Blockchain technology is no doubt a revolutionary technology. Besides giving rise to a currency, it has created a whole financial system. The market research report shows that consumers will generally accept this technology by 2025, and one place where blockchain has proven to work well is retail.
Ecommerce has been around for decades, and its evolution has been breathtaking. Thanks to technological advancements, the concept of online selling were born. The latest technology edition is blockchain, and it promises unmatched potential. It is true; blockchain enjoys a good run in the financial industry, and therefore is inching closer to thereal sectors of the economy – eCommerce.
Remember, the eCommerce industry has disrupted many things. So, implementing blockchain technology in the eCommerce marketplace will ignite a major shift by establishing a decentralized economy. Typically, eCommerce blockchain promises not only streamlining operations but alsoreducing complexities at all levels and eliminatingagents.
What is Blockchain?
Blockchain is a data structure holding transaction records and at the same time offering high-level transparency, decentralization, and security. Essentially, it is a chain of blocks containing data.
Here is how blockchain is transforming the e-commerce industry:
Transparency in the eCommerce Marketplace
Ecommerce platforms need transparency, and no other technology is efficient at offering high-level transparency than blockchain technology. The technology establishes a decentralized environment allowing efficient monitoring of transactions executed by businesses, merchants, or customers.
Note that transparency is an eCommerce marketplace efficiency and frictionless conducting of businesses. Also, a blockchain injects transparency in the supply chain to be leveraged to solve recordkeeping and product tracking issues.
Protection of consumer privacy
Customers give a lot of personal data to companies, and the companies store these data in their databases. Databases are prone to attacks, hacking, data losses, and system breaches. Losing a customer’s data to a third party might lead to trust issues, which will dramatically affect brand perception.
Blockchain can store consumer information securely. This secure decentralized ledger cannot be hacked. Only people with an exact private cryptographic key can access this data. Best of all, a consumer can control the amount of information they want to share. With blockchain, a consumer will know who needs their information and for what purpose.
Blockchain is heavily integrated into the supply chain system. Keep in mind; eCommerce depends on supply chain networks. So, introducing blockchain technology in the supply chain network makes it easy for consumers to track order status.
Also, blockchain makes it possible to track goods from manufacturer to retailer—such transparency level. Retailers can take advantage of the technology to track their stock, helping them make better sales forecast.
Blockchain makes it possible to know the product’s location in real-time – who is handling it, scheduled delivery time, dispatch time, etc. Besides, suppliers can track factors like temperature and humidity. In the end, it improves logistical efficiencies and reduces costs.
Payments and eCommerce
Blockchain allows retailers to accept cryptocurrency payments. Cryptocurrency is a beneficial payment mode for micropayments and cross-border payments. The process creates a digital record that helps streamline refund and return processes. Smart contracts, i.e., self-executing contracts, helps in automated refunds, instant payments, etc.
Blockchain is a secure platform because there has been almost negligible reporting of security breaches in blockchain-powered networks. All blockchain-based currencies do not show personally identifiable information, making them even safe. For instance, cryptocurrencies such as bitcoin are just like cash – you will not expose your sensitive data. You authorize a transfer from your wallet.
To distinguish transactions, the system uses randomly generated unique identifiers – tied to a user’s wallet. So the risk of losing customer data is non-existent when using blockchain technology.