In the present times, indeed technologies are changing every industry in a better way. Among all these advanced technologies, one technology has been on the center stage for the past few years. Here, we are talking about Blockchain Technology. If you are thinking of implementing Blockchain in your local business dealings, consider reaching out to IT Support Vancouver.
In the year 2020, things have changed for the betterment of humankind. E-commerce is among the sectors increasingly using blockchain technologies to facilitate financial transactions. This technology has become the backbone of almost all the eCommerce stores present over the web. There are some apps that you might have used a day before but you might not have realized that blockchain technology was integrated with them. Some popular e-commerce stores that use blockchain technology are Shopify, Overstock, and Amazon. These stores use the technology to help them track the movement of their products, keep track of their inventory, and ensure that their payments are processed correctly.
What Is Blockchain Technology?
A Blockchain records information that makes it impossible or difficult for the system to be changed, hacked, or manipulated. Blockchains are distributed ledgers that duplicate and distribute transactions across the network of computers participating in the blockchain.
Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the “chain,” in a network connected through peer-to-peer nodes. Typically, this storage is referred to as a ‘digital ledger.’
Blockchain technology uses a decentralized system in which all participants are generally known by everyone else. This has led to using blockchain technology to record financial transactions for many industries. The benefits of blockchain technology include a reduction in transaction costs and an increase in efficiency. The financial sector is one of the first industries to adopt blockchain technology.
In simpler words, the digital ledger is like a Google spreadsheet shared among numerous computers in a network, in which the transactional records are stored based on actual purchases. The fascinating angle is that anybody can see the data, but they can’t corrupt it.
What is Blockchain in Ecommerce?
Ecommerce globally impacts 19% of total retail and grows its space annually. It is a very prominent industry that relies on transactions on a huge scale and managing such a massive volume of data. It is essential to ensure the security of the number of users. Your top priority is keeping your visitors’ personal data and information secure. Your top concern is providing a reliable platform where your customers can trust and share their personal data without fear of losing their confidential details. Placing orders by customers, tracking their details, managing inventory, delivering the order in the expected duration, or refunding the amount are some of the transactions that need to be securely maintained in a copy or a ledger. It is impossible to maintain the data manually. Hence managing a trustworthy and effective transaction ledger is of supreme importance.
Blockchain-based eCommerce platforms can potentially improve eCommerce, offering a distributed ledger technology that helps prevent fraudulent activity. With its decentralization concept and transparent features, this technology can be applied to the eCommerce industry to overcome these technical and financial barriers. This revolutionary behind bitcoin can change the way eCommerce processes are done. Any place where we need accountability and ledgers are potential areas; blockchain is a perfect solution. Blockchain can be used to open a world of new opportunities. It transfers value to every step, which helps make payments.
How Blockchain will Revolutionize Ecommerce
E-commerce has been a significant driver of innovation in recent years. Online shopping is proliferating and has become a part of our everyday lives. However, it still has some challenges. Consumers have to wait for days or even weeks to receive their purchases. It also takes a lot of time to process credit card payments. The introduction of blockchain technology could change the way e-commerce works. It could help online retailers provide better customer services by creating an ecosystem where consumers and merchants can interact without intermediaries.
Here are other opportunities that blockchain technologies will create in the e-commerce market.
Smart Contracts
Smart contracts act as computer programs that automate certain tasks based on preset rules. Since blockchains are instrumental in storing digital information, smart contracts can also be used to automate e-commerce-related processes. They can grow an e-commerce enterprise by cutting down on costs. Smart contracts can also facilitate inventory management. This means that online retailers can manage the control of inventory items.
Loyalty Programs and Personal Offers
Blockchain technologies can make it easy for e-commerce businesses to issue redeemable reward points to their clients whenever they hit certain spending thresholds. Online retailers can make their loyalty program points redeemable across different e-commerce sites. Thanks to blockchain technology, clients can also benefit from personalized offers and discounts that the retailers offer. The best e-commerce companies in the world use this loyalty program to attract more customers and expand their product reach.
Easy to Access Receipts and Warranties
Blockchain technology also provides online retailers and their customers the convenience of storing receipts and warranties of products. Paper receipts are a big issue when shopping online. At times, buyers also experience frustration when trying to prove the warranty coverage of certain purchased products. It’s all because of blockchains; buyers and retailers can q quickly access receipts and warranty data and validate proof of ownership.
Generating Genuine Reviews
Online store operators can use blockchain to verify the reviews on their products or services. There are growing concerns about the authenticity of most product and service reviews found on the Internet. The reputation of an enterprise depends on how legitimate its reviews appear. Therefore, e-commerce sites should use blockchain technology in the future.
Paying Content Creators
E-commerce platforms have already begun experimenting with blockchain technology, and many believe it is the future of e-commerce. Blockchain technology is secure, transparent, and fast. It can help improve customer experience, eliminate fraud, and reduce costs. These benefits make it an ideal tool for online retailers. Content creators play a crucial role in developing e-commerce sites, and their efforts shouldn’t go unnoticed. One of the exciting things that blockchain technology has in store for e-commerce sites in the future involves paying content creators. Content curators who create and post interesting and engaging content will be able to earn digital tokens each time they do so, courtesy of blockchain technology. Online retailers will use digital wallets to pay them. Digital wallets support cryptocurrencies such as Bitcoin and allow users to convert the digital tokens to their preferred currencies.
Conclusion
Many merchandisers are discovering e-commerce as a viable way to start and maintain a storefront for their business endeavors. Blockchains are acting as the backbone of online sales and payments. Blockchain technology seeks to capture the power of financial institutions to allow people to have control over their transactions.
Post courtesy: Andrew Dalman, President at ActiveCo Technology Management.
