Blockchain Basics for E-Commerce
The e-commerce industry is witnessing tremendous growth in the global market whereas the Blockchain marketplace is becoming a stable economic ecosystem in its own way. To be precise, both E-commerce and Blockchain are all about transactions and conversions. While E-Commerce relies upon both of them, Blockchain – the real game changer, empowers them to be made quicker, more secure, and with more updated features.
Blockchain and Online Sales
Essentially, a Blockchain is a shared and distributed record/structure that is capable of storing and sharing digital assets, both manually and automatically as well. Moreover, Blockchain technology is capable of handling the entire user experience virtually, including product searches, payment modes, and post-sale technical support.
Types of Blockchain for E-Commerce
Blockchains are almost identical to a simple database but with much more sophisticated software that connects them with the outside world. However, all Blockchains are not the same. When things are analyzed from an E-commerce perspective, four types of Blockchain are the best fit when compared to the other solutions available in the market.
Bitcoin is the first and most recognized cryptocurrency, and the reason behind the Blockchain technology is to get developed in the first place. Bitcoin is currently accepted by many MNCs like Microsoft, Tesla, and Shopify. Recently there has been an increase in the number of stores accepting bitcoin as payment. You could explore a huge cryptocurrency market by adding Bitcoin to your payment modes and more importantly, it opens a unique method to start using Blockchain.
Like Bitcoin, Ethereum is a cryptocurrency, yet with specific advantages and disadvantages over its more established opponent. Ethereum isn’t as broadly acknowledged as bitcoins, however, the Ethereum system can host different types of cryptocurrencies, and is the most well-known platform for hosting smart contracts. It can be considered as the best platform for E-Commerce websites that require an independent platform to perform full-fledged Blockchain.
IBM does not offer its own cryptographic money, but rather it offers a vigorous stage appropriate for vast internet business Blockchains.
The most flexible Blockchain solutions are that custom-build for E-Commerce. Custom built Blockchain solutions can go to any extent as per your requirements, and can be more cost-effective to execute in the long run.
Advantages of Blockchain in E-Commerce
Cyber threats, stifling rivalry, and regularly changing user expectation are the realities a retailer has to face every day. E-Commerce websites that are currently successful are actually the ones who adapted accordingly with the challenges to strive the industry.
However, there is no dearth of E-Commerce solutions on the market; all thanks to Blockchain technology as it can able to solve a lot of key issues a retailer has to face. Let’s take a look at three of the best features a Blockchain has to offer for the E-Commerce industry.
Distributed Ledger Technology (DLT) offers the best norms in terms of security for online database platforms. However, there have been occurrences of vulnerabilities in smart contract, and no confirmed breaks in a major Blockchain framework.
Since one information break can cost an online retailer million in income and loss of market share, Blockchain offers a level of security that retailers can’t stand to manage without.
2. Coordination with Business Processes
The Blockchain is not restricted to process online payments. The main reason behind the growth of DLT is its capacity to interface with new and existing systems. For an E-Commerce seller, this means tie-ins between the online store and a large number of external and internal systems, processes, and accomplices.
By offering a common ledger that serves the organization, the online store, and other entities, there is a lot to explore and abundant opportunities wind up accessible for the seller that is only conceivable with Blockchain.
3. Cost Reduction
Cost reduction has turned into a buzzword that pitches for pretty much everything from software to socks, and Blockchain could convey its benefits. For instance, the capacity to integrate payment methods, stock management, images, and description, with different business forms implies fewer systems to maintain which helps in reducing the manpower and fewer administrative tasks to be performed.
Running a small online store 24/7 is a job for 365 days. Hence, the intensity of Blockchain empowers online sellers to invest more time and efficiency in running their business and less time to run their online store.
Applications for Blockchain in E-Commerce
The Blockchain E-Commerce marketplace is turning into a financial ecosystem in its own right. The E-Commerce sector is continuously growing and adopting distributed ledger technology (DLT), and with the help of such technology, the vendors can multiply the ways to serve their customers. Currently, there are some applications for Blockchain in E-Commerce.
1. Smart Contracts
Smart contracts are the most well-known feature of any Blockchain. Fundamentally, a smart contract is generally a small computer software that can be stored on a Blockchain, which can computerize certain tasks as per the guidelines.
The power of these exceptional block of code makes it simple to automate almost every E-Commerce process, authorizing staff to market and grow in their business.
2. Inventory Control
One application that can utilize smart contracts is inventory control. By collaborating smart contracts into the Blockchain, not only the products can be decremented from inventory like some standard shopping carts, but new stock can also be requested when predetermined thresholds are reached. Many such features can be automated to guarantee that an E-Commerce store never comes up short on products, and in the meantime, ensuring that abundant stock isn’t accumulated.
3. Product Description Database
Creating the description of a product and related pictures for the customers is a tedious and expensive part while running an online store. Blockchain enables this data to be effectively shared between the online store, the content managers and the vendors.
4. Loyalty Rewards Software
Thanks to the power and adaptability of smart contracts, customer loyalty reward programs can be fully automated in the Blockchain. Since the records of each purchase are stored within the chain, it is easy to have a smart contract offer a discount or rewards to the customers as they surpass certain spending limits.
5. Supply Chain Tracking
An online store can make or break and it depends on the reliability of the supply chain. The store operator plays a key role as he should be aware of the stocks in the pipeline and the time of arrival and most importantly to make sure that the vendors are supplying the exact products ordered. The issue of fraud may result in low-quality products being delivered, or even those with safety-related issues.
By utilizing the Blockchain to track the inventory network, E-Commerce businesses can guarantee that vendors don’t substitute items without notice, and that transparency is maintained throughout the procedure.
E-Commerce is quickly evolving and is becoming the storefront for merchandisers globally. Online selling is turning out to be the main medium to sell goods while Blockchain technology is slowly becoming the backbone of E-Commerce business. But to utilize the DLT offers, you require a specialist; and hence partnering with a qualified and experienced tech company is the most ideal approach to compete in the global market scenario.
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