Blockchain And E-Commerce: The Ideal Power Couple
The all magical and supreme Blockchain, a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain making it impossible to cheat or hack the system. Since the father of cryptocurrency, Satoshi Nakamoto created the first decentralized blockchain in 2008, we have seen the blockchain being applied to different aspects of our lives. From providing regular data storage with greater security since it can be stored in a decentralized manner to providing a more secure internet and even making money transactions and payments faster and cheaper. Over the years we have come to see many employees, celebrities, and sports stars, to mention a few, get paid using the blockchain.
E-commerce over the past years has also seen great growth and evolution, becoming one of the most lucrative sectors in the 21st century and the future looks brighter with blockchain making its way into e-commerce and providing both buyers and sellers with seamless experiences with shopping and selling online. E-commerce has changed the way we shop and live and the blockchain will change and improve the way E-commerce works or operates.
HOW IS BLOCKCHAIN CHANGING(IMPROVING) THE WAY E-COMMERCE WORKS?
Here are some ways the blockchain has aided the E-commerce sector
#1 Improving Payment Methods
As you would expect, the blockchain has really improved the way we make payments. So far, we have seen different cryptocurrencies such as Bitcoin and Ethereum being used as alternatives to traditional currencies due to the fact that they are decentralized, giving the buyer and seller total control of its operations.
Payments are now also faster and cheaper. If you have ever tried transferring money to a loved one in another country you would have noticed how long, expensive, and difficult it takes to do so, especially if one of the countries in question is a third world or underdeveloped country. With the blockchain, however, you can make these transactions without any pain(as long as you know how to do so), any time, any day, without worrying about high transfer costs.
In the coming years, we are likely to see a lot more e-commerce companies adopt crypto payments living behind the other conventional methods.
#2 Reducing Risks of Fraud and Better Security
Due to peer-to -peer technology, it is near impossible to hack transaction processes. The security of sensitive data is also assured with the aid of distributed ledger technology, which has been praised by popular websites such as coinmarketcap, as the highest possible level of protection and security for e-commerce data management.
Transactions with Bitcoin are just like giving a stranger cash. During transactions, you do not have to share any personal information, such as your name.
#3 Improving Management of the Supply Chain
The supply chain being a very crucial part of e-commerce can only mean that the improvement of its management will bring nothing other than good results. The blockchain as it does with every other thing it is applied for makes the management of inventory a lot easier. This however also means that companies won’t need to hire new staff to do so, and just like that a man’s job has been automated and has disappeared. The blockchain also makes bookkeeping and tracking of products easier, while keeping the integrity of the data.
With the blockchain already revolutionising E-commerce and as many vendors from across the world look towards e-commerce alongside the constant development of the blockchain we can only predict that E-commerce backed by the blockchain headed for greater heights.