If you heard the term “blockchain,” what would be the first thing that came to mind? Most likely, a cryptocurrency like Bitcoin or Ethereum; however other options may also be available.
The use of cryptocurrencies in financial transactions is an obvious and important aspect of blockchain technology. Did you realize, though, that it has applications beyond finance? Recent estimates predict that by 2024, blockchain technologies will generate $20 billion in global market income.
Digital data and documents can transfer with this technology (be it money, invoices, or contracts). What are some of the other uses of blockchain technology? Blockchain technology may use to securely store and process personal data and identify individuals because of the system’s inherent transparency.
That’s why it’s expanding into new areas and thriving in others, particularly the e-commerce market. It’s time to either create a blockchain eCommerce platform or incorporate it into your current one, given the current state of the cryptocurrency market. In this post, we’ll take a high-level look at how Blockchain influences the world of digital currency trading.
Explaining Blockchain Technology for the Lazy
The name “blockchain” pretty much says it all. A blockchain is a continuously growing list of blocks that can use to record and verify transactions or other types of data.
P2P networks comprise these blocks, which collectively form a database. Contrasted with traditional databases, participants in these systems share the blocks and cannot edit or delete records. New ones must add instead.
Should we build an e-commerce platform on the Blockchain?
First and foremost, protecting the privacy of the millions of people who use e-Commerce platforms to transact business online is crucial. Confidential consumer information has been reported as hacked or disclosed to third parties before, with disastrous consequences. Numerous examples of compromising data security and integrity have resulted in extremely negative outcomes. As a result, it is crucial for e-Commerce sites to have full authority over protecting their customers’ private information, including both financial and personally identifiable details. When shopping online, customers want to feel safe that their personal and financial data won’t be compromised. Therefore, these platforms must use highly secure data-encryption software to protect user’s private information from hackers.
Management of logistics, also known as Supply Chain Management, is a fundamental but critically important part of every e-Commerce website (SCM). Supply chain management is crucial to the success of any enterprise, whether it be the agriculture industry, an online food delivery service, or an internet marketplace. From the factory through the wholesaler to the retailer to the customer, a product or commodity travels a long and winding road before reaching its final destination. To reach its final destination—the customer—the product must overcome N difficulties along the way. These include, for example, defective raw materials, production delays, ineffective vendor communication, payment processing challenges, and many others. It’s also impossible to dismiss illicit agents and intermediaries’ roles, who profit enormously by facilitating the process. Supply chain management (SCM) is possibly the most challenging and eventful part of the e-Commerce business.
Any e-Commerce operation is futile without a reliable payment transaction ledger. There are a lot of transactions that need to record safely in ledgers or account books to maintain a history of every little thing that happens along the way, from registering orders from consumers to recording payment details to tracking the order through the logistics journey to delivering the item to the consumer to returning or refunding the product, etc.
Blockchain can offer the ideal answer for e-Commerce enterprises with its distinctive characteristics of decentralization, immutability, and transparency to surmount these technical and operational hurdles. Let’s check out how a Blockchain-based e-commerce platform might improve efficiency in the workplace.
Varieties of Electronic Commerce Utilizing Blockchain
Connectivity to Core Business Functions Blockchain technology has many potential applications outside the financial sector. Distributed ledger technology’s (DLT) rapid expansion can largely attribute to the ease with which it can integrate with brand-new and established business infrastructures. This can make it easier for an online store to connect its website to a wide range of third-party services.
Blockchain has the potential to streamline several commercial procedures, including the uploading of product photos and descriptions, processing of online payments, and keeping track of inventory. As a result, fewer administrative tasks, lower system maintenance costs, and lower demand for IT support staff does realize. Using blockchain technology, online retailers may devote more resources to growing their core business and less to maintaining their online store.
Simplicity of Operation
To transact with a cryptocurrency that operates on the Blockchain is a very smooth and easy process. An individual can open an account for themselves without physically visiting a regulating authority, unlike with conventional currencies. You may do the task without leaving your cozy home using blockchain technology. It’s also worth noting that there are no hidden fees associated with this procedure. Creating an account is free of charge. There is no fee for the digital currency account.
Using standard methods of transaction requires a significant investment of time. For example, money transfers between continents or countries can take several days. Bitcoin-based transfers, however, are instant. Money transfers can complete in a matter of minutes. Most importantly, Bitcoin transactions can process at any time, from any location, and in real time.
Distributed ledger technology (DLT) allows for the maximum possible safety for online databases. Although there were cases when security flaws in smart contract coding resulted in fraud, no cases can substantiate it as the result of a significant Blockchain backbone framework. An online store might lose millions of dollars in sales and face a significant hit to its market share and reputation if they are the target of a data breach. However, businesses can have peace of mind knowing that Blockchain protects the integrity of the entire data structure and thwarts any future data breaches.