Adopting Blockchain for eCommerce is the Next Sane Step to Take
As the eCommerce sector has been taking notice for the past couple of years, blockchain technology is going to play a key role in the global economy shortly. Blockchain unlocks a new set of opportunities to the eCommerce industry like never before with unmatched potential.
By eliminating the middlemen operation and streamlining the business operation, blockchain technology has reduced the complexities of eCommerce business. This article will illustrate why adapting to blockchain technology would be a sensible step for the eCommerce industry.
What is Blockchain Technology? & How Does It Work?
Before diving into the core, let’s brush up with the basics of blockchain technology. Blockchain is one of the buzzwords in every business face in today’s digital era. It is the newest technology that simply secures and stores the transaction record in an online ledger that a business is involved in. This helps business leaders to keep track of all those transactions they made for their business operation.
Now, let us briefly discuss how it works.
As mentioned earlier, blockchain is an online ledger that stores individual transaction records in blocks and keeps those by linking together. The transaction records are stored in the chain of blocks structure which is known as a database.
The database containing the chain of transaction record blocks is shared across the systems connected within a network. A single computer does not control the online ledger with this technology, instead, all systems connected within the network can view the blocks. Blockchain technology contains the complete transaction history and performs various validations & checkups to ensure transactions are genuine.
Well, this points out once a transaction record enters into this technology, record deleting or data manipulation is not possible.
Ecommerce businesses have a huge number of consumers, product inventories. Also, it has numerous transaction records than an offline business. Maintaining those transaction data with proper storage would be a daunting and tedious task for humans. Well, implementing this technology on eCommerce would clear all those above-mentioned hassles.
Blockchain technology in eCommerce makes business transactions safer and faster, this creates a positive impact on business growth. Transaction records are stored in form of blocks. Blocks are stored in a chain-like structure by linking with others. The potential of this awesome technology will unleash the true side of the eCommerce industry.
Blockchain Technology offers a complete and secure solution for all kinds of cyber threats for eCommerce businesses. In addition, the technology offers numerous benefits to both online buyers and virtual retailers, along with a seamless inventory management operation.
Take a look at how this technology helps the eCommerce Industry to unleash its full potential.
1. Increases Operational Efficiency
Blockchain is the newest technology that streamlines business operations and drives more operational efficiency through its decentralized business model. It regulates the logistics and payment intermediaries; by offering full control on all transactions to the business leaders.
Besides, this futuristic tech provides seamless integration with various management systems and empowers the business operation by streamlining overall workflows. The features and excellences of this tech provide unedited transaction records to all blocks and enable consumers to access the complete transaction information right from its origin.
2. Highly Secured & Transparent Payment Solution
The eCommerce industry already has vast online payment solutions. But unlike all others, this blockchain technology brings complete transparency to payments. A transparent transaction gives consumers more trust over the brand. This helps brands to build brand loyalty among them.
The significance of this tech is it stores the complete transaction records in a shared ledger. This means no one can alter or delete or manipulate the stored data in that shared ledger. It is open to all systems connected in a single network to view.
Blockchain technology inherits the operations of various systems like inventory, payment processing, and so. This allows online retailers to save money from buying and maintaining those systems separately.
Apart from that, this tech supports crypto payments. Handling cryptocurrencies will eliminate the transaction fees set by banks and other financial institutes worldwide.
4. Highly Reliable & Complies Data Security Regulations
Unlike the other payment processing systems, where consumers’ data is stored in centralized cloud storage and possesses a huge risk of falling prey to hackers. This blockchain tech offers a decentralized ecosystem for data storing and hackers or intruders can't steal consumers’ data.
This tech facilitates business in all ways and compliance with the data security regulations. Complying with data security regulations is important for online businesses these days to follow.
5. Business Expansion
For every online business, their ultimate goal is to attract overseas target audiences and to expand their business overseas. The main obstacle brands face in the overseas expansion will be the increase in product cost due to transaction fees imposed by banking or financial middlemen.
The usage of cryptocurrencies in blockchain technology enables overseas potential consumers to shop by eliminating their banking middle man. This means overseas consumers can save more by buying products from brands supporting this futuristic beneficial technology.
6. Promotes Rewards & Referral Programs
Introducing various rewards and referral programs will promote business promotional activity without any cost through ‘Word of Mouth’ communication by potential buyers. This blockchain system enables brands to introduce more rewards and referral programs by joining hands with other brands.
This allows consumers to avail more options to redeem their reward points across sites and force them to involve referral programs. In addition, by using this tech brands can even pay their influencers and consumers through cryptocurrency.
Ecommerce becomes the store front-end for many businesses around the world. Blockchain technology facilitates eCommerce with all the activities involved in customer handling, product sales, and payments. The potential of blockchain has forced eCommerce businesses to consider it as an integral part of their financial ecosystem.
Adapting to this futuristic technology will take eCommerce to the next level!