Highly secure and safe information or data sharing is one of the most vital aspects for any individual or company. Unfortunately, our current data-sharing processes and procedures have many flaws that might allow fraudsters to modify or delete data in between the process. 

Blockchain technology is the best possible solution for information sharing on the internet, which eliminates any possibility of data modification or deletion. Though the technology is in its early days, the blockchain is proliferating and will conquer the world in the upcoming years undoubtedly. Therefore, blockchain can be a powerful tool to manage transactions and transparent data sharing among stakeholders in almost all sectors. 

From retail to eCommerce, financial institutions, and the healthcare industry, blockchain can change how we conduct businesses by providing a trusted system for information exchange. 

This blog post focuses on various impacts of blockchain on the eCommerce industry and how it will help revolutionize the traditional eCommerce business to the modern and secured approach.

What is blockchain technology? What issues does it solve?

First introduced in 2008, blockchain has gained worldwide popularity in recent years and has set a benchmark by offering a secure transaction platform to a group of people who can use it for information exchange and data sharing. 

It is a book with a list of transactions, and each page of the book is called block and thus the name- Blockchain. 

However, people still don’t know much about blockchain technology and how it can change a life. 

By definition, blockchain is a decentralized and secure database built over a network and stores data and relays information in blocks. All the stakeholders in the group remain anonymous.

Source:https://www.ledger.com/academy/blockchain/what-is-blockchain

The blockchain records data in a new block in a linear manner and from all previous blocks. Here, data is accurately encrypted with the help of different cryptographic principles and security algorithms. 

Now, before a particular stakeholder adds some data to a blockchain, the transaction must pass validation by miners. Here, miners will enjoy some reward in terms of money, such as cryptocurrencies.  

Here comes the leading beauty of blockchain technology. The network is decentralized, and no single entity controls the data within a blockchain architecture. All transactions are immutable and transparent, and all stakeholders can see them. You cannot change, or takedown, or hide any transaction once someone does it. 

Now the million-dollar question is,

 What issues the blockchain technology tackles primarily?

1. Intermediaries

Blockchain does not allow any intermediaries to intervene in the system. It is free of intermediaries, and hence, it brings accuracy and precision to the table.

2. Transparency

In addition to that, data once recorded in the blockchain ledger is immutable and unchangeable, making the whole transaction transparent and accurate. Everyone in the system can see the transaction, who edited it, and when.

3. Decentralization

Blockchain technology is based on the principle of decentralization. Here, no single entity controls the system, and the centralization, which leads to inaccuracies and other issues, is no longer a threat to the system.

4. Trust

All stakeholders can see a transaction done on the ledger, and hence it is accurate and secure. In addition, it develops trust among stakeholders.

5. Data security

Blockchain technology’s shared data is encrypted and offers superior security against any possible cyber attacks.

6. Accuracy

As discussed earlier, stakeholders know about all transactions, and it invites accuracy in the system.

7. Transactional Freedom

Any stakeholder can add a transaction in the system as a single entity does not control it. Thus, all stakeholders have transactional freedom.  

Blockchain & Ecommerce – Revolutionizing the way of security & payments handling!

Source:https://www.disruptordaily.com/blockchain-use-cases-ecommerce/

So, you want to start your online store and have already hired an eCommerce website development service provider for that, or you are a reputed eCommerce brand in the market. In any case, you need to know how blockchain technology impacts the eCommerce business. 

Most eCommerce businesses face functional or operational issues such as slow transactions, trust, digital data ownership, and policies. Blockchain technology can help an eCommerce business to gain confidence in online payments. With the cryptocurrency in place, you can introduce a secure, accurate, and quick payment method in your business. 

Let’s take the example of Amazon. If you sell your products through Amazon, you know their policies are annoying sometimes. If you are an Amazon retailer, you can send just one follow-up email to your customers, and the customer support from Amazon is not up to the mark. 

With blockchain-driven technology, you will not need any third-party influence for transactions. You can have accurate, faster, and transparent transactions with a complete record stored for future use. 

Impact of Blockchain On global countries

You might ask why some countries still hesitate to allow blockchain technology in their mainstream economy. Well, all fingers are not the same, are they?

Many countries have started seeing the potential in this technology, and some are just lagging for various reasons.

Here, we have to mention Estonia, a country that has openly embraced blockchain technology. For more than ten years, they are testing the benefits of the technology. They use blockchain for their data registries for judicial, legislative, health, cybersecurity, and finance and banking sectors.

Switzerland, Sweden, the United States, and South Korea are other countries receptive to the technology.

However, when we say that countries welcome decentralized database technology, it does not mean that they are open to cryptocurrency usage in their countries. Regulators are drafting regulations for it in many countries.

