Please describe your proposed solution
Problem Recognition and Approach:
Blockchain is gradually integrating into daily life with applications like RWAs (Real World Assets) and DePIN. Amidst this wave of innovation, we aim to build a toolkit called ADACommerce to support thousands of small and medium-sized e-commerce businesses worldwide using the WordPress platform (currently the most popular web2 development platform, powering 478 million websites as of 2024, accounting for approximately 43.5% of all websites globally, according to statistics by WPZOOM: WordPress Statistics 2024) in easily transitioning to a Web3 e-commerce model.
With ADACommerce, businesses can connect to Cardano wallets, place orders, and make direct payments using ADA or any token in the Cardano ecosystem, such as WMT, MIN, IAG, SNEK, AGIX, SUNDAE, HUNT, JPG, INDY, COPI, PAVIA, FACT, and more. Moreover, they can handle disputes through smart contracts on Cardano. This opens up cross-border business opportunities with significantly lower and safer transaction fees compared to traditional payment methods like Visa/Mastercard or PayPal, providing benefits and peace of mind for both buyers and sellers worldwide.
Using ADACommerce, developers and e-commerce businesses will no longer face barriers in adopting Cardano's blockchain technology. The transition becomes simple and quick through the installation of the ADACommerce toolkit, similar to how they are familiar with using Woo plugins on WordPress. Once integrated, they will immediately possess the necessary features to kickstart their Web3 projects.
(Image 01: Integrate ADAcommerce into WP)
Below are the detailed functional modules of ADACommerce:
1.Cardano Blockchain Integration Module
- Cardano Wallet Connection Function: Allows users (buyers and sellers) to connect their Cardano wallets directly on the website. Supports popular wallets like Eternl, Yoroi, Nami, and other compatible Web3 wallets.
- Blockchain Communication Function: The system will integrate API and SDK to interact with the Cardano network, including sending/receiving transactions, verifying balances, and querying blockchain information.
(Image 02: ADAcommerce supports the integration of Cardano blockchain payment wallets directly into websites.)
2. Product Management Module
- Set Product Prices with Tokens:
Allows sellers to set product prices in ADA or any token within the Cardano ecosystem (e.g., WMT, Pavia, FACT).
In the future, it can support automatic price updates based on market rates via Cardano's Oracle projects.
- Inventory and Variants Management:
Manages inventory for each product, including different variations.
Supports physical products, digital items, and services.
- Product Description and Attributes:
Easily add detailed product information, including images, descriptions, and blockchain-related specifications (e.g., token ID, smart contract address).
Products can be edited or deleted.
3. Payment Module
- Payment Function:
Buyers can pay directly using ADA or other tokens through connected wallets.
Transactions are processed on the blockchain, ensuring transparency and immutability.
- Transaction Confirmation:
Real-time transaction confirmation system integrated, updating order status once confirmed on the blockchain.
- Transaction Fee Management:
Displays transaction fees clearly before payment confirmation.
Options for sharing or supporting fees between buyers and sellers.
(Image 03: Payment Token Selection on ADAcommerce)
4. Promotion and Discount NFT Module
- Issuing Discount NFTs:
Sellers can create and issue discount NFTs on the Cardano blockchain.
Each discount NFT contains information on the discount rate, usage conditions, and expiration.
All promotions are recorded on the blockchain, ensuring transparency and preventing fraud.
- Discount NFT Management and Usage:
Buyers can store discount NFTs in their wallets and use them when making purchases.
The system automatically applies the discount when a valid NFT is detected in the buyer's wallet.
Allows users to transfer or resell discount NFTs, creating a secondary market for promotions.
5. User Shopping Experience Module
- Wallet Connection:
A user-friendly interface allows users to connect or disconnect wallets with just a few simple steps.
- Token Selection for Payment:
Buyers can choose the token they want to use for payment during checkout, as set by the seller.
- Balance and Value Display:
Displays the current balance of tokens in the user's wallet.
Updates the product value corresponding to the selected token.
- Transaction and Order Status:
Provides detailed information on transaction status on the blockchain.
Notifies users when a transaction is confirmed or if an issue occurs.
6.Blockchain Order Management Module
Order Recording on the Blockchain: Each order is linked to a transaction on the blockchain, creating a transparent and immutable record.
