Blockchain is poised to become the standard technology for facilitating global financial transactions. Blockchain, also known as a global economic engine, is anticipated to reach $135 billion by 2023. This demonstrates that Blockchain adoption is not only necessary, but imminent across all business sectors. As Blockchain moves closer to the key sectors of the economy, a growing number of eCommerce app development companies are discussing the potential Blockchain e-commerce application in a variety of other domains besides finance, such as E-commerce.
The E-commerce industry has revolutionized the global shopping landscape. Now Blockchain is poised to revolutionize the E-commerce industry.
Utilizing Blockchain for E-commerce will contribute to the establishment of a revolutionary economy. While both Blockchain and E-commerce enable transactions, Blockchain is significantly more efficient and secure.
What is Blockchain technology?
According to the Internet Society, blockchain technology facilitates distributed public ledgers that store immutable data in a secure and encrypted manner and guarantee that transactions can never be modified.
Despite the fact that Bitcoin and other cryptocurrencies are the most well-known applications of blockchain, this ‘distributed ledger technology’ (DLT) is discovering a wide range of applications. Many purposes, including data storage, financial transactions, real estate, and asset management, are being investigated.
Blockchain is a distributed ledger that stores, executes, and distributes digital assets in a secure manner, either manually or automatically.
It can manage the entire user experience, from product search and selection to payment and post-sale consumer questions, and that’s just the beginning.
E-commerce Categories for Blockchain
Blockchains are specialized databases coupled with highly advanced software that facilitates communication with the outside world.
Nevertheless, not all Blockchains are identical. There are roughly four varieties of Blockchains utilized in E-commerce. These four are extensively accessible to E-commerce merchants.
First Bitcoin –
Bitcoin is a cryptocurrency, and its creation was the driving force behind the development of Blockchain technology. Several prominent organizations, such as Tesla, Microsoft, Google, and Shopify, have adopted Bitcoin. Subsequently, a multitude of businesses adopted Bitcoin as a payment option. Accepting Bitcoin to facilitate payment processing is not only an opportunity to access the enormous cryptocurrency market, but also an efficient method of utilizing Blockchain.
IBM does not have its own cryptocurrency. However, the Blockchain platform it provides is effective for large, complex online retailers.
Ethereum is a cryptocurrency similar to Bitcoin. However, it has its own set of advantages and disadvantages compared to its competitor. It has not been as broadly adopted as Bitcoin, but its network is able to host multiple other cryptocurrencies. Hosting smart contracts is one of Ethereum’s most prevalent applications. Ethereum is ideal for E-commerce vendors because it provides a space for retailers to operate their full-fledged Blockchains.
4. Custom –
This is the most practical and adaptable Blockchain solution for e-commerce retailers. A Blockchain development company can assist businesses in tailoring Blockchain to their business objectives and aims. Additionally, it is extremely cost-effective to use to increase the profit margin over time.
Types of Blockchain-based E-commerce
• Integration with Business Processes – There are numerous applications for blockchain beyond the execution of online payments. Distributed Ledger Technology’s (DLT) ability to integrate with new and existing business systems is the primary driver of its growth. This can facilitate integration between an E-commerce retailer’s web store and a multitude of external and internal processes, systems, and partners.
• Cost-Effectiveness – Blockchain has the capability to integrate product images and descriptions, online payments, inventory administration, and other business processes. This results in less system maintenance, less need for IT support personnel, and fewer administrative tasks to be completed. Blockchain enables E-commerce businesses to devote more time to primary business operations and less time to store management.
• Ease of Use – Blockchain-powered cryptocurrencies are extraordinarily user-friendly. In contrast to traditional currencies, an individual does not need to consult a regulatory authority in order to open an account for themselves. Blockchain enables you to complete the task without leaving your comfort zone. Moreover, the procedure is costless. There is no cost to create an account. The virtual currency account is free of charge.
• Faster Transactions – Conventional transactions require a considerable quantity of time. For example, money transfers between countries or continents may take several days. In contrast, Bitcoin-based transfers are expedient. Few minutes are required to complete money transfers. Bitcoin transactions can be processed at any time, from any location, and almost instantly.
• Security – DLT enables the utmost level of online database security. Although there have been instances in which certain vulnerabilities or loopholes in smart contact coding have led to fraud, there have been no confirmed instances of fraud as a result of a significant Blockchain backbone framework. A single data intrusion can cost an e-commerce retailer millions of dollars in revenue, as well as a significant hit to their market share and reputation. However, Blockchain can provide a level of security that protects the entire data structure and prevents future data breaches.
Clearly, Blockchain technology presents E-commerce sellers with a vast array of advantages and opportunities.