The Future Impact of Blockchain Technology in E-commerce

The blockchain technology is considered to be the most innovative technology in the upcoming industrial revolution. It is one of the dominant technology and possibly shows its effect in almost all the regions of the economy which will be going to transform it. Presently, various sectors of industry such as financial, logistics and supply chain management, the health sector, the gaming industry, and online gambling are employing this innovative technology. Nowadays, the industry like e-commerce expecting to have the most significant impact on its daily customers and seller activities. The most popular e-commerce industries such as Amazon, ebay, Flipkart have entirely transformed the way of our shopping and living. The e-commerce platforms have provided several benefits such as accessibility, affordability, and a vast variety of products to the customers. But at the same time, it has given rise to the different problems related to the e-commerce. Most of these issues are connecting with the payments, supply chain management, data security, satisfied retailers, well-organized management systems, satisfied clients and transparent marketplaces in e-commerce. The existing e-commerce business model will be going to face a difficult time in resolving these issues in a single dive. The e-commerce platform is now utilizing the innovative blockchain technology, to solve these problems. So let’s discuss the issues faced by the e-commerce industry and how Blockchain technology is used to resolve them in the future.

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1. Payment: Similar to the financial service sector, the payment industry will also obtain ample benefits from the blockchain technology. The payment solutions given for the international e-commerce is not that much perfect. Nowadays, most of the payment industries are utilizing the payment solutions such as PayPal and Skrill still requires some modification.  The existing payment options involve high processing fees together with the highest fees charged by the e-commerce platforms against any sales completed by the vendors by utilizing their platform. These payments frequently begin from 2-3% of the total buying price of any transaction.

There are several blockchain e-commerce projects like Request Network and E-coinmerce, which has an objective to develop, market-based on the blockchain employing quick and secure transactions for any e-commerce business model. The E-coinmerce platform enables a customer to purchase as groups for higher discounts, sale the goods to each other, and also facilitates the daily deals of the customers at a considerable discount. The user will also achieve the incentives by referring the friends, sharing agreements with the social media followers, etc. They will also allow writing the reviews for purchasing of any goods. The request network also wants to apply the blockchain technology for the financial transaction features of the e-commerce industry by offering low-cost financial transactions, high-security standards, and utterly wonderful client experience.

2. Data Security: The e-commerce platform contains a vast amount of data, and thus it has given rise to one of the most critical issues, that is, how the data are storing in this existing e-commerce platform. Most of the data in the e-commerce are gathered from the customers and vendors which are registering on any of the given e-commerce platforms.

The client keeps the data on a centralized server where the online offenders can easily hack it. Most of the e-commerce companies have suffered a lot of attacks from the cyber-criminals due to which a significant amount of data has been losing. But with the help of blockchain based e-commerce platform, such kind of attacks can be avoided because the blockchain platforms are decentralized, which means that the customer’s data is also distributed.

It is not practically possible for a hacker to attack all the nodes of a blockchain platform, and thus the data kept on a blockchain e-commerce platform is considered to be comparatively safe.

3. Supply Chain Management: This is possibly one of the most necessary features of the e-commerce industry. In this speeding e-commerce professional world, the current supply chain management system has several issues, which are resolving with the help of blockchain technology. The objective of the blockchain projects such as VeChain is to build an incorruptible visualization of the supply chain process. Since authenticated data on the blockchain network is almost ethical, the supply chain process created on a supply chain emphasized blockchain network is a much desirable solution for the supply chain management issues faced by the e-commerce industry today.

An honest, incorruptible blockchain network will offer a transparent supply chain, using which the customers will be able to realize the order flow of the products they purchase and also helps to enhance the confidence of the customer.

4. Transparent marketplace: Well, this is one of the enormous problems faced by the current e-commerce platforms.There are many objections that have been stated in contrast to the massive e-commerce stores by other vendors. The e-commerce platform like Amazon are known for the wounding of direct contact between the consumers and the sellers, and occasionally restricting a merchant’s page without any explanation. This transparency can be lowered with the help of blockchain based e-commerce platform such as Bitboost. It is a distributed marketplace that enables the online transactions between the purchasers and vendors in a transparent and frictionless way.

The Blockchain technology has provided the answers for the inherent problems associated with the e-commerce industry. The industries like Amazon, Alibaba, and ebay have shown their great response by working on blockchain research and development, whereas other sectors such as Walmart and Unilever are working on blockchain projects with a large technological company like IBM.

To resolve the various issues occurred in the current e-commerce platform, the E-commerce companies will be going to utilize the blockchain technology and get the problems solved as quickly as they can. The blockchain technology will also use an excellent tool which helps to create a fantastic user experience that is Artificial Intelligence. The Artificial Intelligence will help the blockchain based e-commerce platform clients to enable the system interactions in a better and more automated way. With the help of this, the reviews and incentive programs would be flawless.

The level of interruption releasing in e-commerce, retail and on other social platform is imagined easily. Initially, it is required to improve the customer experience because of the blockchain technology and the successive enablement of consumers, manufacturers and other vendors. And to perform this, it is essential to have customer insight. Linking forces can achieve this with consumers and other suppliers on a blockchain based platform.

Secondly, any profession that functions as a distributor will be at high risk of being made outdated by blockchain. It is particularly true for those companies that cannot represent how their service adds value and also it does not concern about the opaque organizations. In the world of Blockchain, it is required by the companies which offer an intermediary service to evaluate their level of added value to their customer relations.

Benefits of Blockchain in E-commerce:

1. With the help of a distributed model, the blockchain can simplify the various operations and thus improves the operational efficiency. Its smart contracts are used to standardize the logistics and payment handling partners. The blockchain technology enables the integration with different management systems and also restructures the workflow.

2. Well, the bitcoin is the most familiar use case for the blockchain technology. Most of the E-commerce seller depends on the bitcoin and a host of other crypto-currencies so that they can gain the cost-effective digital payment solutions.

3. Trust and Transparency: The blockchain technology provides the transparency in transactions which increases the trust of the customers. Recording each operation in a shared ledger and anyone cannot alter that. Thus, it provides a high-security, essential visibility, and faster processing speed including the traceability with the help of a distributed system.

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Conclusion:

The blockchain technology and e-commerce answers an exciting business opportunity with respect to the transparency, reliability and cost reductions. However, it also poses several threats to the companies which cannot add any value to their customers. With the exclusive benefits of blockchain in e-commerce, it now becomes essential for the business to hold it for its overall growth. The blockchain technology proves to be a good solution for those vendors who want to include transparency in their business transactions and to manage the consumer data reliably. It also helps to decrease the dependency on paper-based legacy systems and contains the crypto-transactions. So if the business wants to stay significant for the future customers, then they should start to explore the potential benefits of blockchain technology and e-commerce now only.