparency, and robust encryption capabilities to ensure data integrity and confidentiality. This research aims to explore blockchain's role in enhancing the security and privacy of digital transactions and identify implementation challenges.

The research method used a qualitative approach with case studies on five blockchain-based e-commerce platforms and involved 100 active users. Data were collected through interviews, questionnaires, and observations, then analyzed using thematic analysis techniques and descriptive statistics. The results showed that more than 80% of respondents felt blockchain provided a higher level of security than traditional systems, while 70% of users reported an increased sense of security in data privacy. Blockchain has been proven to reduce the risk of transaction fraud and information leakage by giving users full control over their personal data.

However, this research also revealed barriers, particularly related to scalability, cost, and transaction speed. Identified solutions include utilizing more efficient consensus mechanisms such as proof-of-stake and implementing layer-two technologies like the Lightning Network. The findings demonstrate blockchain's transformative potential in creating trustless digital transaction environments while highlighting the necessity for technological advancement in consensus algorithms and network infrastructure. This study contributes theoretical insights into blockchain's privacy-preserving mechanisms and provides practical frameworks for organizations considering blockchain adoption in their digital transaction systems. Thus, blockchain has significant potential to revolutionize digital witnessing by enhancing security and privacy, although further innovation is needed for its widespread and sustainable adoption.