6 ways blockchain can impact e-commerce

23 April, 2018

The biggest problems plaguing e-commerce sellers and consumers can all be improved or eliminated using blockchain technology. The following are just a few of the benefits blockchain can offer in the world of e-commerce:

  1. Payment Automation

The decentralized nature of blockchain facilitates operational efficiency, which can streamline payment processing. Smart contracts can regulate payment processing and assure customers that payment will only go through upon successful delivery of their purchase. With this approach, middlemen can be eliminated entirely—like the 2.9 percent in credit card fees for online purchases—making online shopping much more cost effective.

  1. Supply Chain Transparency

With every transaction recorded on the shared, immutable ledger of the blockchain, there’s complete transparency. Customers can see the entire supply chain information for any item they’ve purchased, for instance. Ultimately this leads to increased customer loyalty and trust.

  1. Loyalty Programs

Most loyalty programs are tied to specific brands or companies and don’t allow for immediate use. With cryptocurrency, tokens can be added immediately and directly to any digital wallet—and can be spent anywhere, anytime. Customers who agree to view commercials and contribute their personal data could be rewarded with cryptocurrency micropayments. Referral and affiliate programs could also be easily and securely managed through smart contracts.

  1. Data Security

Encryption and security are a huge selling point of blockchain. Consumers can feel confident that their personal information will not be hacked after using an e-commerce site that employs blockchain in payment processing.

  1. Product ID Consistency

Product IDs for specific products could be standardized across every e-commerce site through the blockchain. Consumers comparing product prices on Amazon and Newegg would know that the two laptops they’re looking at are indeed the exact same model.

Conclusion

E-commerce depends on electronic transactions, consumer data protection, and a complex array of logistics and processes. It seems only natural that blockchain technology—designed to excel in these areas—would be a great boon to the industry. Eliminating middlemen and processing costs is very appealing to e-commerce sellers, since the margins are thin and competition is fierce. Data security, loyalty programs, and ease of payment appeal to consumers as well, so blockchain benefits all parties involved.

 

Image via Flickr, by Marco Verch.



How Blockchain can help preserve our cultural heritage

1 August, 2019


When Technology Meets Humanity

14 July, 2019


Deep dive: What is Blockchain?

8 July, 2019


Report: Blockchain spending to hit nearly $12B by 2022

18 June, 2019


Is Blockchain the Next Internet?

10 June, 2019


Company Update: Announcing the Launch of Legacy Locket

4 June, 2019



 

 

Pin It on Pinterest

Please fill out this form to get Whitelisted for the Token Sale.





Genuine photograph of the investor's official document such as a passport.


Are you an accredited US investor?


I certify that I will be the holder of these tokens.


I certify that I'm not included in any PEP lists, sanctions or other watchlists.