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In emerging economies, with the explosion of e-commerce, payment methods have increasingly enhanced security. However, Cash-on-Delivery (COD) payment method still prevails in cash-based economies. Although COD allows consumers to be more proactive in making payments, it still appears to be vulnerable by the appearance of a third party (shipping companies). In this paper, we proposed a payment system based on “smart contract” implemented on top of blockchain technology to minimize risks for parties. The platform consists of a set of rules that each party must follow including specific delivery time and place, cost of delivery, mortgage money; thereby, forcing parties to be responsible for their tasks in order to complete the contract. We also provided a detailed implementation to illustrate the efficiency of our model.

Towards a Mechanism for Protecting Seller’s Interest of Cash on Delivery by using Smart Contract in Hyperledger