by Nov 20, 2018 | Digital Transformation|
Cryptocurrencies have been a hype all through 2017 and continued to dominate our press in 2018. People scared away, but the underlying technology used blockchain has piqued the interest of people beyond investors. How can e-commerce businesses benefit from this technology and what could it be useful for?
Just a small reminder about the hype of Bitcoin. The Bitcoin had a value of 100$ in 2013 while at the end of 2017 it was traded for 17,900 $. The outlook for Blockchain technology market projection is rosing. Year to year a two digits growth is predicted and a volume of 2,312 billion dollar by 2021.
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Bitcoin is set to change the world’s financial landscape and it’s all thanks to blockchain technology. What if we didn’t rely on central servers, but instead on our own computers? What if all internet transactions were transparent and fixed? E-commerce businesses, especially, will enjoy the rise of the blockchain. The technology will keep you ahead of the competition while endearing consumers to your brand.
Think of blocks like a records book. Another block (page) gets added to the chain (book) every time something happens. The collection of blocks forms the blockchain (book). For Bitcoin, the blockchain is a digital ledger. Your Bitcoin is really an address (number) on the chain.
A key (password) grants access to that address and thus your cryptocurrency. After every transaction, another block gets added. Each new block details each new transaction. The entire chain is your ledger.
The P2P technology makes blockchain a secure, anonymous way to track information.
Blockchain & Ecommerce
Blockchain gives traditional e-commerce security, transparency, and cost-cutting. Not only does blockchain improve your business, but it also keeps your customers safe. Instead of searching for new business models, we can improve what we have.
1. Consumer Privacy
Consumer interactions become transparent. Blockchain provides a real-time transaction ledger. When someone makes a purchase their information becomes part of the chain.
Instead of storing customers’ names, user data, and IP address, consumers are just an address on the blockchain. Each consumer gets their own address that relays non-identifying information.
2. Supply Chain Communication
Blockchain technology also works as a supply chain ledger. The P2P technology allows your company to track supply chain records, from inventory to payments. to product origin.
Your e-commerce store can use blockchain much like the mining industry. The technology will help track your own supply lines from the product manufacturing process to your warehouse.
You not only ensure your product arrives on time, but also that you’re getting what you ordered.
3. Reducing Costs
Blockchain reduces costs for many of the same reasons it excels as a supply chain ledger. In fact, the reduced costs come from added security, transparency, and communication.
Your business won’t need staff to track your supply chain. thanks to real-time ledger updates.
You won’t need staff to monitor and update information, product manufacturing times, shipments, and more. Likewise, you won’t need staff to test your products to ensure they’re genuine.
A blockchain-based payment ledger places payments directly on the blockchain. Without a middleman, your e-commerce store doesn’t pay transaction fees.
Every transaction happens in the chain. Third-party companies are already offering solutions to build e-commerce businesses their own blockchain.
Your business would then exist as an address on the chain, as would consumers using your e-commerce store. P2P transactions would happen on the blockchain network, without any middleman.
5. Receipts and Warranties
But both receipts and warranties are difficult for e-commerce businesses to track.
With blockchain, warranty and receipt information gets added to each “block” and stored on the chain. Again. the blockchain acts as a real-time transaction ledger.
Your company can easily provide receipt or warranty information when customers ask. Easy access to receipt and warranty information protects against consumers trying to return or fix out of warranty items.
Looking Towards the Future
Building your own blockchain brings an unrivaled blend of safety. security. transparency. cost savings, and more.
We’ll soon see the e-commerce world shift. Blockchain’s progress will soon force companies to implement blockchain into their e-commerce business.
While it’s not necessary yet, utilizing blockchain will give you a competitive advantage. So we can for sure say, Blockchain for E-Commerce Businesses can turn out as a dream team like Siegfried and Roy, Sony and Tubs or Laurel and Hardy.