How to improve E-Commerce Experience with Blockchain
Using blockchain technology in e-commerce has several benefits for both retailers and customers. Multiple processes can be streamlined simultaneously, which is beneficial to stakeholders. Let's examine the several benefits of establishing a blockchain eCommerce platform.
1. Increased Security
Blockchain technology is better than all other techniques because of the security it provides by design. When customer information is stored on blockchain digital ledgers, there is no way that it may be compromised or used maliciously. The client is the only proprietor of their data when it is stored on the blockchain. Customers have the option to choose which e-commerce development company they'd like their information shared with.
2. Fraud avoidance
There is a risk that phishing attempts will damage consumers' faith in online marketplaces. Here, hackers steal user credentials and utilize them for a wide range of fraudulent actions, such as making fraudulent online purchases, selling counterfeit items, and making illegal purchases across international borders.
Blockchain, in large part, helps with the control of these kinds of fraudulent activities. The platform's immutable ledger ensures the legitimacy and openness of all transactions.
3. The Uniqueness of the Item
Since it will be difficult to edit or remove data from the distributed ledger, consumers will have more faith in the merchant's product description. End-user confidence in products is boosted by increased transparency in the supply chain technology. When purchasing, customers can trust the merchant's given product details.
4. There are no intermediaries.
The purpose of blockchain technology is to eliminate third parties. The shopper provides their details to the merchant, and the merchant receives money from the buyer. It improves the procedure's safety and efficiency by leaps and bounds. The transaction time for both the money and the reimbursement is nearly instantaneous.
5. Enhanced Tracking of Shipped Items
Online shopping is only possible with logistics. Retailers and platforms relying on third-party courier delivery providers have encountered serious problems due to ineffective inventory tracking. In this application, blockchain's magic lies in facilitating enhanced logistics tracking, making it simpler to ascertain a shipment's whereabouts at any given time.
The live implementation of Blockchain technology for e-commerce
Popular online retailers are already using blockchain technology to enhance the shopping experience for their customers. Take a look at these actual usages:
1. Blockchain Overseen by Amazon
When discussing virtual malls, we must inevitably bring up Amazon. The platform's advanced capabilities and widespread use have made it the industry standard. The firm has persistently worked to enhance the efficiency of online shopping, whether through augmented reality and virtual reality better to serve customers or blockchain technology in the supply chain.
Since clients desire more details about where their delivery is at all times, the corporation has understood for some time that tracking and tracing pose certain difficulties. Paper documents and isolated data silos contribute to the inefficiency of the present supply chain.
For this reason, Amazon is gearing up to use Blockchain technology extensively across its supply chain. The customer can check on the development of their purchase at any moment, even as it is being manufactured. The digital ledger will be utilized by all stakeholders, including but not limited to producers, regulators, logistics service providers, retailers, wholesalers, and end users. Since there is no one in charge, things will likely go wrong. Instead, everyone involved will trade the most up-to-date information they have on the product at their disposal. This gives the buyer complete transparency into where their stuff is.
2. Libra Cryptocurrency to Be Presented by eBay
eBay has been a staple of the Internet auction scene for decades, and the site consistently rolls out new features. Recently, the company has been cooperating closely with the Libra Association to roll out the Libra Cryptocurrency to the masses. The new digital currency is expected to be employed in various markets.
With Libra Cryptocurrency, the company hopes to make a trusted digital currency to enhance e-commerce greatly. When this cryptocurrency is fully implemented, consumers can buy goods from sellers worldwide and pay for them in the currency of their choice. Deals will be more profitable for businesses since transaction costs will be much lower than they are now.
3. The Problem with Using Cryptocurrency in Online Shopping
While blockchain technology is still in its infancy, it shows enormous promise for enhancing the efficiency and effectiveness of online purchases. There are a lot of problems with using cryptocurrency for online purchasing. The current challenges we confront include:-
4. Insufficient uptake
Blockchain's efficiency can only be fully realized with the backing of all participants in a process. As an example, suppose a customer asks for real-time order tracking. The next step is for all involved parties—suppliers, manufacturers, warehouse managers, wholesalers, and retailers—to update the relevant blocks on the blockchain to reflect the new information. However, blockchain technology is still at the beginning of its widespread adoption. The technology can only deliver its promised benefits if it is broadly embraced.
5. The Soaring Price of Blockchain Technology
There will only be a way to implement blockchain technology if the company's owner is willing to commit large amounts. Even though some blockchain solutions are free, the skills and experience of software engineers who can design blockchain applications are crucial.
6. Scalability
Ethereum can process between fifteen and twenty transactions per second, while Bitcoin can only manage three to seven. That's why widespread adoption is necessary to boost blockchain's performance before massive corporations can use it. Limits on the number of concurrent users pose a serious challenge to the mainstream adoption of
blockchain technology for online commerce.
7. Legislation and rules
Particular businesses have received a lot of negative attention, and several countries have banned or severely restricted the usage of cryptocurrencies. Bitcoin has been illegal in several countries, while attempts at regulation have met with varying degrees of success. Therefore, these rules and laws must be drastically altered before
eCommerce platforms becomes a worldwide phenomenon.
8. Low Availability of Labor
As more people learn about NFTs and the blockchain, the demand for skilled workers has surged by a factor of three. The situation has strained the job market. Some companies offer annual salaries of over $1 million to attract and retain highly skilled workers in a market where talent competition is severe. The lack of competent blockchain expertise further complicates an already difficult deployment process.
9. Various Difficulties
The use of blockchain in e-commerce has challenges and barriers, such as a need for standards, interaction with legacy systems, interoperability, important privacy problems, etc.
The Potential Future Role of Blockchain in E-Commerce
In 2021, the blockchain market was estimated to be worth $4.98 billion, and by 2026, that number is expected to have increased to $67.385 billion. The data point to a CAGR of almost 68.4 percent for almost a five-year period. Undoubtedly, the corporate sector is learning about blockchain technology and how it may improve the customer experience. This means that - Blockchain technology's decentralized nature makes it ideal for storing and sharing customer information in the future.
Since cryptocurrencies may be used as a form of payment anywhere globally and don't need an intermediary, they may gain popularity.
It has been proposed that blockchain technology be used to track and monitor packages in real-time, providing instantaneous information on their location.
Customers will feel more comfortable making costly purchases online thanks to blockchain's data integrity authentication.
Blockchain technology will drastically speed up the process of sending and receiving money.