It’s hard to have missed the recent hype surrounding cryptocurrencies, bitcoin, and blockchain, as they were all the rage in 2017. Accepting cryptocurrencies like bitcoin as a payment method is only the visible tip of the trend iceberg because the underlying blockchain technology can do much more than that. This includes areas such as accounting, business processes, data security, and logistics. This can, of course, make a business owner think about how blockchain will impact their business? This is exactly what we will see in this article.
What is Blockchain?
Blockchain is a data collection technology that can be graphically compared to a ledger. However, unlike a traditional book, it cannot simply be torn out of the page, as the written data remains in it forever and cannot be deleted. This distinguishes the blockchain from any other means of collecting information about goods since such a solution is a guarantee of transparency, which, in turn, inspires confidence. Therefore, both the producer and the consumer benefit from this. That’s why blockchain technology is a perfect fit for eCommerce business
It is a digital, decentralized, peer-to-peer block database (no central computers) that contains detailed, chronologically structured, and immutable information related to a transaction. Here are examples of data that can be found in the blockchain: amounts, dates, or participants in the transaction, certified by special electronic signatures.
A blockchain consists of blocks that are connected to each other and contain information. New blocks or “links” are sequentially added to an already existing chain when a transaction is made. This creates an unchanging history of all actions related to this product. The use of blockchain technology guarantees access to the full history of transactions associated with a given transaction, including the dates when the relevant actions took place. Each new action, such as a change in product ownership, will be recorded in a digital ledger.
Blockchain Case Uses in eCommerce
International transactions are often done through third-party platforms, and while there are solutions like PayPal, they’re far from perfect. One company trying to create a solution to avoid going through these third-party networks is the Request Network platform. This blockchain-based platform aspires to create a decentralized place that facilitates fast and secure transactions for B2B, B2C, and C2C interactions. Additionally, the Request Network wants its platform to provide easy and automated methods for invoicing, accounting, and auditing. Using blockchain technology, their platform can disrupt the industry for financial transactions by providing high standards of security, reduced costs for performing transactions, and a satisfying and easy user experience. Using PayPal incurs high fees compared to many cryptocurrencies. Cryptocurrencies have the technological capability to provide solutions for both and can remove the need for a third party like PayPal. Cryptocurrencies can potentially be better than current digital wallet services for the following reasons:
- Instant transactions with low fees
- Anyone can access it
- No need to provide personal and financially sensitive information to a third party (PayPal, banks)
Another disruptive function of blockchain technology is that it enables incorruptible visualizations of supply chains. We’re not there yet, as blockchain still requires mass adoption, but once that happens, a product’s entire supply chain can be seen directly with a simple click. Whether the product is authentic, organic, fair, or contains chemicals, everything can be directly seen on its blockchain. As blockchains are incorruptible, this enables transparent and comprehensive supply chains through which consumers are fully informed about the products they consume.
A major flaw in the way we currently store data is that it is stored in a central location and controlled by a central party. Data is the new oil and cybercriminals are eager to steal these huge databases. Cybersecurity requires large capital investments and strict regulations, which discourage revenue streams. Since blockchains are decentralized, data is also decentralized. Yes, cybercriminals can hack individuals, but they will only steal the information of the individual they are hacking. It is practically impossible to hack an entire blockchain.
Another way blockchain technology can help your e-commerce business grow. A blockchain can create a secure, efficient, and fraud-free backup system for any business. Blockchain applications can be used for any of the following tasks:
- Inventory control
- payroll system
Thresholds, limits, and timestamps can be added to blockchain applications to automate management processes. This will significantly reduce the overhead of running your business.
Mobecls team provides a wide range of eCommerce development services, starting from SEO and design to custom functionality development. Our 10+ years of Magento expertise allow us to provide unique eCommerce solutions taking into account industry and business specifics. If you want to take your business to the next level, we’re ready to help!