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 begin to expect every shift to ease their online experience and retailers who are not updated about happening technologies, will be left far behind in the mad race 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?
In order to truly understand the blockchain e-commerce 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 provides, it is a perfect and natural fit for the e-commerce industry. As the Blockchain technology was initially made 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 can be used online 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 mostly used by people for performing any type of online traction however this poses a serious risk because your card information can be hacked and used by cybercriminals. 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. Whenever a transaction is performed 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 will have from blockchain technology is that the transactions will become a lot faster than what we are used to now. If the customers are using traditional payment methods the whole process can involve up to 16 steps and if there are intermediary parties involved the number of steps in the transaction can increase even further. As compared to this the transactions done on the blockchain are on a single network which makes sure that there are no intermediary parties involved. 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 and are being used 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?
- To begin with customers will be delighted as Blockchain accommodates digital currency transactions which cuts costs to a great extent. 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 crypto currency, 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, delays and damages are reduced 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 now can be integrated 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 involved in this transaction adding more value to the complete process.
Blockchain is still in its nascent stages. This technology is packed with potential needs to be explored and utilized to its fullest in the coming years.