Is Blockchain The Latest Revolution in the E-Commerce Industry
June 29, 2020
Blockchain technology generated a lot of news this past year. Statista report suggests that global blockchain technology market revenues will be expected to reach over 39 billion U.S. dollars in size by 2025. It seems like every year there's another headline touting an upcoming revolution with this technology with long term prospects.
Why Is Blockchain The Latest Revolution In E-commerce?
Blockchain technology has become the talk of the town, a revolution. This development is opening up the way for increasing the security of payment transactions to make better experiences for consumers all over the world. The technology is set to change the global e-commerce landscape, it will be more productive, more useful, and more secure to store data in a digital form that can be reconciled from time to time.
Let's take a look at some of the benefits:
Authenticity in Payment Transactions
Image Source: mageworx
Over the years, a shift towards Blockchain-based currencies is becoming more and more apparent. According to a report shared by Statista, there is a rise of an average of 704,720 daily in cryptocurrency Ethereum transactions in the third quarter of 2019.
The primary reason why e-commerce businesses prefer using cryptocurrency payments is because of its decentralized nature and security. In such payment transactions, there is no central authority or people involved in a transaction that can control the operations. Also, the value of cryptocurrency does not get impacted by factors like the economy, politics of a country.
Moreover, Blockchain-based payment transactions and currencies are safe and comfortable to use. There is no need to visit a regulatory authority to create an account and everything can be done at home. Additionally, there is no need to pay any charges for opening an account for a virtual currency wallet.
Automates Supply Chain & Logistics
Image Source: e-zigurat
The supply chain is the most important part of an e-commerce business. Most e-commerce businesses are having difficulty in monitoring their products supplies and centralizing the product database. Blockchain technology automates the supply chain and allows e-commerce businesses to manage their inventory more efficiently. The technology completely eliminates the need to invest in other resources and tools to track and monitor supply chain stocks.
We at Syncrasy tech design blockchain-based tracking solution with the help of a team of Blockchain developers, researchers, and strategic planners that provide efforts on all steps in designing the blockchain-based supply chain solution.
When it’s about the supply chain process, the main concern for e-commerce businesses is fraudulent practices or hacking. The blockchain-based solution eliminates the middleman from the supply chain process and helps get rid of hacking risks. Hence, tracking and monitoring of the supply chain become easier as the product information can be accessed through RF identification and embedded sensors. Additionally, the removal of the middleman also helps in the reduction of the overall costs.
Cost Reduction for Retailers and Consumers
Blockchain for e-commerce automatically improves the supply chain process, reduces costs, and ensures the security of transactions. The elimination of intermediaries also reduces the risks of fraudulent activities, product duplication, and further improving the security of payments processes.
E-commerce retailers can make profits by taking a cut of the total investment in all these processes. When more players are involved in the payment network the cost to the consumer increases significantly. By using Blockchain technology, there is direct communication between buyers and sellers that will eliminate the needs of a middleman. It improves customer outreach and also reduces the cost for consumers. The elimination of intermediaries also benefits e-commerce retailers in the reduction of the cost paid to additional parties.
Guarantees Genuine Quality Product Reviews
Image Source: semanticscholar.org
With blockchain technology, you can determine fake product reviews that are prevalent in e-commerce businesses. Fake reviews impact the reputation of a company while and also the sale of online products relies on the legitimacy of its reviews. This is why online e-commerce businesses have concerns regarding the product service reviews found on the web. Here, using blockchain technology to verify the reviews of your products and services can be helpful.
By deploying a blockchain solution can help identify and remove fake reviews. The blockchain technology stores data in blocks that need to be verified across a network of computers before it can be added to the chain. The main benefit is it cannot be altered. Hence, this blockchain technology helps identify fake reviews and allows business owners to remove these fake reviews without notifying customers
Ensure a Secure Platform for Sellers and Buyers
Blockchain technology today is seen as one of the most secure platforms to use for e-commerce businesses. The Distributed Ledger Technology or DLT offers a more secure platform for online payments that makes it ideal to use for eCommerce transactions. By implementing this technology, you will see that there has been almost zero reporting of security breaches in your e-commerce networks.
Another significant benefit of blockchain or eCommerce businesses is that virtual currencies don’t rely on identifiable information. Bitcoin currency works like cash and doesn’t require a customer to reveal its sensitive data. In fact, the customer himself authorizes a transaction from his/her own “wallet” of virtual currency. The concern of cyber-attacks and data theft has increased in recent years, there is a risk of losing your customer’s data. Deploying blockchain is the right solution to get rid of these challenges.
Well! The time has come to implement this blockchain technology to e-commerce businesses. Adoption of blockchain technology in e-commerce could make you trillions of dollars. This year and beyond, the technology will heavily benefit the way global e-commerce businesses deal each day by giving them a path to reduce overall costs and improving the business process.
The reduction in overall business costs will help your e-commerce businesses to flourish and to grow and join other e-commerce activities. And you will no longer be left uncompetitive from joining global platforms like Amazon.
Please let us know your thoughts about the use of blockchain in e-commerce below! We Syncrasy Tech, a blockchain development company want to hear from you more about your business concerns. We can provide you help in building blockchain-based solutions with the help of expert developers. Follow us on Twitter in order to receive notifications on our newest postings where we discuss the power of blockchain in global e-commerce industries!