Blockchain in E-commerce: Everything You Need To Know

Blockchain in E-commerce: Everything You Need To Know

Blockchain in E-commerce: Everything You Need To Know – this guide will help you understand the role of blockchain in the wide world of E-commerce.

Cryptocurrency and blockchain technology, which are still in their early stage, has reigned in many discussions. This technology seems so perfect that it may fit in every industry. For example, blockchain is crucial not only for fair governance but also for faster business transactions.

One of the industries that have been swept by blockchain technology is e-commerce. If you wonder about the benefits of blockchain in e-commerce, read on; Blockchain e-commerce may be the future of businesses. 

Suppose you are a business owner or just a crypto beginner who needs to learn more about crypto. This detailed guide will explain the impact of blockchain on businesses and platforms, helping build the e-commerce blockchain bond. 

 So, let me show you the benefits of blockchain in e-commerce.

The Impact of Blockchain on Business

E-commerce is among the fastest-growing business industries in the world, no wonder the blockchain community wants to tap these benefits. But, that is not all; eCommerce would benefit from blockchain since the internet is already dawning upon key players like Alibaba and Walmart, spending heavily on the blockchain. So, let’s look at how the e-commerce blockchain bond benefits businesses.

Faster Payments


Commerce may benefit from blockchain through smart contracts. Are you wondering how this works? Smart contracts eliminate third parties in any transaction. Instead, they automatically execute a transaction when both parties fully meet the contract’s conditions.

Here is how you benefit from e-commerce blockchain; as a business owner, you can utilize smart contracts in your business. Still, asking how? 

Let’s take an example, if a shopper checks out of your online store website, the funds paid will be held in smart contracts till you, as the seller, approve the product ownership transfer and connect the shipping firm involved. When all this happens, the smart contracts will release the funds to the merchant’s wallet.

Moreover, payment services like PayPal and Venmo may seem smooth and perfect, but there is a drawback; there is too much left unsolved without blockchain. On the other hand, integrating blockchain into these payment services will accelerate the payment process and cut some charges. This is because smart contracts will get rid of a third-party paid a fee to play his role in every transaction. 

That’s Not All Blockchain Has to Offer:

With smart contracts, the transaction prices become automated. In addition, it will increase security and trust between buyer and seller. Therefore you won’t have to give a third party your sensitive financial information for you to transact.

Moreover, there are various ways how cryptocurrency will affect e-commerce. For example, Crypto users can pay for their goods and services with cryptocurrency with ease. All you need to do is link your wallet and transact. You don’t have to add personal card details. Also, the store won’t incur chargebacks since the blockchain is immutable.

The e-commerce blockchain allows retailers to put together services like payment processing, inventory management, product descriptions, thus spending less on purchasing and maintaining separate systems.

Let’s take the example of Upwork and Bounties Network. Upwork is centralized, while Bounties network is decentralized. 

Upwork allows freelancers to interact via their web applications. Also, payments must be made via the platform failure to which you may be banned from using the app. Also, note that credit card providers and payment processors will charge you a fee. 

On the other hand, Bounties Network has a better offer for freelancers. This lightweight web 3.0 Dapp links freelancers to funders. It is open-source, and you can re-use the code to build similar Dapps. Smart contracts on the Ethereum blockchain execute escrow and payments. 

 A Decentralized Online Market

Blockchain in E-commerce: Everything You Need To Know

Blockchain is decentralized. Hence it provides a conducive environment where buyers and sellers can interact without a central authority. In e-commerce blockchain, users set all the rules concerning a transaction. The developers won’t upgrade the platform without consent from the community. This provides a fair community. 

If a decentralized market seems impossible, read on. BitBoost is one of the decentralized marketplaces. It offers buyers and sellers a conducive environment to transact without being monitored by big companies and authorities. Since BitBoost is running smoothly, there is a high chance of more similar projects in the making. 

Verifiable Supply Chains

E-commerce platforms have managed to streamline the business part of their sector, but the shipping part remains a challenge. Yes, improvements in the shipping sector are critical. Why is it vital? Currently, packages still take long to reach the buyer since they have to go through numerous hands before they are released. The process includes clearing documents, check-ins and outs in partner IT systems. Not only are they tiresome, but also not error-free, ineffective, and costly. 

Moreover, for products with expiration dates or certificates of authenticity, the e-commerce blockchain ensures inventory’s validity and quality and reassures customers are getting what they ordered. I bet no one wants a fake ring on which you have spent a thousand dollars on it?