Order Tracking: Buyers and sellers can track the status of orders using the transaction ID or order number.
Refund and Dispute Resolution: Supports a transparent and fair refund and dispute resolution process through smart contracts using the Escrow mechanism and mutual agreement.
Detailed Description:
- When the buyer makes a payment: Tokens are sent to the Escrow smart contract instead of directly to the seller. The Escrow contract holds these tokens until the predefined conditions are met.
- Defining Release or Refund Conditions:
- Release payment to the seller if: The buyer confirms receipt of goods and is satisfied. Or after a specified period with no complaints from the buyer.
- Refund to the buyer if: The buyer does not receive the goods within the defined timeframe. The buyer is not satisfied, and the seller agrees to a refund.
- Funds Freeze: If the dispute is not resolved, the funds will be frozen, awaiting further agreement.
- Activate Refund Process: When the refund conditions are met, the smart contract automatically transfers the tokens from Escrow back to the buyer's wallet. This entire process is automated and recorded on the blockchain.
Detailed Technical Specifications:
Smart Contract Setup with Transaction States:
- Transaction States:
- Pending: (Waiting for processing)
- Completed: (Transaction completed)
- Disputed: (Transaction under dispute)
- Disputed Completed Buy: (Dispute resolved in favor of the buyer)
- Disputed Completed Sell: (Dispute resolved in favor of the seller)
- Actions:
- Confirm Delivery by the Seller.
- Confirm Receipt by the Buyer.
- Open Dispute by either the Buyer or the Seller.
- Dispute Resolved for the Buyer.
- Dispute Resolved for the Seller.
Dispute Resolution Process:
- When a Dispute is Opened:
- The smart contract changes the transaction state to "Disputed."
- The payment is held in an Escrow account until the dispute is resolved.
- Resolving Disputes through Mutual Agreement:
- The buyer and seller work directly with each other and confirm the agreement.
- The smart contract changes the transaction state to "Disputed Completed Buy" or "Disputed Completed Sell."
- If the state is Disputed Completed Buy, the payment is refunded to the buyer.
- If the state is Disputed Completed Sell, the payment is released to the seller.
(In the future, we may develop a dispute resolution mechanism through the “Decentralized Arbitration” Protocol. Both parties would provide evidence (e.g., invoices, transactions, delivery information). Arbitrators (users or nodes in the network, randomly selected or chosen based on reputation) would review and vote based on the provided evidence. The decision would favor the buyer or the seller depending on the voting outcome. In this case, arbitrators may receive a token reward for participating in the dispute resolution or face penalties. If an arbitrator behaves unfairly, they may lose their staked tokens or have their reputation score reduced.)
(Image 04: Business Process Architecture Diagram in the System)
7.Shipping Management Module
- Supports integration with multiple shipping methods or connections to third-party carriers to provide delivery solutions.
- Connects to shipping services to automatically calculate fees and print shipping labels.
8. Reporting and Analytics Module
- Provides detailed reports on revenue, orders, best-selling products, and sales over time.
- Supports integration with Google Analytics to track customer behavior.
(Image 05:Revenue Reporting on ADAcommerce)
9. Customer Management Module
- Stores basic information provided by customers (address, phone number, email, purchase history) with customer consent to facilitate a smoother purchasing process.
10. SEO and Search Optimization Module
- As a plugin developed based on Woo and optimized for WordPress, ADAcommerce ensures SEO optimization, making it easier for products to be found on search engines like Google, Bing, Yahoo, etc.
- Supports the creation of friendly URLs, keyword optimization, and product description enhancement.
11. ADAcommerce Customization and Extension Capability
- Compatible with WordPress Themes: Integrates seamlessly with popular themes, allowing for custom store interface designs.
- Support for Additional Plugins and Extensions: Allows the installation of more plugins or extensions to add new features.
- API and Development Documentation: Provides APIs for developers to integrate more functionalities or connect to other systems. Detailed documentation helps developers understand and customize the plugin effectively.
(Image 06: The Perfect Web3 Solution for Innovating Traditional E-commerce Business)
ADAcommerce will deliver a comprehensive e-commerce solution with Cardano blockchain integration. With simple deployment through easy installation on the WordPress CMS platform, the features are designed to ensure transparency, security, and optimal user experience.