Thanks to its numerous promising benefits, blockchain technology is being embraced by different business sectors in the world at a fast pace. More and more businesses are looking to switch to blockchain technology to serve their customers in the best possible way. Ecommerce is one of the sectors that are progressively using blockchain technology to simplify financial transactions.
The distributed ledger used in the blockchain is helpful in resolving the challenges that the eCommerce industry is currently facing. Blockchain technology can do much more than expected for the betterment of e-commerce. This is the reason decentralized eCommerce marketplaces are getting steam among the masses. A decentralized e-commerce marketplace employs blockchain technology to allow buyers and sellers to directly interact and deal with each other without having to rely on a middleman. A decentralized marketplace creates a win-win situation for everyone involved.
Blockchain and E-commence
Both eCommerce and blockchain involve transactions. Blockchain technology makes these transactions faster and safer and allows users to securely store and share digital assets both annually and automatically. It can handle and manage the user activities such as product searches, payment processing, customer care, and product purchases.
Ethereum and Bitcoin are the widely used blockchain technologies in the eCommerce market. Ethereum offers a practical platform for eCommerce sites that want to have their own blockchains. On the other hand, Bitcoin is a cryptocurrency that led to the creation of blockchain technology. Users use it to buy from select online stores and retailers that accept Bitcoin payments.
Benefits of Blockchain in eCommerce
Improved Consumer Privacy – As Artificial Intelligence (AI) works to improve the online shopping experience of users by offering valuable and personalized experiences, blockchain delivers transparency and protects their identities. It doesn’t show users’ data, names, addresses, and other personal information. However, it stores transactional data on a centralized ledger to offer more visibility.
Cost Reduction – Blockchain-based eCommerce businesses can easily combine payment processing, inventory management, product images, and descriptions with other business undertakings. They spend less on hiring an IT support team to maintain the systems. Digital currencies such as Bitcoin cut back the fees that banking institutes charge on enabling transactions.
Super-Fast Transactions – The blockchain-enabled e-commerce platforms allow people to make fast payments. They don’t have to wait for long hours to make the payments. Unlike traditional payment processing systems that require multiple steps, blockchain technology simplifies the transaction processing on a single network. This removes the need for any middlemen and processes more transactions in a few seconds without any fees.
Warranties and Receipts – Tracking warranties and receipts is one of the biggest challenges e-commerce businesses are currently facing. Blockchain serves as a real time transaction ledger, adding and storing each warranty and receipt as a block, which can be provided anytime when required. Blockchain removes third party meddling while simplifying most commerce systems at present. It is also faster and much cheaper, making it the best choice for retailers.