Technology has continuously been evolving and opportunities have been created for business owners and convenience has been reimagined for consumers. Mobile apps for e-commerce businesses started to emerge until, eventually, financial technology and mobile wallets became the norm.
Today, blockchain technology is monitoring more and more transactions. The latest data suggests that nearly 350,000 Bitcoin transactions are confirmed every day. This development is a step further into increasing the security of transactions to make way for better experiences for consumers all over the world. It is set to change the global financial landscape, and e-commerce businesses, especially, are going to benefit from the rise of Blockchain.
More Effective Supply Chain Tracking and Monitoring
The supply chain is one of the most critical aspects of an e-commerce business. Online business owners often have difficulty monitoring products, managing supplies, and even centralizing the database. Blockchain technology makes these tasks easier to achieve.
Blockchain allows e-commerce businesses to manage their inventory more efficiently. The technology eliminates the necessity for businesses to invest in other resources to track and monitor stocks.
One such tracking solution provider is WOWTRACE. They are a team of Blockchain developers, researchers, marketers, and strategic planners that provides real-time product information to consumers on all steps in the supply chain process. In Vietnam, they help make the tracking of agricultural goods more transparent for the sustainability of their agriculture.
When you are looking at a supply chain, one of the main concerns is getting hacked or falling victim to fraudulent practices. However, by eliminating the middleman from the supply chain, Blockchain technology gets rid of these risks. Keeping a record and tracking provenance becomes easier since the product information can be accessed through radio-frequency identification tags and embedded sensors. Keeping track of a product from its inception to where it is at present can be traced with Blockchain technology. The removal of the middleman also leads to a reduction in the overall costs.
Promotion of Transparency in the Marketplace
Transparency in the marketplace gives consumers a sense of security. In the past, one of the main concerns about e-commerce businesses was the lack of transparency. This issue was addressed with the development of blockchain. Since technology allows people to know of even the slightest changes in a transaction, everyone becomes aware and feels secure. It would establish a decentralized environment in the e-commerce market where any wrongdoing on the part of a merchant can be monitored. Retail giants such as Walmart and Unilever have recently declared Blockchain projects, showing their intent to gain a foothold in Blockchain-based offerings.
A More Efficient Makeover for Payments
Over the years, people have progressively started using cryptocurrency as an alternative to the traditional currency. A massive shift towards virtual currency is becoming more and more apparent, as seen with the rise of Bitcoin and other Blockchain-based currencies. According to Statista, cryptocurrency Ethereum saw an average of 704,720 transactions daily in the third quarter of 2019.
One of the primary reasons why people prefer using cryptocurrency is because of the decentralized nature of Blockchain technology. There is no central authority, which means that only the people involved in a transaction can control the operations. The value of Blockchain also does not depend on factors like the politics or the economy of a country.
Moreover, Blockchain-based currencies are much more comfortable to use. They eliminate the need to visit a regulatory authority to create an account since everything can be done at home. Additionally, there are no charges to opening an account as a virtual currency wallet is absolutely free.
A Secure Platform for E-commerce Business
Every form of security is crucial in the e-commerce business industry. The Blockchain-based e-commerce platform provides comprehensive security, including data and wallet protection.
Data security is especially vital since some businesses maintain customer information such as their address, phone number, and other details. With Blockchain technology, its decentralized nature makes it extremely difficult for hackers to intrude on personal data. They would have to hack into all the nodes on a server, which is virtually impossible. Additionally, Blockchain-based currencies do require consumers to expose sensitive data. The only piece of data tied to each user’s wallet is a randomly-generated unique identifier.
Product Reviews Stay Genuine
Fake product reviews are prevalent in plenty of online businesses. Many consumers tend to fall for these false reviews and end up being disappointed with the purchase. However, this is not the case with Blockchain. This technology helps verify reviews and prohibits business owners from erasing history without notifying customers.
Blockchain keeps data in blocks that are added to a chain of similar information blocks. Every block requires verification from across a network of computers before it can be added to the chain, which makes it very hard to alter.
Reduced Costs for Retailers and Consumers
Merchants make a significant portion of their profits by taking a cut of the total payment in e-commerce transactions. The cost to the consumer increases when more players are involved in the payment network. With Blockchain, there is direct contact between buyers and sellers since the middleman is eliminated. It also streamlines customer outreach and ultimately reduces the cost for consumers. The independence from intermediaries also benefits retailers as a result of a decrease in the number of fees charged to additional parties.
This technology is already being considered as one of the main drivers to achieve a substantial cost saving. According to a Santander FinTech study, distributed ledger technology could reduce annual financial services infrastructure cost between $15 billion and $20 billion by 2022.
What to Expect from Blockchain Technology in 2020
2019 was a spectacular year for Blockchain technology and it is expected to only get better in 2020. Forbes has set forth few predictions for the future of the technology and they are very promising. These include the launch of Facebook’s payment network and the continued progression of Ethereum 2.0.
Blockchain technology is poised to revolutionize the e-commerce business industry. It offers an unparalleled blend of security, transparency, and cost-efficiency. Business owners who are looking to expand their ventures should embrace this development and redefine the way they work. Aside from being faster and considerably cheaper, some of the competitive advantages this technology offers include total control on the supply chain for improved efficiency and amped-up pricing for increased profit. Soon enough, the progress and apparent upsides of Blockchain should force more companies to integrate the technology into their businesses.