From the last article, you might learn a lot about blockchain. How it works in general, how it benefits Third-party logistic companies, and how it may change this supply chain sphere. Not only the supply chain area but many other sorts of business, such as eCommerce, which we are going to discuss precisely in this article. Why would online entrepreneurship start to employ blockchain? Why do companies accept blockchain cyber currencies as a way of payment? What benefits do businesses have with such currencies? Let’s find out.
(Picture Unsplash @homajob)
What is Blockchain Technology?
First of all, let us briefly revise what the blockchain system looks like and how it operates. As long as you wish to learn much more about blockchains, you are more than welcome to have a look at the previous article called ”Blockchain technology and the 3PL industry” if you have not yet.
Briefly, a blockchain is a decentralised database that stores data in blocks that are connected to one and another. When new data comes in, the data then spreads into a block of the blockchain one by one, in strict order of the block, until each block contains the data. Everyone in the blockchain has even access to the stored data. This user equality, along with the technology’s transparency and immutability, is some of the reasons companies now implement this system.
Blockchain in eCommerce Industry
Blockchain is one of such technologies that is foreseen to revolutionise and completely change many businesses and markets. No doubt it includes the eCommerce area. Merchandisers and online traders from different parts of the world are now turning to blockchain. This system is especially unique in the eCommerce industry since not a single system is as convenient and secure as blockchain.
Advantages of Blockchain in eCommerce Businesses
eCommerce is the sector of the industry that use blockchain technology to improve financial transactions. Blockchain actually makes these transactions safer and faster while eCommerce activities count on them. Again, when data is stored in blockchains, it is unlikely to be lost or stolen. Likewise, the risk of cyber threats is very low. Apart from it, fast online payments are also available when using blockchain systems. It offers specifically to customers the convenience to do shopping. The days when buyers waited for hours or days to make the payments are finally over, thanks to blockchain.
Another advantage is that along with blockchain’s convenience in use, there comes serious cost reduction. Businesses get to spend less on having systems (inventory management, payment processing, product descriptions, etc.) by combining them all together with blockchains.
In the past, one of the key concerns about eCommerce companies was the lack of transparency. However, now blockchains allow promoting this transparency in the marketplace. It establishes a decentralized environment in the eCommerce market where any misconduct on the part of a merchant can be monitored. Clients also benefit from the transparency – it gives them a sense of security.
Let’s not miss out on another great topic when talking about blockchain technology. Easy to guess – those are cryptocurrencies – the new method of payment that gets more accepted by organizations in a different part of the globe. Over the years, people have gradually started using cryptocurrency as an alternative to traditional money.
You must have heard of Bitcoin. This is the most famous and discussed currency, which led to the establishment of blockchain technology. In accordance with some statistics, roughly 300 000 Bitcoin transactions are confirmed daily – letting alone other cryptocurrencies.
Why do customers now start to prefer cryptocurrencies to ordinary currencies? Well, firstly because it is decentralised (again, thanks to blockchain) – only the people involved in a transaction can control the operations. And secondly, also more importantly, because it is fully independent – not affected by politics or the economy of a country. When a crisis or political dispute comes to a country, its national currency may get weaker. And Bitcoin, in contrast, may not.
Enhancing Trade and Economy in Developing Countries
When it is said that blockchain profits businesses and stimulates economies, not only highly developed European or North American nations are implied. Blockchain tremendously boosts online trade and upgrades the industry in developing Third-world countries. Thanks to blockchain, online retailers can work safely and conveniently with customers from underdeveloped countries of Africa, the Caribbean area, or Southwest Asia. As also consumers from such states use peer-to-peer systems to purchase and pay for their stuff, no middleman is needed.
Summing Everything Up
Blockchain is changing the online trade area and will eventually revolutionise the eCommerce industry. No other ledger and payment technology offer such a blend of security, cost-efficiency, and freedom of transactions. Otherwise, why would hundreds of businesses integrate this technology? Why would even cryptocurrencies be in such great demand of many companies and their clients?
Time goes very quickly. You will not believe your eyes how soon the whole industry will evolve into the area where blockchain technology is no more just a beneficial system, but an unconscious standard practice in every company. Will your business join this “blockchain future”? Will your customers and employees experience all the benefits of blockchain technology?
About Viking Consulting
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Viking Consulting team
Who We Are?
We are Viking Consulting. The specialists within the fields of 3rd party integration and eCommerce software solutions. With 20+ years of experience in eCommerce, 15+ years of experience in development and integration, and 5+ years as a 3PL provider. We are the only contact needed for implementing integration, development, and consulting.
The company is based in Scandinavia and the team extends to even embracing more countries. We serve companies worldwide. Our foundation is based on the values: Be Brave, Be Prepared, Be A Good Merchant, and Keep the Camp In Order. Therefore, we see ourselves as business partners and friends of the clients, employees, companies, networks, and the industry.