Using Bitcoin Smart Contracts in Your Online Marketplace

Using Bitcoin Smart Contracts in Your Online Marketplace

in Tutorial

Workshop: Building a Decentralized Marketplace with RSK

What is an online marketplace?

An online marketplace is typically a type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Marketplace operators typically charge third parties transaction fees for products sold on their site. This fee is either passed on to the consumer or absorbed by the third party seller.

These marketplaces are often governed by the marketplace operator who then determines who is allowed to sell and who is not. The marketplace operator also has exclusive access to information such as the top-performing products on their marketplace, and control over product exposure. This power has often been abused by marketplace operators who might look to create copy cat products based on the best performing products in their marketplace and delist the original competitors. 

What does it gain from being decentralized?

In a decentralized marketplace, there is no longer a need for a marketplace operator. That means more profit for sellers, and in the case of a public blockchain, more transparency for buyers. 

What is RSK

Until now, Bitcoin did not support smart contracts, so developers built their dApps on Ethereum or other smart contract platforms. RSK uses the same programming language as Ethereum (Solidity), enabling developers to build dApps without the need to learn new programming languages. And since RSK is a sidechain that is 1–1 pegged with BTC, increased usage on RSK means increased usage on BTC.

Since RSK is compatible with Solidity and the Ethereum Virtual Machine, it is also compatible with Blockmason Link. Using the familiarity of Solidity and the ubiquity of Bitcoin, combined with the ease of Link makes for a potent decentralized solution.

Why RSK is a great option for a decentralized marketplace

RSK is a powerful solution for developers who are thinking of building a decentralized marketplace. The reason why RSK can be so effective is because of its ability to create smart contracts that work with Bitcoin. By using BitCoin, one of the most popular cryptocurrencies available, a developer building an online marketplace may not need to rely on having cryptocurrency on and off-ramps, reducing friction between selling a product and collecting the revenue from your sale. 

Build your decentralized marketplace

Building a decentralized marketplace is a great way to take advantage of blockchain technology, but if you have never worked with blockchain before it can sound daunting. That’s where Blockmason Link comes in. Link is a powerful yet lite blockchain development tool that allows any developer to build applications that interact with blockchains through simple web-based APIs. Sound interesting? You can use Link for free to build your decentralized marketplace through this online workshop. https://github.com/blockmason/ecommerce-workshop

In this comprehensive workshop, you will build a functional e-commerce marketplace web application using blockchain-powered microservices.

This workshop is intended for developers who have little or no prior blockchain experience. It is recommended that you have some familiarity with JavaScript, Node, and NPM. Experience with Solidity, the language used to write smart contracts, will be helpful.