Blockchain gets rid of all these prices. Here is how. Blockchain in the e-commerce supply chain offers businesses a transparent way to ship items across seas. Every party along the supply chain needs to have a copy of a similar ledger explaining the origin and movement as it travels to the buyer. This saves every party the time to come up with his data, and also it will cut down shipping costs. Errors will also be minimized as there is no consistent record keeping. 

Adopting blockchain in the e-commerce supply chain will benefit buyers, the shipping team, and the seller. The seller will track his product in real-time until it reaches the buyer. This will leave the seller worry-free and satisfied. Likewise, buyers will get complete information on the products they are buying.

Secure Transactions

Blockchain in E-commerce: Everything You Need To Know

More benefits of blockchain in e-commerce are that it offers security. But unfortunately, even by partnering with notable security companies, e-commerce security still sucks. This is because data is stored by central authorities whose services may be compromised anytime.

Blockchain ensures the top-notch security of all e-commerce data and CRM systems. Since every node on the chain has a similar record, it is almost impossible for hackers to compromise it. Therefore, storing merchant’s and customer data securely is a significant impact of blockchain on business.

Effective Rewards And Referral Programs

The E-commerce blockchain also allows companies to give reward points redeemed over numerous sites and partner brands. I wouldn’t want to miss out on this one. In addition, firms can pay content creators via digital tokens, which are convertible to their native fiat currency.

Generation Of Authentic Reviews

Business owners can use blockchain technology to check customer reviews’ authenticity about their products and services. For example, have you ever had the worst shopping experience, yet thousands of online reviews claimed it was the best? Now you know, fake reviews.

Smooth Business Management

Additionally, the e-commerce blockchain is not all about smoothening the transaction process. As a business owner, you can reap other benefits of blockchain in e-commerce. For example, you can use smart contracts to automate your accounting procedure, budgeting and payroll process, inventory control, minimize paperwork, running costs, and errors.

For example, if you buy an iPhone online and pay for the deposit with bitcoins. The receipt will be in a virtual contract. The retailer will then send your the iPhone with a specified delivery date. If the iPhone fails to reach you on the specified delivery date, the blockchain will refund you a part of your deposit. However, if you receive your phone time, the blockchain will release all the funds to the retailer.

You may also use blockchain technology to keep your customer receipts and warranty information safe. This makes it easier to verify ownership and warranty validation.

What is Ethereum E-Commerce?

Ethereum has taken a giant step and is now offering e-commerce a way to make its blockchains. On the other hand, Bitcoin is the most popular cryptocurrency customers use to make payments.  

Here are examples of how Ethereum- eCommerce has impacted businesses and our daily activities via platforms built on the Ethereum network. 

Uquid, a Defi ecosystem, aims to create a bridge between Defi and e-commerce. It will be an “Amazon of Defi” online shopping platform by doing this. Uquid strives to offer decentralized finance solutions to access e-commerce via use cases like Shopping Mining, Shopping Staking, and automated Shopping Making.

Another fantastic project is Elinext, a decentralized Ethereum e-commerce platform. Ekinext allows users to items via an android app and pays with ether. Moreover, only administrators can add or remove items to this online store via the web admin panel. 

Cryptorefills is another shopping site that allows you to make payments with bitcoin. The platform recently incorporated polygon, interoperability and scaling framework for designing Ethereum-compatible blockchains. As a result, it helps minimize the high gas fees and slow verification time for gift and mobile tops purchases made with digital assets. In addition, it is among the first platforms to use an ETH2 solution for accepting e-commerce payments. This partnership has enabled faster and minimal charge transactions for users shopping with ETH and other ERC-20 tokens. 

Conclusion

With so many benefits coming from the integration of blockchain in e-commerce, you may wonder why business owners are not adopting this partnership. Yes, notable investors are still looking away from crypto. Here is why

Firstly, blockchain is still in its infancy. It will take a while before people fully understand how the blockchain world runs. Also, blockchain is not user-friendly compared to credit cards. 

Secondly, scaling issues have dragged behind blockchain adoption. Scalability causes clogged networks and increase transaction fees. Currently, Ethereum can process only 15 transactions per second. Unfortunately, this isn’t enough to serve millions of users. 

Thirdly, volatility has been an issue facing crypto markets since it began. High volatility creates enormous risks for business owners and investors. 

Also, many crypto users see it as an investment if you ask around. After all, who is willing to spend his digital assets set to increase their fiat value?

So what is your take on e-commerce blockchain?

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