How Blockchain can solve eCommerce Challenges
eCommerce is a platform where sellers and buyers connect to perform a trade, exchange of goods, digital goods, products, and services. The industry is comparatively new and brings a variety of challenges for the stakeholders. With the number of online users growing worldwide, people are adopting eCommerce and online payments.
Blockchain technology is known for its volatile cryptocurrency Bitcoin. It is also a possible solution for a variety of solutions in the eCommerce industry. According to a report by Statista, the Blockchain industry will grow by 400 % by 2021 and is going to disrupt various industries altogether. The use cases of Blockchain are endless, and eCommerce is the perfect match for the technology to grow its roots.
What Is Blockchain?
Blockchain is a decentralized digital record that stores a list of transactions in blocks over a peer-to-peer network. A cryptographic value links these blocks. This allows verifying the authenticity of each data. Cryptography refers to the study of the methods for secure communication. The blocks on a blockchain are linked with each other. The blocks cannot be tampered or modified once they are created. Moreover, a level of trust is created between the members of a blockchain network.
Syncomint believes that blockchain is extensively going to transform The eCommerce Marketplace in the following ways:
Transforming Payments
Blockchain has shown significant applications in the cryptocurrency world with the merits of cryptocurrency being launched across the globe. Many governments and bureaucracy tried to intervene, but peer to peer technology is clearly an alternative to traditional currencies that already has early adopters.
The shift has been primarily because blockchain technology is decentralized and has various benefits for both customers and merchants. Blockchain technology is not regulated by any central authority or government board, which allows users to save processing fees to third party processing agents and brings transparency in the transactions. The cryptocurrency also doesn’t reveal the identity of the transacting parties and provides the hashcode to each transaction. There is no limit to transactions and geographical boundaries when it comes to payment through Blockchain Technology. It is easy to use and absolutely free. The transactions are comparatively faster than traditional banking transactions, making it the ideal future payment method for the global economy.
Intelligent Supply Chain Management
The supply chain is one of the most challenging processes in warehousing for eCommerce businesses. However, the supply chain is also the backbone of the eCommerce industry, which never stops. Blockchain can completely transform the supply chain by solving core issues like tracking of products, record keeping, and reconciliation of data in a centralized database. By implementing Blockchain Technology into the supply chain, enterprises can track products, access information with the help of RFID tags, and embed sensors to transform the whole value chain. From dispatch to delivery of the product, accurate provenance tracking can also be leveraged to detect errors in any segment of the supply chain. Blockchain also reduces the cost incurred by systems and also guarantees the security of transactions. When intermediates and third parties are eradicated from the chain, companies can reduce fraud, bring parity, and increase revenue at the same time.
Retain Ownership and Beat Fraud
Blockchain allows streamlining operations and enhances efficiency by imbibing payment processing and helping logistic partners to regulate through smart contracts. Due to the decentralized database of Blockchain, marketplaces can have complete ownership of their assets such as description, product photos, product reviews, videos, digital storefronts, and consumers can easily view the information from the origin and the original components of the product.
Highly Secure
eCommerce stores are prone to security issues and can fall prey to weak encryption. Even large eCommerce companies are hacked, and consumer’s confidential information is leaked. A security hack can lead to loss of revenue and goodwill for the business. This is where Blockchain comes into the place, as it can prevent hackers from breaking into the network and accessing confidential consumer information and databases. The decentralized ecosystem has a single point of entry, which makes it secure enough from any kind of breach.
Robust Integration
The potential of Blockchain is much more than just processing online payments and cryptocurrency. Blockchain has the power to integrate existing and new systems into the eCommerce platform and also integrate various business processes, partners, stakeholders, teams, internal and external systems, and services together. The shared ledger of Blockchain helps everyone to track store details, shipments, and more.
Data on Demand
Blockchain can store purchase history, transaction details, database records, sales returns, and unsuccessful payments, which can provide detailed insights to improve the shopping experience. Companies can use this data to provide personalized feeds, recommended products, and services to fulfill consumer preferences and improve sales by leaps and bounds.
Way Forward
Blockchain and eCommerce is a match made in heaven, which has various benefits for businesses and startups. Blockchain facilities to achieve growth and bring transparency to the business. Blockchain is an enabler for efficiency, productivity, and managing customer data in a reliable manner. From paper-based legacy systems to hyper-ledgers, Blockchain is undoubtedly the most cutting edge technology for any eCommerce enterprise.
