Cryptocurrencies have changed the way digital transactions are performed. Now, thanks to bitcoin and many other digital currencies, people have a way to send/receive payments without the need for a central entity like a bank. This has been possible because of the revolutionary technology that powers cryptocurrencies. Blockchain is how cryptocurrencies can be sent to anyone, anywhere in the world over a highly secure decentralized network free of middlemen.
E-commerce is one of the major industries to have been impacted by the blockchain evolution. Not just transactions and digital payments, but everything from streamlining operations to order tracking and supply chain transparency, blockchain is revolutionising the way e-commmerce works.
Here are the top 10 ways in which blockchain can benefit e-commerce.
1. Increased Efficiency
Blockchain can help increase the overall efficiency of e-commerce operations. From streamlining operations to automating the tracking of orders, delivery, etc. using smart contracts, regulating third parties and managing a decentralized database of transactions, everything can be more efficient and faster.
2. Improved Security
Blockchain is a data transfer network created with a focus on security. Each and every transaction and record on the blockchain is encrypted and stored in a continuous chain of transactions. Blockchain records are immutable. All in all, it is very secure and nearly impossible to penetrate through.
3. Faster Transactions
Because blockchain removes middlemen, the transactions do not have to go through third parties and are automatically executed by code-based smart contracts in practically seconds. Both local and international payments on the Libra blockchain are super fast.
4. Trust & Transparency
Another benefit of blockchain in e-commerce is improved transparency, as all transactions including payments are recorded in a public database and can be checked by anyone. Also, customers can easily track the entire product lifecycle from manufacturing to packaging and delivery. This helps build user trust in the system.
5. Efficiency in Supply Chain
Bigger the e-commerce company, the larger and more complex the supply chain, which will reduce transparency for end-users. But, no more. Blockchain can efficiently handle any e-commerce system of any size and make the supply chain efficient by streamlining everything from intermediaries to payments and invoicing. This both reduces the operation cost and increases efficiency.
6. Lower Cost
Blockchain will, of course, help reduce operational costs for e-commerce businesses by reducing the need for middlemen. Since there are no third parties, there will be no need to pay additionally to anyone. Moreover, by streamlining processes and all parties of the supply chain, it will ensure high efficiency and low operational cost.
7. Easy & Quick Global Payments
Blockchain will make it possible for every online consumer to make payments globally to any merchant in the world with an app on their phones. The payments on the blockchain are faster and cost-effective compared to traditional methods. Moreover, it will enable e-commerce operators to serve a global audience.
8. Expanded Reach
Small businesses looking to expand their reach beyond regional or geographical boundaries will benefit the most from the inclusion of blockchain into e-commerce systems. They can use a blockchain-powered e-commerce platform like Libra Ecosystem to sell their products/services in the international market with easy & fast payments and very low transaction fees.
9. Verified Reviews
Reviews are a crucial part of any online business. While positive reviews can help build your business reputation and get you more customers, negative feedback can practically destroy you. Blockchain’s transparent system can help ensure all reviews are shared by genuine customers and can verify reviews before posting.
10. Improved Experience
All in all, a blockchain-based e-commerce system can make things easier for both customers and e-retailers by eliminating unnecessary people and processes from e-commerce transactions and ensuring secure and fast online shopping experiences for everyone.
