The eCommerce market has been growing at an unprecedented rate. In the past few years, the market has almost quadrupled and is poised to reach the 6.45 trillion revenue goal by 2023. More and more people are getting onboard to digital shopping, and they are all looking for ways to make it better.
So, how can we make e-commerce better? The answer lies in blockchain technology.
The e-commerce industry can benefit tremendously from the integration of blockchain. Not just as a way of making payments convenient and secure, but revolutionising the whole e-commerce supply chain process and creating transparency in transactions, blockchain can effectively change the way e-commerce industry works.
Here are some of the top ways blockchain can improve eCommerce
A Decentralized Way of Shopping
Decentralization is one of the core features of blockchain. In fact, one of the main reasons why blockchain was created by its founder is to boost a decentralized economy. The eCommerce industry, like many other niches, can benefit significantly from decentralization.
For one, blockchain will bring transparency in e-commerce operations, giving customers more control and access to the process and ability to differentiate good product/service from the bad. Second, it will help streamline the entire supply chain process, create more trust, improve tracking, reduce cost and optimize the overall e-commerce inventory management.
Newer, Better Payment System
Blockchain was originally created as a global finance system that makes digital payments faster, more secure and affordable. The same benefits can be levied by online shopping platforms with the integration of blockchain-based payment systems.
For instance, the Libra Ecosystem is an eCommerce-focused digital payment system based on blockchain. It allows e-commerce platforms to allow their customers to pay in digital currencies like ETH.
Digital payments involving cryptocurrencies are faster, private, transparent, affordable and free of middlemen. Unlike traditional payments, you don’t have to trust a middleman or third-party like a bank with your personal/financial details in order to make a payment.
One of the things that blockchain is famous for is its impregnable, highly secure architecture. Information on a blockchain is stored in a decentralized ledger managed by distributed nodes. All the information in the blockchain is transparent and publicly available, which makes it easy to verify in case of a dispute. However, it’s nearly impossible to alter or change the data once it’s stored in the blockchain, which makes it highly secure against attacks like online theft.
While the users are not required to provide their personal data in order to transact in a blockchain, all their information is kept in highly secured distributed servers. Users on a blockchain e-commerce website can make payments without having to reveal their identities to a third-party or middleman like a bank.
No Fraudulent Activities
Another major benefit of the blockchain e-commerce system is transparency in reviews and offers, which will help the industry combat fake reviews shared by fraud parties.
The trend of fake reviews is very common in the online shopping industry. Users/customers are therefore never sure if they can believe the reviews shared online. Many websites and portals even have reviews posted by bots or fake customers. Blockchain will bring transparency in reviews and allow a customer to check the origin of a review and whether it belongs to an actual customer or not.
The scope of growth is immense with blockchain in the eCommerce industry. And with projects like the Libra Ecosystem out there, it’s easier than ever before for both the customers and online merchants to avail these benefits of blockchain payments for e-commerce transactions.