Co-Founder & COO
A typical eCommerce marketplace has witnessed its fair share of transitions and evolutions. With all these alterations underway — this domain has gone on to become one of the most lucrative sectors of the 21st Century.
So, what’s next on the plate for a traditional eCommerce business?
The answer is relatively simple and straight-forward — BLOCKCHAIN.
Blockchain has been enjoying a good run in the financial industry for quite some time now. According to a recent Statista Report, the global blockchain market is expected to see a surge of more than 400% by 2021.
As blockchain is inching closer to the real sectors of the economy — An increasing number of people have now started talking about other possible use-cases of blockchain apart from finance, especially in the most lucrative domain of them all — eCommerce.
The eCommerce industry has disrupted the way we shop & live, and blockchain is on its path to disrupt eCommerce. The implementation of blockchain technology in eCommerce marketplace will ignite a significant shift by establishing a decentralized economy.
Now, if you want to learn more about blockchain, then you must visit this link.
In this post, we are going to be extensively covering how blockchain is on its way transforming the ecommerce marketplace.
Stay tuned, as this post is definitely going to leave you surprised.
Blockchain witnessed its first implementation in currencies powered by its technology (like bitcoin, etherum, and ripple). Today, cryptocurrencies are being utilized as an alternative to traditional currencies.
This shift is due to the relative ease of implementation and the fact that they are decentralized. Bitcoin and other cryptocurrencies provide numerous advantages over traditional currencies which benefits both customers and merchants.
Some significant advantages are listed below,
With recent developments, it is very much likely that eCommerce marketplaces would soon allow consumers to pay with Bitcoin rather than Stripe or PayPal. In addition to being decentralized, secure and relatively easy to implement — sending and receiving money will become as convenient as scanning a QR code.
The relative ease of making payments is likely to be the first implementation of blockchain in the eCommerce marketplace.
Supply chain management is perhaps, one of the most pressing concerns every eCommerce business is marred with. Since the supply chain is a critical element of any eCommerce business — blockchain implementation in this sector will likely solve many problems.
Blockchain can be extensively leveraged to solve supply chain issues like recordkeeping, tracking of products as a less corruptible and better alternative to the centralized database.
Other use-cases of supply chain include,
With the recent backlash that big retailers have been facing in the wake of charges of lack of transparency — this is one of the more serious concerns faced by existing eCommerce platforms. For instance, Amazon was in the news for cutting-off and even disabling a merchant’s page without any explanation.
Thus, by applying blockchain technology in the ecommerce marketplace would establish a decentralized environment where any wrongdoings on the part of the business or merchant can be efficiently monitored.
A transparent eCommerce marketplace also facilitate in conducting transactions in a frictionless and efficient manner.
Moreover, with the declaration of recent blockchain projects by retail giants like Walmart and Unilever — it is evident that they are eyeing at gaining a foothold in blockchain-based offerings.
Blockchain today, can be easily deemed as one of the most secure platforms out there.
The Distributed Ledger Technology or DLT which blockchain boasts, offer excellent security for online database platforms that makes it ideal for implementation in eCommerce. Also, there has been almost negligible reporting of security breaches in blockchain-powered networks.
Another significant upside blockchain offers for eCommerce businesses is that blockchain-based currencies don’t exhibit personally identifiable information.
Currencies like Bitcoin operate like cash in the sense that they don’t require a consumer to expose sensitive data. In fact, the customer himself authorizes a transfer from his/her own personal “wallet” to that of the recipient. The only distinguishing piece of data tied to each user’s wallet is a randomly-generated unique identifier.
Since cyber attacks and data theft has increased tenfold, there is an inevitable risk of losing customers data. Therefore, adopting blockchain is an absolute key to solving these challenges.
The eCommerce marketplace is waiting to be revolutionized by the applications of Blockchain. Although it may take us a little time to witness these implementations — change is definitely in the pipeline.
Besides being faster and considerably cheaper, blockchain facilitates most activities that the present day commerce systems allow without causing any third party interference, making it ideal for retailers.
Blockchain technology can finally be concluded as the backbone of businesses in the ecommerce marketplace.
1.Blockchain Technology Explained: Introduction, Meaning, and Applications, Also on Hackernoon
2. How is Blockchain Revolutionizing Banking and Financial Markets, Also on Hackernoon
3. How is Blockchain Disrupting the Supply Chain Industry?, Also onHackernoon
4. Everything You Need to Know About Smart Contracts: A Beginner’s Guide, Also on Hackernoon
5. Top 10 Reputable Blockchain Development Companies, Also onHackernoon
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