Case Study: EcommerceCoin

Alan Warms
Oct 24, 2018 · 3 min read

EcommerceCoin (fictional) has launched a stablecoin, on the Stellar blockchain, to be used in ecommerce and physical retail. Retailers are excited to use the coin because of low transaction fees, compared to major credit cards. Use of the coin also creates significant marketing and promotional activities for retailers from a coalition loyalty program perspective. The coin’s stabilization mechanism is agreement by retailers to peg to a USD value.

The Problem

The demographics of the consumers who shop at the participating retailers and ecommerce players skews older and female — primarily Chief Household Officers shopping for themselves and their family. These CHOs are conditioned by shopping at sites such as Amazon, Zappos, etc. to login and use a saved credit card to make purchases. In focus group testing with these consumers, it became clear that relying on a digital crypto wallet would be a significant impediment to adoption:

  • Consumers just as likely to shop on the web vs. phone and need a convenient web-based option to do that

EcommerceCoin realized there was no way to get around these significant issues using on-device crypto wallets.

The Solution

EcommerceCoin is using the ChainFront Cloud Service (CCS) to resolve these issues. Using the CCS, EcommerceCoin was able to make the use of crypto technology completely invisible to the end user. Consumers simply login using MFA, and can see an account balance and use it to spend against purchases (similar to PayPal). From a consumer’s perspective there is no private key to remember, backup, or manage — it is all done behind the scenes by the CCS.

How it Works

  • As part of setup, EcommerceCoin works with ChainFront to establish a set of security roles and rules for their organization and retailers participating in this project.


By using ChainFront, EcommerceCoin consumers only need to login using the provided MFA to be able to use the coins. All barriers to adoption have been eliminated, as the consumer flow is identical any other service requiring MFA. Lost password and id are also recoverable using existing techniques.

Originally published at ChainFront.


We opensourced ChainFront as of 9/2019:

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