Being one of the most talked-about technologies in business, blockchain has the potential to influence major change and create new opportunities for businesses around the world. Its implementation in e-commerce will help businesses save costs, improve efficiency, and boost performance.
Bitcoin may be the most well-known example of blockchain technology, but mainstream businesses are increasingly becoming adopters of the technology themselves. Spotify, for example, has acquired Brooklyn-based blockchain startup, Mediachain Labs, whose team will be working on developing better technology for connecting artists and other rights holders with the tracks hosted on Spotify’s service. Just this month, Strike partnered up with Shopify to provide merchants on the platform with a cheaper and faster way to accept U.S. dollars using Bitcoin technology.
But blockchain goes beyond crypto payments; the technology is complex, but the idea is simple. Blockchain is a vast, global distributed ledger running on several devices and open to all, and it’s where not just information but anything of value - money, deeds, music, scientific discoveries, votes, etc. - can be stored securely. Consider the music industry as an example - companies like Mycelia have developed songs with smart contracts that enable artists to sell directly to their consumers without the need of the middleman, a.k.a, the label.
There is, therefore, strong evidence that blockchain could transform business, government, and of course, e-commerce. It’s no wonder that so many are adopting it at an ever-growing, rapid pace. Given this, blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 39 billion U.S. dollars in size by 2025. This might just accelerate thanks to e-commerce or “c-commerce” marketplaces like exeno making the transition to cryptocurrency easier and more user-friendly.
How Blockchain is disrupting the e-commerce space
As blockchain technology now gains traction in the global economy, businesses are beginning to realize how its features can solve some of the biggest problems the e-commerce industry is facing.
Growth & Scaling
Decentralized transactions, with their borderless feature, allow merchants to expand their reach and grow their businesses to heights previously restricted by central authorities. Blockchain technology also allows third-world countries to trade online, as consumers and merchants will no longer need an intermediary to process their payment requests thanks to Bitcoin's peer-to-peer technology. This will lead to a boom in online merchants and massive growth for existing online stores, thanks to their increased reach.
The nature of a decentralized ecosystem is such that it is impossible to alter the data, thus removing the possibility of any fraudulent transactions. Additionally, due to self-executed smart contracts, business partnerships strengthen and efficiency increases. It creates a trustless environment where users need not know or trust each other to enter into an agreement since any manipulation of the data will be rejected by other members in the network.
Companies like Amazon are facing a huge problem of counterfeit and substandard products due to difficulty in regulation and selection of vendors, leading to increased returns and customer dissatisfaction. Blockchain technology enables the verification of all information and claims associated with a product. This would help consumers check the purity and quality of the products and thus build trust and loyalty.
How will blockchain enhance customer experience?
There are several processes and players involved in payment to the vendor; blockchain eliminates the role of the central authorizing body and simplifies the whole process of payment. As a result, the transaction can take place in almost real-time, lowering the operational cost.
The emergence of cryptocurrency has brought about the possibility of a universal currency, allowing consumers and businesses to transact all over the globe without needing to worry about exchange rates.
Passwords and authentication requests are proving to be limited in their effectiveness in protecting data, which means it's easy for anyone to login into a website like Amazon or Etsy and steal a user’s credit card information. Blockchain technology can easily replace this system with a digital identity that is safer and easier to manage. In such a case, digital identities will be based on a uniquely random set of numbers assigned to each user on a blockchain network.
Modern, Up-to-date Shopping Experience
Customer loyalty programs require an upgrade; e-commerce sites across the board are seeing low redemption rates, few customer incentives, and data breaches. With blockchain, however, users can receive loyalty tokens that are interoperable across many programs, and they never expire or lose value, unlike traditional reward points. The switch to c-commerce also opens up greater access for global customers and potential for growth for small businesses.
Growing use-cases of blockchain in e-commerce
As established, blockchain technology use cases go beyond finance, aiding in solving many of the pressing issues e-commerce has been facing lately. Along with providing added security, fixing the issue of exchange rates, and protecting against counterfeit goods, among others, blockchain can help with inventory control and supply management too.
When operators use the blockchain to monitor the supply chain, they can prevent suppliers from replacing certain items while also fostering openness throughout the process. Additionally, blockchain technology allows online businesses and their consumers to save product invoices and warranties. Often, the point of frustration for consumers is when they can’t find their paper receipt to substantiate the warranty coverage for their device, but with blockchain technology, buyers and sellers will be able to conveniently obtain receipts and warranty data and authenticate evidence of ownership.
The blockchain revolution is a substantial one, and it is perhaps not something everyone is ready to jump on board with. Some companies in the blockchain space, like exeno, however, are making the transition easier.
Their wide assortment of products, worldwide delivery, and simple user interface are already enough to entice online shoppers to make the switch to cryptocurrency. Their established payment gateways and acceptance of several different cryptocurrencies as payment just make the transition for new users even easier. The soon-to-come EXN coin will only tie the entire ecosystem together and provide users the opportunity to buy the local coin and make purchases using it. All this while their personal information and user data are kept protected thanks to blockchain technology.
There is no end to the possibilities when blockchain technology is combined with a powerful industry like e-commerce. The opportunities to grow and scale businesses, provide customers with added security in the registration and checkout process, and the ability to filter out counterfeit products already make it an attractive option for consumers concerned about privacy and a great shopping experience.
It is worth it to learn about this technology and invest so users may start enjoying the benefits, but no such platform exists that actively encourages people to start educating themselves on the possibilities. Luckily, exeno, with its marketplace and offerings, gives customers the opportunity to learn how incredible this technology can be. As more people join the platform, a c-commerce revolution will emerge and affect widespread change, disrupting the traditional giants in this space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice