E-commerce is where products are electronically sold and bought online or over the internet. Sharing highly secure and protected information is one of the most important features for any person or business. Unfortunately, many of our present data-sharing protocols and procedures are flawed, which might give fraudsters access to change or remove data at any point during the process. The ideal option for exchanging information on the internet currently is blockchain technology, which completely prevents the chance of data deletion or change.
What Is Blockchain Technology?
A distributed database or ledger that is shared by computer network nodes is known as a blockchain. It functions as an electronic database for keeping digital data. By offering a secure platform for information exchange, blockchain has the potential to transform every sector of business, including retail, e-commerce, financial institutions and the healthcare sector. They are known for their use in preserving a safe and transparent record of transactions in cryptocurrency systems like Bitcoin.
In a blockchain, data is gathered in groups called blocks that include sets of data. Blocks have specific storage capabilities and when filled, they are sealed and connected to the block that came before them to create the data chain known as the blockchain. The new information is then compiled into a new block which will be added to the chain. The uniqueness of a blockchain is that it fosters confidence by ensuring the fidelity and security of a record of data without the necessity for a reliable third party.
Blockchain technology is often used to track transactions. It can address issues with e-commerce from the elimination of mediators to streamlined processes and reduced complexity. Let us focus on the many effects that blockchain has on the e-commerce sector and how it can help transform current e-commerce practices into more safe and more modern ones.
Benefits of Blockchain in E-commerce
Blockchain has the potential to have a huge influence on e-commerce since it makes transactions secure and quicker. Including blockchain technology during e-commerce development efforts can help businesses handle product searches, selection, transaction processing and other operations digitally, giving customers a pleasant and safe experience. With the help of blockchain technology an e-commerce business can confidently accept online payments as they are secure, accurate, faster and transparent with a complete record stored for future use. Below are some of the benefits of blockchain technology for e-commerce.
1. Security
Given the recent spike in cyberattacks and data breaches, client data loss is now unavoidable. Around 15% of the phishing attacks worldwide targeted the retail and e-commerce industry. Blockchain technology is essential to ward off these threats. It provides the highest level of security for customer databases and CRM systems by enabling trustworthy identities that can be confirmed by numerous other trusted parties. It also helps in reducing security threats and false reporting bugs to a large extent. Blockchain technology does not ask any customer to provide any private information. As an alternative it allows the user to send money to a receiver secretly from his wallet.
2. Reduced Shipping Costs
The main characteristics of shipping operations include real-time tracking, cargo data visibility, quicker receipts with fewer errors and cheaper expenses. When used in these processes blockchain technology can reduce shipping costs, which might help the e-commerce industry to save a lot of money. Transport companies can track items from point A to point B more precisely and efficiently, slashing down prices for both producers and consumers.
3. Transparency in Supply Chain
Only a small percentage of consumers feel that brands are transparent. By using blockchain technology the e-commerce sector would be able to monitor any retailer or organization that disregarded a decentralized environment. Each component of the supply chain, including the producer, distributor, retailer and consumer is impacted here. Customers will be able to learn the answers to all the important questions, such as where the products are made, who made them and how carefully they were made.
4. Easier and Faster Transactions
Conventional transfers can occasionally take a long time, especially when sending money across borders which can take several days. By managing and storing customer payment information blockchain technology can speed up and secure the checkout process. One way blockchain could speed up checkout processes in e-commerce is by offering a tamper-proof ledger of transactions.
5. Middlemen Are No Longer Required
Trading always required a mediator before blockchain, such as a bank or broker, who
retained your financial information on their computers. Blockchain on the other hand, replaces this regulated mechanism with a decentralized ledger of linked records. Each record is connected to the one before it and the one after it, so every transaction has a verifiable history. No record can be altered, deleted or removed.
6. Guarantee Product Delivery
The imbalance between expectations and delivery has a significant impact on the experience and long-term involvement with the company. A negative delivery experience will result in more than three-quarters of online buyers refraining from making another purchase with you. Blockchain improves the delivery experience for your consumers by using IoT (internet of things) tagging to track product position throughout the delivery process and managing to deliver the products promptly. A decentralized and protected database of user interactions and preferences provides flawless omnichannel experiences.
7. Access to Warranties and Invoices
Warranties firstly lessen any potential liability for the manufacturer that might arise in the future, if there were no written warranty attached to the goods. Secondly, it informs the customer what coverage is still available and how to obtain it. Blockchain technology helps the manufacturer to move product warranties from paper-based agreements to the cloud.
One of the best examples of this is Warranteer (a cloud-based cross-platform system that links customers and sellers). Customers have control over a digital warranty wallet, which frees up manufacturers and retailers from administrative tasks. Additionally, blockchain technology for e-commerce tracks each customer’s receipts and extended warranties.
