E-commerce is one business space which is forever exposed to customer demands and it keeps pushing its own limits to greater heights. Every retailer faces the challenge of adopting the latest trends and technologies, incorporating them into their online space simply for the convenience of their customers.
Visitors expect every technological shift to ease their online buying experience. Retailers have to adapt to these shifts in order to emerge as forerunners. One such technology which has been empowering online business owners and also taking this space by storm is Blockchain. So what is blockchain and what is the buzz all about?
Influence of blockchain in eCommerce
In order to truly understand the blockchain eCommerce influence, it is important that we understand what blockchain technology actually is. The concept Blockchain isn’t exactly that new and it has been around since 1991 but the way in which we see blockchain now developed because of bitcoin. It is basically a digital record that stores a list of the transaction which is usually referred to as “blocks”. Every block is linked with the previous block and contains a timestamp as well as the data about the transaction. Another important characteristic of blockchain is that any data written on a block can never be edited or changed.
With all the security and trust between different partners in the chain that a Blockchain provide it is a perfect and natural fit for e-commerce industry. The Blockchain technology is known for storing transactional data. It can really affect the way in which traditional e-commerce is working these days. However, it is important to mention that the data stored in Blockchain doesn’t have to be financial. It can be any information that you want to keep immutable such as payment history, order placement, etc. Dealt here are some of the major ways in which Blockchain Technology will change and revolutionize e-commerce.
The Interesting Collaboration: Blockchain Ecommerce
Technologists untangle the capabilities as blockchain to be a powerful source through which one could handle critical data by completely ruling out possibilities of fraudulence and forgery. Isn’t this one reason enough for retailers to grab this technology? As Blockchain maintains blocks of data which can be amended at different places without restrictions on locations, the original copy of the data remains unchanged whatsoever the situation be. Moreover, amendments are possible only by authorized users who are properly tracked and can be produced for references. So how is this going to help e-commerce? The answer is cryptocurrency. Blockchain supports cryptocurrency which is handy for an online transaction without falling prey to any misuse. This attribute of blockchain substantiates the integration of blockchain e-commerce websites.
Blockchain technology is extremely secure giving us a major advantage especially when it comes to financial information of buyers. Credit cards and debit cards are popular in online traction however, this poses a serious risk of hacking. In one year almost 31.8 million consumers only in the US became victim to credit card frauds. Cryptocurrencies based on blockchain technology doesn’t work like that. In a transaction, the customer transfers the currency from their personal “Wallet” into that of the seller. Only a randomly generated identifier is the data that is generated during the whole transaction making it extremely secure.
Another major advantage that e-commerce has from blockchain technology is that the transactions are a lot faster. If the customers are using traditional payment methods the whole process can involve up to 16 steps. Further, if there are intermediary parties the number of steps in the transaction can increase. As compared to this the transactions on the blockchain are on a single network which makes sure that there are no necessity intermediary parties. This allows for faster transactions because the only thing limiting the transaction speed will be the speed of the internet connection.
Alternate Payment Methods:
Cryptocurrencies are the blockchain powered currencies and the first cryptocurrency to be launched was bitcoin. Now there are many cryptocurrencies available online as an alternative to traditional currency. The main difference between cryptocurrency and the traditional currency is that cryptocurrency is decentralized and extremely secure. Not only are bitcoins and other similar currencies easy to implement, but they also offer several advantages to both buyers and merchants when it comes to online transactions. Customers can easily choose to pay using cryptocurrency just like they would select PayPal or any other payment method.
How will Customers enjoy this Experience?
- Blockchain accommodates digital currency transactions which cut costs to a great extent and hence wins customer delight. It eliminates chances of fraudulence. It takes just seconds to transfer money to any part of the globe. What more could customers ask for?
- With cryptocurrency, customers are able to overlook complicated payment gateways and the fear to provide sensitive account information.
- Blockchain does not limit to online visibility alone. It takes charge of supply chain management too. It keeps track of order placement, tracking shipment status, delivery status makes necessary changes all in a highly secured environment. With Blockchain intervening into supply chain management, reduces delays and damages to a huge extent.
- A transparent process plays an important role in e-commerce. The product details including its manufacturing details, when exposed contribute to earning the trust of customers.
A recent survey done by IBM says that banks will be shifting over to commercial blockchain solutions in full operation by 2020.
Magento and Blockchain:
Magento, as we know, is the backbone of e-commerce websites. Blockchain can collaborate with Magento websites to give pleasing experiences to the customers. Bitcoins as Blockchain offers is virtual money which can be stored in online wallets and used for shopping. Blockchain regulates the complete procedure ensuring there is no fraudulence taking place. Transactions happen over a secure environment called the Blockonomics wallet which is similar to your online wallet. There is no intermediate component in this transaction adding more value to the complete process.
Blockchain is still in its nascent stages. The research and utility potential of this technology is very high.