Blockchain refers to a chain of different online transactions that are saved as one shared ledger across many computers on a certain peer-to-peer network with its origin in cryptocurrency. As e-commerce traffic increases and more people start shopping using cryptocurrency, many retailers are looking for ways to secure their transactions and enable the utilization of the new types of currencies.
Some people see blockchain technology as a solution to these two challenges and even more. But blockchain has applications for supply chain management, online retail, digital IDs, and money transfers, among many other areas. Here are the different ways in which marketplace blockchain is bringing major transformation in eCommerce.
1. Boosting Customer Loyalty
Utilizing blockchain provides you with accurate and instant data integrity. It’s mainly applied to data-reliant client loyalty programs. The nature of blockchain technology guarantees data capture at each stage of client interaction. That will assist businesses in improving customer modeling and qualitative analysis capabilities. Retailers can make use of blockchain technology for client loyalty schemes.
They offer consumers the alternative of keeping ubiquitous loyalty points in a single wallet instead of accumulating them in various isolated membership programs. That way, consumers will become more engaged with the loyalty programs since they can easily redeem and track rewards and points. Technologies such as artificial intelligence and big data analysis also assist in creating customized communications for every customer.
Blockchain technology is one of the most secure online platforms out there today. Its Distributed Ledger Technology offers excellent security for many online database platforms, which makes it perfect for application in eCommerce.
Currencies such as Bitcoin operate just like cash because they do not require a customer to expose any sensitive data. Since data theft and cyber-attacks have significantly increased, there is an unavoidable risk of losing your customers’ data. Therefore, implementing blockchain technology is one of the best ways of solving these challenges.
3. Decentralized Transactions
Electronic commerce cryptocurrencies enable all the purchase of the marketplace to take place without charge backs, agents, and unreliable exchanges, unlike conventional marketplace payment systems.
Marketplace blockchain technology offers the formation of a white list that’ll incorporate each genuine consumer around the world. Moreover, by merging cryptographic types of money, the eCommerce industry is most likely going to draw in current graduates who support peer to peer exchanges more than the other age-groups.
4. Replacing Normal Contracts With Smart Contracts
The other place where blockchain technology can prove matchless is agreements. eCommerce blockchain technology can be implemented automatically and only needs the verification of all parties in the contract.
The terms of the agreement must be met before a smart eCommerce contract is created; otherwise, payments might be retained. Unlike conventional agreements, smart agreements are stored on the blockchain and automatically execute only when predetermined terms are met.
5. More Transparency In The eCommerce Marketplace
Currently, many big retailers are facing a backlash due to the charges for the absence of transparency. For existing eCommerce programs, that is a serious concern. Therefore, adopting blockchain in the eCommerce platforms can create a decentralized environment where all wrongdoings, whether on the part of the merchant or business, can be effectively monitored.
Moreover, a transparent eCommerce market will also facilitate transaction management in an efficient and frictionless manner.
Using Blockchain technology can revolutionize the eCommerce marketplace. Even though it might take us some time to see these implementations, the changes are on the way. If you’ve got an idea but don’t have the technical expertise to create your software, you can look for a reputable IT company that will do it for you at affordable rates.
Apart from being considerably cheaper and faster, blockchain technology facilitates most of the activities that the current commerce systems agree to without leading to third party interferences, making it perfect for retailers.
Finally, Blockchain technology can be regarded as the backbone of businesses in the electronic commerce marketplace.
Blockchain Magnets provides general information about financial products and services that should not be construed as financial advice or recommendations of particular financial products or services. It is advisable to obtain appropriate advice from an appropriately authorised financial planner or investment adviser before making any investment decisions or before purchasing financial products or services. Read more here .