What is Blockchain Technology? Blockchain technology is a decentralised digital public blockchain that tracks economic transactions. It records financial transactions as well as everything that goes into it. A Blockchain allows users to view their holdings and see the transactions they have made over the system publicly. It also hides the identity of users via strong cryptography. It is the most secure way to transact money because it requires a complex and lengthy calculation to decrypt the cryptographic code.
It is changing the ecommerce industry. It decentralizes control and eliminates the need for middlemen. Before we explore the potential of Blockchain technology in the ecommerce industry, let us examine the current challenges facing the ecommerce industry. High costs – A seller who uses traditional ecommerce to make a sale is often affected by the involvement of a middleman. This man takes a large percentage of every sale. Each transaction must be completed by the seller, who must pay the transaction processing fee.
- Uncertain Security- The protection of buyers’ data is a major concern for these types of businesses. Customers must trust the system and be assured that their financial and personal data are safe. The current state in ecommerce does not provide security that is foolproof.
- It is time-consuming – E-commerce models include a variety of operations such as supply chain, logistics and payment gateways. E-commerce industry must deal with these intermediates every day to manage all of these operations. The entire process takes a lot of time. E-commerce is booming not only for the sellers, but also for buyers.
- Cost reduction- The Blockchain technology can be used by the e-commerce industry to manage inventory, payment processing, product databases, and other business activities. This allows you to spend less on systems maintenance or to hire IT support teams. Cryptocurrencies like Bitcoin, Ripple etc. Third-party institutions such as banks will not charge transaction fees.
- Cyber Threats- Even though e-commerce uses a secure transaction network to protect their customers’ data and money, there is always the risk that they will lose their customers’ data and money to unwelcome cyber attacks. These problems can be solved with blockchain technology. Distributed ledgers are used to manage the e-commerce database management system. This provides the highest level of security.
- Fast processing- Blockchain technology is used to speed up e-commerce transactions. This eliminates the need for middlemen, manpower, and third-party organizations. It reduces the time required to manage inventory, place orders and deliver to customers’ doorsteps. These issues have been a problem for sellers since the beginning.
Integrating Blockchain Technology to the e-commerce sector is a great idea for the entire system. This is why Blockchain technology for ecommerce industry is needed. It can solve all the problems. Many e-commerce businesses have already begun investing in Blockchain technology to help them run their business smoothly. Blockchain technology is poised to revolutionize the entire e-commerce sector.