What’s Blockchain Technology?

Blockchain is just a decentralised digital public ledger for tracking economic transactions. It’s designed to record not only financial transactions but exactly what goes in it. The best feature of a Blockchain is so it allows to see user’s holdings and the transactions that they have carried out over the system publicly.

Moreover, in addition, it conceals the identity of a user via powerful cryptography. The decryption of the cryptographic code requires a long and challenging calculation, thereby, rendering it the safest way to transact money.

Challenges in the e-commerce Sector

Blockchain technology is transforming the ecommerce industry by decentralizing the control and cutting the existence of middleman from the landscape. But, before exploring the potential of Blockchain technology for e-commerce industry, let’s dig into the present challenges that the e-commerce industry is facing.

High Costs- Among the major pain point of an owner in the original ecommerce business design may be the involvement of a middleman, who removes an excellent share of money on every purchase. The seller has to pay for the transaction processing fee for completion of every transaction.

Uncertain Security- Protection of buyers’ data is another key concern for such businesses. The device needs to get the trust of these customers and have to make sure them that their personal and financial data is safe. The current state of the ecommerce industry fails to offer foolproof security to the users.

Time consuming- E-commerce model include an array of operations like supply chain, logistics, payment gateways etc. To manage each one of these operations e-commerce industry has to accumulate manage this intermediates everyday. This consumes a lot of time to complete the whole process.

How Blockchain will Drive the e-commerce Industry in Future

Blockchain technology for e-commerce is just a boom for not only the sellers but also for the buyers. Several challenges which can be addresses by introducing Blockchain in e-commerce industry are as follows:

Cost Reduction- With Blockchain, e-commerce industry can depend on the Blockchain technology for managing inventory, payment processing, product database and other business activities. This results in spending less on maintaining systems or hiring IT support teams to keep up them. Cryptocurrencies like Bitcoin, Ripple etc. will cut-down the fees that 3rd party institutions like banks charge during transactions.

Cyber Threats- Despite of using a secure transaction network, the e-commerce industry is definitely at a danger of losing their customers data and money as a result of unwanted cyber attacks. Blockchain technology is just a perfect solution for resolving these challenges. It offers highest level of security by utilizing distributed ledgers for managing the e-commerce database management systems.

Fast processing- Blockchain technology for e-commerce is removing the dependency of middleman, manpower and 3rd party organizations from the e-commerce model. It saves a lot of time consumed in the general process ranging from inventory managing, to order placing to delivering at users door step.

Conclusion

These challenges have already been bothering the sellers since the beginning. Thus, integrating Blockchain Technology to e-commerce sector can actually be recommended for your system. Here comes the necessity of Blockchain technology for e-commerce industry which is capable of resolving all of the challenges alone.

Many e-commerce companies have started purchasing Blockchain technology to run their business smoothly. Your day isn’t far when Blockchain technology will penetrate the whole e-commerce industry.