Blockchain implementation in marketplaces and online stores

Blockchain technology is playing an increasingly important role in the global economy, and the e-commerce sector is no exception. Currently, tens of thousands of companies around the world allow customers to pay with cryptocurrencies. But cryptocurrency is not the only opportunity that blockchain provides for businesses.

The benefits of blockchain in e-commerce range from faster and cheaper business processes to greater data security and improved customer experience.

Diving into topics such as blockchain technology and its use in e-commerce can be complex and confusing for non-specialists, so it needs to be explained in simple terms.

So what exactly is blockchain and why should retailers pay close attention to it?

Although blockchain has been around for a long time, there is still a lot of confusion about what it is. Although the blockchain is closely related to bitcoin, it is not a type of cryptocurrency. It’s also not a programming language. This is new technology.

Blockchain is essentially a completely secure ledger that keeps a record of every transaction made in a particular location, and which is stored on computers with special software. Blockchain technology allows users to exchange digital assets and store them securely. Based on it, you can create applications for processing payments, finding products, and customer service.

Blockchain (literally a chain of blocks) consists of individual records, called blocks, linked to each other in a specific sequence. This blockchain is essentially a database that is shared across a network of computers, also called nodes, or nodes. These nodes verify and validate digital transaction data from one network user to another.

Since the blockchain is not controlled by a single computer and does not have a single point of failure, all records can be viewed by the entire network. This means that the data entered into the blockchain cannot be deleted, changed or corrupted.

Since blockchain makes all online financial transactions more secure, it is a win-win for both sellers and buyers. But it also includes many other benefits, namely:

• Increased security.

Data leaks and fraudulent transactions are a major concern for e-commerce retailers. Blockchain technology allows trusted identities to be verified by multiple trusted parties and provides the highest level of security for customer databases and CRM systems.

• Cost savings.

One of the big benefits of the technology is that it allows retailers to combine services such as payment processing, inventory management, product descriptions, etc. in a way that reduces the cost of maintaining separate systems.

And since cryptocurrencies can be sent instantly, there is no need to go through banking systems. This reduces the fees charged by banks for issuing or acquiring funds, or the fees charged by credit card companies for processing payments.

• Easier and faster transactions.

Because blockchain transactions are mostly instantaneous and do not go through traditional banks, there are no delays in processing payments or pending transactions. Purchases can be made instantly, which means faster order fulfillment for customers.

• Improved business processes.

Blockchains can store more than just transaction data. They can store smart contracts that can automate tasks based on set rules and if-then operators such as automatic payments or inventory management.

For example, you buy a smartphone online and deposit with cryptocurrency. You receive a receipt stored in a virtual contract. The seller ships the phone to you by the specified delivery date, and if it doesn’t arrive on time, the blockchain refunds your deposit. If you receive the item, the blockchain will transfer your full payment to the seller. The blockchain can also store digital records such as customer receipts and warranty information, making it easier to verify ownership and warranties, not to mention reducing paper records.

• Reduce the cost and complexity of supply chain management.

Blockchain in the e-commerce supply chain means merchants can cut down on the paperwork and manual work involved in shipping.

Bills of lading can be placed on the blockchain at every stage of the supply chain, reducing administrative time/cost and making it easier to track shipments or verify product and pallet weight information. And for products with expiration dates or certificates of authenticity, blockchain can guarantee the validity and quality of stocks and reassure customers that they are getting what they paid for.

• Expanded access for global consumers.

Blockchain and cryptocurrencies allow you to bypass banking intermediaries, providing access to a wider range of e-commerce retailers.

Although blockchain technology is still relatively new, there is one important reason why blockchain-based e-commerce platforms are gaining momentum: they benefit both merchants and consumers.

Industry experts agree that while the potential of blockchain technology is huge, it is still in its very early stages of adoption. Blockchain will become an integral part of the new ecosystem of finance and e-commerce.