Technology has repeatedly proven that it is a man’s best friend by constantly keeps evolving to solve our everyday problems. We now have eCommerce that allows us to ship from the comfort of our homes and internet banking solutions, mobile wallets, mobile payment gateway apps, and the involvement of Fintech firms in the banking process too.
However, amidst all that, highly safe and secure data or information sharing is one of the most crucial aspects for individuals and companies alike. Unfortunately, there are multiple flaws in our current procedures and processes that may enable fraudsters to easily delete or modify the information in between the process.
Using Blockchain in eCommerce prevents hackers from invading your bank accounts, stores your valuable data, secures all your transactions, uses it safely only when required, and eliminates any possibility of data deletion or modification. Keep reading to find out the different ways Blockchain is changing the eCommerce industry.
5 Ways Blockchain Technology Is Revolutionizing the Ecommerce Industry
From retail to the financial institutions, healthcare, and the eCommerce industry, Blockchain can now modify the way we carry out businesses by offering you a reliable and trustworthy system for information exchange.
Here are 5 ways the Blockchain transforms the conventional eCommerce business into a more contemporary and secure approach.
- Revamping payments methods
Blockchain technology observed its initial implementation in currencies powered by its technology, such as Ripple, Bitcoin, and Ethereum. Currently, digital currencies are being used as a substitute for traditional currencies.
This drastic shift is possible because they’re decentralized and due to the relative ease and convenience of implementation. Bitcoin and several other cryptocurrencies offer users a vast array of benefits for merchants and customers. Some of these advantages include:
Blockchain isn’t governed by any central corporation, which fundamentally implies that only the sellers and buyers can control its operations. Hence, you can rest assured no third party can manipulate or look over your transactions.
Blockchain currencies don’t inflate and cannot be devalued by the government or banks, as tends to happen with traditional currencies. For example, if a particular country’s economy collapsed due to some reason today, the currency is bound to suffer a lot.
However, since geopolitics doesn’t affect its operations, bitcoins will not be affected by an economic downturn.
Ease of use
Blockchain-based currencies are easy and comfortable to use. They don’t require you to visit any governing authority to create an account as conventional currencies do. You can accomplish it all from the convenience and comfort of your home.
Moreover, you won’t be levied any charges to create an account, as a digital currency wallet costs nothing.
Digital currencies based on blockchain technology don’t expose the transacting parties’ identities. However, these transactions are quite transparent as centralized ledgers record the details and provide visibility to trades.
Freedom of transactions
There’s no regulating body that dominates how an individual utilizes their bitcoin. Regular modes of payment are frequently imposed with multiple limits based sometimes on the geographical location and the amount.
On the contrary, currencies associated with blockchain technology provide complete freedom to users, enabling them to carry out all their transactions without any restrictions on the spending limit.
A blockchain-based currency is entirely secure to handle and carry out transactions. Thanks to peer-to-peer technology, it is practically impossible to conduct fraud or hack into the process, making cryptocurrency one of the safest and most secure transaction modes.
Sending money to someone across the other side of the world using traditional means can take many days.
On the contrary, bitcoin transfers only require a few minutes for the other person to receive the money. Moreover, you can carry out transactions whenever you want, and it will happen instantly.
- Providing a high level of security
Today, Blockchain happens to be the safest platform. The Distributed Ledger Technology (DLT), which Blockchain takes great pride in, provides brilliant security for online database platforms that make it ideal for eCommerce implementation.
Besides, an almost insignificant number of security breaches in the blockchain-administered networks have been reported.
Another essential advantage that eCommerce businesses can take from using blockchain technology is their currencies don’t display personally identifiable information.
Digital currencies such as Bitcoin operate like cash, meaning customers aren’t required to disclose sensitive information. The customers themselves authorize payments from their digital wallet to the recipient’s wallet.
A randomly-generated distinct identifier is the unique data piece tied to each individual’s wallet. Since there’s been a tenfold increase in data theft and the number of cyber-attacks, customers are at an inevitable risk of losing their valuable data.
Hence, implementing blockchain technology is an important way to overcome these difficulties.
- More efficient supply chain management
Supply chain management (SCM) is a significantly demanding concern that every online business is tarnished with.
Since the supply chain is a fundamental constituent of any online business, implementing blockchain technology in this sector will potentially solve an array of problems.
It can be broadly leveraged to deal with prevalent supply chain concerns such as keeping track of products as a better and less corruptible alternative to the centralized database and record keeping. Some other use cases are as follows:
There’s an automatic deduction in additional costs incurred by the system. Blockchain technology is used to amp up the supply chain’s admin processes. The removal of intermediaries further eliminates the risk of product duplicity and scams while saving money simultaneously.
Instead of relying on Electronic Data Interchange (EDI), suppliers and customers can further process payments within the supply chain by using their digital currencies.
You can access product information using embedded sensors and RFID tags. Blockchain technology can trace the timeline of a product straight from its inception to where it’s present.
Apart from this, such accurate provenance tracking can be leveraged to detect irregularities in any supply chain segment.
The introduction of Blockchain has made it significantly easier to manage inventory. Adopting this technology in inventory management allows retailers to prevent the high costs of hiring new personnel.
- A more visible eCommerce marketplace
Recently, there’s been a significant backlash that the giant retailers have been experiencing after the charges for lack of transparency. It is a massive concern for the existing eCommerce platforms.
For instance, Amazon was in the headlines for blocking and even disabling a seller’s page without justification or explanation.
Hence, applying this technology in the virtual marketplace helps create a decentralized setting where any mishaps or wrongdoings on the seller or business’s part can be efficiently supervised.
A transparent eCommerce marketplace also allows transactions to be conducted effortlessly and efficiently.
- Spawning customized offers and authentic reviews
Every company’s reputation relies on the legitimacy of its reviews, and the same is the case with eCommerce businesses. Undoubtedly, fake reviews can ruin any brand’s reputation. Moreover, even a single fake review tends to promote your rival on the search engine results. People will simply look for the next best alternative on the search result and click on it.
Luckily, if you implement blockchain technology in your online website development, you can easily verify reviews for your products and services.
As each block calls for verification across a network before it’s included in the chain, you can limit the number of fake reviews. Moreover, blockchain technology can be used for marketing your eCommerce business and other promotional activities.
For instance, you can add a feature that grants reward points to customers upon reaching a certain spending amount. Furthermore, you can offer your customers enticing discounts and customized offers to encourage them to spend some more.
We are Owlab, a custom software development company that initially started business in Ukraine but has opened up a second development center in Estonia.
We take great pride in having niche expertise in fintech, healthcare, retail, blockchain technology, etc., and offering excellent application development services. We’re excited to take up more upcoming projects and deliver you unparalleled custom software solutions.
Do you have a project that you would like us to handle for you? Then just contact us at Owlab and let our team fulfill all your requirements.