Also known as Distribution Ledger Technology (DLT), blockchain is a decentralized, dispersed register that documents the source of a virtual asset. It is popular because it does not change the data of an electronic asset and makes it transparent by using cryptographic hashing. Because of its inherent design, its data cannot be changed, making it a lawful disruptor for sectors such as medicare and cybersecurity.
Let us take the example of Google Docs to understand the technology better.
Sharing a file with people on Docs is shared among them instead of getting copied or transferred. It forms a decentralized network that allows people to view the file at the same time. If a party makes modifications to the document, no one is left out awaiting changes, as all changes are documented in real-time, making it completely transparent.
But let us not assume that both are similar because blockchain is much more complex than Docs as it illustrates some crucial ideas of the technology:
- It lessens risk by keeping encrypted information in blocks.
- It keeps out fraudsters by taking apt security measures.
- It brings transparency by giving real-time access.
- The shared infrastructure allows for cost and time savings.
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Applicability of Blockchain in Online Industry:
As this technology is becoming a vital factor in running the global economy, it also acquires critical acclaim in the online industry. Digital commerce has included itself among those areas using electronic ledger technology to facilitate online trade at a fast pace. However, its application is not limited to just this because blockchains have so much to expect.
Blockchain and e-commerce can sync well with each other as both of them involve transactions. While blockchain keeps transactions secure and quick, e-commerce relies on it. Besides enabling users to securely share and stock their virtual assets, blockchain also handles remittance processing, product searching and purchasing, and attending to the customers.
The most commonly used digital currencies in the e-commerce industry are Bitcoin and Ethereum. While bitcoin establishes blockchain technology, ethereum provides a platform for businesses to govern their blockchains. People thus use it to purchase stuff only from online sites that consider cryptocurrency a genuine payment mode.
There are several benefits that both the retailer and the buyer enjoy by using this technology. It provides easy solutions to cyber threats and financial safety. It lessens the amount of money spent on managing the inventory, processing the payments, and boosting trade with third-world countries. Besides these, there are several other advantages that a business enjoys by adopting blockchain technology and using crypto as a mode of payment.
While crypto is expected to become the future of money in the coming years, blockchain is already changing how businesses operate. Visit this site to learn more about it in detail.
How can Blockchain Revolutionize the Digital Platforms?
As discussed above, blockchain and e-commerce create an ideal economic habitat that is feasible to both digital business people and buyers. As online people in business rapidly adopt this technology, they realize innovative ways of attending to their potential and existing customers.
Now that we know this technology will benefit everyone using the internet, let’s discuss some other opportunities that blockchain will create in the e-commerce market in future:
Creating Shrewd Contracts
Smart contracts are digital programs that work on the basis of preset rules to automate routine chores. As blockchains store such tasks, it is expected that smart contracts can digitalize steps relating to e-commerce and grow by reducing the staff salaries to perform chores that can be automated. They also facilitate the management of inventory.
Storing Paperwork Online
Some people like keeping a record of their transactions, maybe for calculating their expenses or filing for returns. But buyers often undergo the peril of losing receipts and warranty cards when claiming the coverage of their purchases. All thanks to blockchain technology, now they can stock their cards digitally.
As the e-commerce platform grows, there are growing worries relating to the validity of online reviews. As an online business’s prominence depends on how genuine its reviews are, there is a need to use blockchain technology to confirm them.
Valid Supply Chain
Trustable supply networks are crucial for a business to achieve their dreams as it enables them to monitor their stocks. It also helps them in verifying the quality and quantity of goods that suppliers are providing them. When these people use blockchain to track the supply network, they can keep track of their products, thus maintaining transparency.
Attractive Offers & Discounts
Using blockchain technology in running a business allows retailers to issue redeemable prize money to their customers whenever they reach a particular spending threshold. They can also conduct loyalty programs to captivate more people and enlarge their business. Consumers also profit from such offers and concessions.
Paying Online Creators
In today’s times, content creators have a significant contribution to the growth of an e-commerce website. You must have noticed that many people nowadays are stepping into this business on social media platforms such as Instagram. One of the amazing opportunities that blockchain has in stock for such creators is the potential to earn virtual money every time they construct and share engaging posts on these websites.
For example, the beauty giant Nykaa allows digital content creators to create attractive content for their website to attract more people and thus increase their sales.
E-commerce trading people from several parts of the world are slowly using blockchain technology to keep pace with the environment. Today, for almost all businesses, blockchain is like a backbone of online trading and remittance because it offers numerous benefits that cannot be overlooked. If you think about it, companies have a lot of potential to maximize their profits once they adopt this technology and seriously use crypto.
As the future is impending, we can only regularize the economy by making online business and commerce unambiguous. Blockchain aims to seize this power by giving people authority over their affairs.