The Power of Blockchain in E-commerce: Enhancing Security and Transparency
How Does Blockchain Technology Work in the E-commerce Industry?
As previously established, blockchain is a digital ledger in which data and information can be stored without the risk of being hacked, wiped, or altered. At the same time, eCommerce is a digital landscape that supports thousands of transactions each minute. Whether the customer is placing an order, browsing the product, creating a profile, or making an online payment, a large amount of data must be saved and maintained. Many data breaches have occurred due to the lack of a secure and trusted platform to house this critical data.
As a result, blockchain emerges as the ideal platform option for storing all of this data about transactions and consumers without the risk of a data breach. Individual blocks of the blockchain retain complete information.
Use Case of Blockchain in eCommerce
Let’s take a look at how blockchain is being used in eCommerce and how it is changing the industry.
1. Peer-to-Peer Payment
The monetary transaction is an essential component of the eCommerce purchasing process. Currently, most transactions are conducted through banks, which serve as intermediaries. The transaction speed is fully dependent on the skills of this intermediary in this case. Similarly, payment security, transaction speed, payment return, and all other elements depend on the middleman.
As a result, blockchain in e-commerce payment replaces the traditional smart contract procedure. The payment process becomes more decentralized with blockchain, and no intermediary controls your monetary transactions. Similarly, your payment is sent straight from you to the vendor.
2. Customized Product Offerings
In this competitive world, providing a personalized experience to clients is critical to developing a loyal consumer base. On the other hand, merchants require critical information about their consumers, such as their purchase histories, preferences, and demands.
Blockchain integration in eCommerce assists in capturing such critical insights and other customer information on its secure ledger. Customers have the upper hand since they have complete control over their data and can choose which merchants they wish to share it with.
3. Product Information You Can Trust
Customers look for credible information about the goods before purchasing because product information is one of the decision elements for the purchase. The product description is the primary source of information for millions of customers on the internet marketplace. The buyer purchases the product if the product description fulfills the requirement, and vice versa.
4. Customer Data Management
Blockchain technology may be used to safely store and manage customer data, making it a more secure and efficient alternative to traditional databases.
5. Smart Contracts
Smart contracts based on blockchain technology can automate and streamline numerous eCommerce processes such as order fulfillment, payment processing, and dispute settlement.
6. Fraud Prevention
By providing an immutable record of all transactions, blockchain can aid in the prevention of fraud in eCommerce. Chargebacks and other sorts of fraud can be reduced due to this.
Blockchain implementation in eCommerce in real-time
Renowned eCommerce platforms have already used blockchain technology to improve the consumer experience. Consider the following case studies:
Amazon Blockchain Management
When it comes to ecommerce systems, the word Amazon is unmistakable. As the industry leader, the platform is well-known for its inventive implementations in the landscape. Whether it’s using AR/VR for a better consumer experience or blockchain in the supply chain, the company has worked tirelessly to improve the efficiency of online purchasing.
For a long time, the firm has faced tracking and tracing difficulties, where clients require more access to know the actual position of their item. The current supply chain is based on an antiquated paper procedure with disconnected data silos, which slows the process down.
eBay will launch the Libra cryptocurrency
eBay has been in the eCommerce market for decades and has released fresh improvements on a regular basis. The company recently partnered with the Libra Association and plans to promote Libra Cryptocurrency extensively. The new digital money is expected to be utilized for all types of platform transactions.
The firm’s goal with Libra Cryptocurrency is to create a trustworthy, accepted, and stable cryptocurrency that may significantly alter the marketplace experience. With this cryptocurrency in place, purchasers will have access to inventory given by sellers from all around the world while also being able to make payments in their preferred currency.
Possible Blockchain Future Scenarios in eCommerce
In 2021, the blockchain market was valued at $4,982 million, with a projected valuation of $67,385 by 2026. In 5 years, the figures calculate a CAGR of greater than 68.4%. Without a doubt, the blockchain concept is becoming more familiar in the corporate world and is being used to transform the user experience. So we can anticipate:
- Blockchain will be a crucial medium for storing and sharing customer information, putting greater data control in the hands of individuals.
- As an internationally accepted means of payment that does not require currency exchange, cryptocurrency may attract a broader use case.
- Parcel tracking and tracing may be equipped with blockchain technology, offering real-time information into the package’s current location.
- People’s trust in purchasing luxury and expensive commodities from online platforms will grow as blockchain ensures the legitimacy of the information.
- With blockchain technology in place, payment and refund times will gradually reduce.
Finally, blockchain technology has the ability to transform the e-commerce business by addressing many of the issues that retailers and consumers confront. Its capacity to deliver safe, transparent, and decentralized transactions can improve supply chain efficiency, cut costs, and promote buyer-seller trust. Blockchain applications in e-commerce range from payment processing and digital identity verification to product identification and supply chain management.
Reveation Labs can be a valuable partner for eCommerce businesses looking to leverage blockchain technology to improve their operations. Let’s Discuss.