Shopping has been changed for the better with the introduction to online shopping, otherwise known as E-Commerce. This has been a drastic shift in the way people view shopping, and that same view is about to diversify even more through the use of Blockchain Technology.
Blockchain uses something called a Decentralized Ledger for spreading and storing transactions in each individual node separately, instead of one Centralized Database. This adds to the security factor, since not one specific place holds everything. Also, the transactions which flow inside need to first be approved by each participant in the ledger in order to be accepted. This makes it trustworthy since multiple users have to agree initially, thus adding to the integrity.
Only participants from the ledger can employ transactions, which makes it tamper proof from outside sources and providers a shield from general third party manipulation.
While data is flowing through, everything is done in an encrypted manner with high-end algorithms so the relationship between the so-called blocks inside is almost impossible to manipulate or alter. On top of all of this, everything is time stamped from the moment it is entered, which basically means that it can always be tracked.
What makes Blockchain so revolutionary for E-Commerce
Currently, E-Commerce processing fees incurred either from banks or the vendors themselves are very pricey. Blockchain technology can improve this since it will provide lower fees as well as more security.
Supply & Demand Control
The cycle of goods from suppliers to E-Commerce and all the way to the customer can be a heavy thing to track. This refers to the quality and quantity of the product, as well. There are many procedures in place which have to be satisfied, thus making everything a lot more difficult and less transparent. Blockchain, with the help of an optimized platform, can help via constant transparent records. This is a definitive benefit for everyone.
Inventory, Smart Contracts & Loyalty Rewards
By adding smart contracts to inventory control in order to make sure that the stock has been properly managed & replenished, everything can run automatically from the retailer when the limit is reached. This, in turn, guarantees a good balance in the stock procurement process.
Smart contracts can also be used for tracking and improving customer relations, which leads to an automated system of individual reward.
Better Security & Retention
By employing decentralized solutions, sensitive information such as credit cards or vendor information is held on each node separately. This means that data cannot simply be lost or otherwise altered.
Honest Reviews via Crypto Rewarding
Usually E-Commerce websites suffer from either fake reviewers or none at all. Buyers with Blockchain technology can be persuaded to leave a comment after each purchase by offering discounts added to their accounts or by sending them a small amount via Cryptocurrency through to their Digital Wallets.
Advantage of Generic Payments
Blockchain offers cryptocurrency. This ensures that payment is done in a secure manner with lower fees and at a faster rate. The fear of transactions being misused can now be an afterthought, since it is much harder to abuse than credit cards. Also, no third parties are needed to solidify these payments. All of this adds to a more constructive and stable economy for both the suppliers and customers.
Blockchain technology, with its major benefits such as security, stability and alternative payment methods like cryptocurrency, is a clear winner when it comes to the modern market. Opting for this alternative can prove to be very cost-effective and much more practical for everyone involved in the process.