How is blockchain transforming traditional e-commerce business in 2021?

Now, let’s discuss how blockchain is transforming the typical, traditional eCommerce industry in 2021. stay tuned!

1. Payment methods will get revamped.

• Bitcoin, Etherum, and Ripple are some of the cryptocurrencies available as of now. However, due to their decentralized nature, cryptocurrencies are now making their way to the mainstream ground by replacing traditional currencies. Well, the advantages are also lucrative.
• As the technology is decentralized, only the buyer and seller control the operations. Hence, no third party can manipulate the transactions. No one can devalue or inflate the currencies.
• Furthermore, cryptocurrencies don’t reveal the identities of the parties. However, the transactions are still transparent, and the details are stored in the centralized ledger.
• The party is not answerable to any governing body for their utilization of bitcoins. Banks and other institutions control the number of transactions and spending limits, in the case of traditional transactions. It is not the case with blockchain.
• Cryptocurrencies are easy to use, and you can set up an account at your home without the help of any intermediaries.
• While traditional transactions take up so much time, blockchain-based financial transactions take up a few minutes. Furthermore, unlike banks that are closed at some point in time, bitcoin transactions can be done at any given time.
• As it is a decentralized, secure network, it is difficult to hack the process to conduct fraud.

Experts believe that e-commerce marketplaces will soon start accepting Bitcoin payments. However, you need to hire a website development company to make necessary amendments to the payment methods.

2. Improved Supply Chain Management

Most eCommerce stores face this issue, more or less, of managing their supply chain. However, blockchain might address many pain points of supply chain management, such as recordkeeping, product tracking, and provenance tracking.

Here, RFID tags and embedded sensors make recordkeeping and provenance tracking easy. Also, you can detect anomalies as all details are recorded in the book.

3. Cost Reduction

When you manage the supply chain with the help of blockchain, you will automatically see reduced costs incurred earlier. For example, automation will eliminate intermediaries and reduce fraud and other threats such as product duplication.

4. Inventory Management

Inventory management is the most significant aspect of any eCommerce business. With the help of blockchain technology, store owners can manage their inventories more easily. As a result, they will avoid unnecessary stocking of new products and recruiting new staff when it is not needed. 

5. A more transparent eCommerce marketplace

Transparency is one of the critical aspects of any business. But, unfortunately, big retailers face a lack of transparency, and they have to take stern actions to stop any fraudulent activities or false practices. For example, we have seen how Amazon took action against merchants by disabling their pages without any explanations. 

However, introducing blockchain technology can work positively for you. Due to its decentralized nature, any wrongdoings can be tracked instantly. Also, all stakeholders can see who is doing it. It is a much more sophisticated platform to use to bring transparency to the system. 

Introducing blockchain-based transactions will also facilitate speed and reduction of operational costs. 

6. Secure

Blockchain is the most secure platform out there on whom you can rely.

Say thanks to the Distributed Ledger Technology or DLT for that. It is the best technology to implement in the eCommerce marketplace as it offers highly superior security for online database platforms. In addition, it mitigates security risks and misreporting of glitches to a great extent.

In addition to that, blockchain does not exhibit any party’s identity. It does not ask a consumer to provide their sensitive data. Instead, it authorizes the consumer to transfer funds from his wallet to a recipient without additional information.

In the era where cybercriminals are more advanced and modern, blockchain technology can help you gain your customer’s trust by offering a secure platform to collaborate. Once they trust that you will not lose their data, they will become loyal to you.

7. Spawning genuine reviews and personal offers

We all know how fake reviews can tarnish the image of any brand. Not just that, one fake review also promotes your competitor on the search result as the user will look down to the following search result and click on it. 

Thankfully, with the implementation of blockchain technology in your eCommerce website development, you can verify the reviews for your products or services. 

As each blockchain block requires verification across a network before it is added to the chain, you can curb fake reviews. 

Also, you can use blockchain technology for your store’s marketing and promotional activities. For example, you can add some reward points for your customers when they reach a specific amount of spending. In addition, you can give personal offers and discounts to your customers to encourage them to spend. 

CONCLUSION

Blockchain is all set to be implemented in almost all sectors, including eCommerce. Therefore, they have a significant role in the future to offer secure, reliable, and decentralized transactions for e-commerce consumers. Though it will take time for blockchain to be acceptable in other countries, the benefits will surely entice people across the globe. 

E-commerce businesses will leverage all the benefits that blockchain technology offers to provide a more accessible user experience to their customers while making processes easier, streamlined, and secure. 

If you are looking for website development services for your eCommerce project, you can contact Dark Bears. We offer feature-rich, tailor-made, highly available, and secure eCommerce website development services to serve your business interests.