Potential Impact of Blockchain on E-Commerce Sector

Potential Impact of Blockchain on E-Commerce Sector

By: Retail CIO Outlook | Tuesday, November 06, 2018

Blockchain innovations in various industries including ecommerceThe potential of the blockchain technology is immense and has brought transformation in all the sectors of the economy. It has the power to eliminate a huge amount of record-keeping, can save money and revolutionize IT in ways which were not discovered since the birth of the internet and therefore the hype around this innovation is real.

The blockchain is welcomed in the different sectors of the economy ranging from the finance industry to the energy sector and from logistics and health sector to the gaming and e-commerce industry. This sector claims to have the highest impact not only on the organizations but the consumers’ lives as well.

There are numerous products offered by the e-commerce industry, but with the growth, large e-commerce firms like Amazon, Alibaba, eBay, the problems related to e-commerce are beginning to emerge. The issue relates to payments, supply chain management, and client satisfaction. Blockchain technology could be the answer to these problems. Let’s have a look at the different issues faced by the e-commerce industry and how can it be solved through blockchain.

1. Payments

The payment industry will get benefit from the blockchain technology. Blockchain e-commerce projects like Request Network and ECoinmerce are aiming to create blockchain-based marketplace using a fast and secure transaction for any e-commerce business model. Request Network plans to provide low-cost financial sales, high standards of security and fantastic customer experience.

2. Supply chain management

The e-commerce world is facing problems of supply chain management, and blockchain technology is probably the only solution that can be adapted to resolve this issue in the fast-moving e-commerce business. A reliable blockchain network will result in a transparent movement of a supply chain where the buyers can see the order flow of their products thereby increasing their confidence.

3. Data Security

E-commerce industry has enormous amounts of data which is collected either from the customers or retailers on any given e-commerce platform. Customer’s data is stored on centralized servers which can be accessed by cyber actors and due to this many e-commerce companies have lost a substantial amount of data. However, with the blockchain technology, such threats are impossible as these platforms are decentralized.

4. Transparent marketplace

Many complaints have been put forward against the giant e-commerce stores by the retailers. Amazon’s transparency concerns have been a significant issue so far as they have been blamed for cutting off direct contact between customers and sellers and at times disabling the merchant’s page with little or no explanation. Blockchain-based e-commerce platform like Bitboost facilitates online transactions amid the buyers and sellers in a frictionless and transparent manner.

See more: Top Blockchain Technology Companies

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