Given the pace of innovation in e-commerce, it’s easy to miss some of the more minor changes. But there’s one, in particular, that could change how we buy and sell online forever: blockchain. Blockchains are public ledgers that record digital transactions. They’re decentralized and transparent, so they can lower fraud risk while simplifying payments. And now, they’re being used to help reduce costs and increase security on websites like Amazon, eBay, Kickstarter, and Etsy by securely verifying transactions without third parties like banks or PayPal involved. The blockchain market will show an average annual growth rate of 56% in the forecast period from 2022 to 2029. The global spending on blockchain solutions has expected to reach nearly $17.9 billion in 2024. Please get in touch with Managed IT Services Houston to know more about how your e-commerce business can leverage Blockchain technology.
What is Blockchain in Ecommerce?
E-commerce has a significant global impact on retail, with 19% of total sales generated by e-commerce channels. This figure is expected to increase exponentially in the coming years. E-commerce is growing in popularity and relies on transactions on a large scale, making it vital that companies maintain the safety of customer data. Customers should be able to purchase products from your site without concern about compromised personal information. You must provide customers with a secure platform where they can share and manage their data without fear of cybercrime. Placing orders, tracking details, managing inventory, and delivering products are some of the tasks involved in e-commerce that rely heavily on accurate transaction ledgers. In nearly all cases, it would be impossible to manage this data manually; IT Support Houston
ensuring that your site has an effective security system should be one of your highest priorities. Manual ledger management is inefficient and vulnerable to fraud; thus, it is crucial to have an effective online ledger management system in place.
How Blockchain will Revolutionize Ecommerce
Smart contracts are computer programs that run on a blockchain and can be used to exchange money, property, shares, or anything of value. They do not require third parties or middlemen because they run on the blockchain and are executed by a network of computers. Smart contracts can be programmed to perform any tasks required for proper function. A smart contract could be programmed to trigger an action when certain conditions are met (e.g., release payment upon delivery).
Generating Genuine Reviews
One of the biggest problems with online reviews is that it’s difficult to know whether they’re genuine. Blockchain can help by giving you more transparency into what’s happening.
One of the main reasons why fake reviews are so problematic is that people want to trust their peers and make informed decisions about what they buy. They want to know if a product has been well-received by other customers before buying it themselves. In traditional e-commerce, this is difficult due to a lack of anonymity for reviewers and an inability for them to publicly identify themselves as someone who enjoys using a specific product or service over another one like it from another brand (e.g., if you want your customers knowing which toothpaste brand works best on sensitive teeth).
However, blockchain allows consumers greater control over their data while ensuring that their feedback doesn’t go unnoticed by retailers/manufacturers who could benefit from hearing what real people think about their goods/services firsthand.
Paying Content Creators
One of the most exciting things about blockchain technology is that it can change how we pay content creators. When you buy something on an e-commerce site, you pay the seller after receiving your product or service. But what if you could pay for your purchase with cryptocurrency before receiving it? That would make a difference for small businesses selling their products online or through social media platforms like Etsy and Instagram—and even bigger companies who don’t have access to conventional banking services or credit cards.
Imagine paying an artist directly with cryptocurrency as soon as you see their tweet about a new piece they’ve created! Or imagine supporting your favorite comedian by tipping him after each video he posts on YouTube! This kind of instant payment system would put more power in the hands of content creators than ever before—and let them earn more money while doing it.
Accessible to Access Receipts and Warranties
Blockchain can be used to store receipts and warranties. This is a massive benefit for e-commerce because it ensures you have an immutable record of the products you purchased. You can also verify these records on your phone, which makes it easier to access information when you’re in a store or checking out online at a different site than you originally purchased from.
As you can see, there are a lot of opportunities for e-commerce businesses to take advantage of blockchain technology. It can change our daily business and make transactions more secure. By embracing this new technology, companies will be able to offer an enhanced customer experience while increasing profits at the same time.
Post courtesy: Scott Young, President at PennComp LLC.