Since the dawn of digital transformation and the rise of e-commerce, the tables of applications as well as the development of WordPress websites have experienced a major transformation. Artificial Intelligence and augmented reality, as well as data analytics and virtual reality have provided a significant boost to the e-commerce sector.
In the study the sales of e-commerce have already surpassed $2.34 trillion, and are now reaching new levels.
Payment gateways have created the e-commerce industry to a whole new level through the advent of PayPal, Braintree, and Stripe. Users are also able to pay with their debit or credit cards. However, this has always been a security risk because we’ve seen numerous instances of fraudulent transactions, and credit card information being compromised.
Digital transformation has however brought an efficient solution to this issue through the introduction the blockchain tech.
A Gartner report predicts that the market for blockchain will increase to $176 billion in 2025. In addition the Statista report claims that revenue from blockchain will grow by 400% over the next two years.
We know that blockchain technology is the basis for an idea of crypto. The top companies that offer cryptocurrency include Wikipedia, Microsoft, KFC, Expedia, and many more.
Function for Blockchain the E-Commerce
As the market expands, market for e-commerce, the online stores must cater to massive amounts of information associated with transactions, customers as well as inventory. This massive amount of information must be efficiently maintained and stored to achieve the best outcomes.
The blockchain technology has been developed to tackle the problem. The distributed and decentralized ledger system is a part of a growing database of records, referred to as blocks. It assists in recording the transactions of two people in a verifiable way.
Because each block is stored on a separate computer system, blockchain provides greater security and capacity. Additionally, if you manage your own online store using the Magento 2 platform, the blockchain technology can deliver effective outcomes.
Pay Methods to be more innovative
We’ve previously mentioned that the greatest innovation of Blockchain technology lies in the development of cryptocurrency like Bitcoin, Ethereum, and Ripple. Nowadays, cryptocurrencies are utilized in nearly every major industry like healthcare, banking manufacturing, retail, and even e-commerce.
One reason cryptocurrency has gained popularity is due to the fact that they are decentralised. They provide a lot more benefits opposed to traditional currencies, which are beneficial to both consumers as well as merchants.
Blockchain technology is not centralized means that there isn’t a central authority that can oversee or regulate it. Both the seller and buyer are in control of the blockchain. The currency cannot be devalued and deflated at the request of any state or other financial institution.
Another advantage that blockchain provides the owners of e-commerce is that it doesn’t divulge the identities of two people involved during the purchase.
Both customers and merchants benefit from the convenience of transactions using cryptocurrency. There’s no restriction on the amount that can be transferred in one bank account the next. The fact that blockchain is a breeze to use makes it a cake worth eating. Blockchain speeds up transactions and also reduces the risk of fraud.
The development in the Supply Chain Market
Recently the supply chain industry has presented a variety of challenges for the business of e-commerce. However, the use Blockchain technology proven to be more than useful in resolving problems like keeping records, tracking products and providing the possibility of a central database.
- Blockchain technology can reduce the burden of record keeping and traceability. This means you can see the details of the product through RFID tags and sensors that are embedded.
- Blockchains simplify the management of supply chains. It instantly reduces the cost, without compromising the transaction security.
- Since the blockchain does not allow for interaction with any intermediary and thus the risk of fraud and duplicate products are diminished, which saves both time and money.
- Blockchain technology can also be utilized technology for the backend of e-commerce. It is a great way to control and improve the efficiency of inventory. There is no need to incur additional costs like the recruitment of new staff members.
Offering a more transparent marketplace
Retailers and customers alike have been confronted with issues related to transparency. It has proved to be a major issue for the industry of e-commerce. As an example there were some instances when an online platform has removed or blocked a merchant account without a reason.
Thanks Blockchain technology it is able to effectively monitor any illegal act on behalf of the retailer because of a decentralized system.
We provide secure and reliable security
One of the main reasons the reason more online retailers are attracted by blockchain technology is due to strong security.
Blockchain technology provides Distributed Ledger Technology (DLT) which improves security of databases on the internet. The fact that security vulnerabilities on blockchain-based systems have gone to the ground, makes them the perfect choice for online retail stores.
Merchants and customers are not required to disclose the details of their private information when they conduct transactions. The buyer can authorize the payment through his wallet by himself. This eliminates all dangers posed by cyber-attacks.
Slamming Genuine Reviews and Personal Offers
Reviews, whether positive or negative are a significant factor in the way people visit the online store. However, many e-commerce sites and apps are faced with the problem of fake reviews, which could affect the image of the business.
The blockchain technology has come to help. It allows you to verify the authenticity of reviews, and also eliminate fake reviews since it stores the reviews in blocks.
Implementing blockchain could be beneficial from a marketing standpoint also. It can help e-commerce retailers give reward points to customers who exceed an amount that is specified. This allows them to gain advantage of discounts.
Closing it up
The world of e-commerce has evolved into a digital one with blockchain technologies changing it on a larger size. However, the application the technology in the early stages and will require time before it can truly take off.
