Blockchain Has Transformed E-Commerce for the Better
Today, we live in a world that offers us access to digital currency blockchains. These blockchains enable us to embed currencies in a compelling decentralized network that essentially means that digital currency has no central power controlling your transactions. Blockchains enable you to form smart contracts to freely exchange financial value, encapsulating blockchain’s impact on e-commerce.
You can view an e-commerce transaction on blockchain as a direct agreement between a seller and a buyer. The entire network of validators verifies this contract. If there is a disagreement, such as the purchased goods not being at par or the wrong product being sent, this smart contract will automatically reverse the transaction.
To put it simply, blockchains are essentially creating a worldwide, decentralized network of creators, businesses, shoppers, and merchants who can capture the entire value of their transactions without having to pay extra or hidden fees to any intermediary force. It’s why e-commerce is largely considered to be one the largest use cases of blockchains, from the businesses’ and consumers’ perspectives.
Impact of Blockchain on E-Commerce
Here are some benefits that reflect the impact of blockchain on e-commerce:
Enhanced Credit Systems
Even in today’s tech-driven world, many people continue to face multiple challenges when it comes to ease of access to finance. Shoppers often have to pay high-interest rates to traditional financial service providers when taking out loans for big purchases. Moreover, they have to bear penalties on the rate for making late repayments. These challenges hamper potential buyers’ buying decisions.
However, cryptocurrency makes e-commerce transactions on blockchain pretty easy and convenient. @Pay has come up with a compelling solution for this conundrum. It works on the basis of a decentralized buy-no-pay-later practice that is rooted in helping the platform’s users side-step exorbitant credit card fees and any hidden or extra intermediary charges.
Users of the platform have the benefit of availing zero-interest credit. They can also pay for their e-commerce purchases in multiple tranches over an extended period of time. What’s more is that if a user pays timely, they are rewarded in cryptocurrencies for being a responsible borrower.
Secure Financial & Personal Data
Each shopping transaction that a buyer makes with a centralized authority requires them to give up their valuable financial and personal data, such as credit card numbers, passwords, name, phone number, email address, delivery address, and more. Time after time, centralized computer servers face hacks and security breaches that lead the data of users and consumers to get misused. The misuse results in fraudulent transactions, financial losses, and scams.
On the flipside, blockchains use complex cryptographic practices to perform data encryption, making a difference for e-commerce platforms. Using blockchain will ensure that malicious network participants and hackers will not be able to access, identify, and decipher users’ financial and personal data for their nefarious purposes.
Improved Referral Programs Rewards
Another impact of blockchain on e-commerce is that cryptocurrencies can be used to incentivize and reward users who add to the growth of the network via personal use of the network and through professional usage, as they market the benefits of the network to others.
Thanks to the global nature of blockchains, any e-commerce platform across the world can seamlessly make microtransactions to its users without worrying about their geographical locations. It would mean that consumers will receive the rewards directly in their wallets, making reward and referral programs a lot more worthwhile for them.
Unchallengeable Proof of History
Blockchains are immutable, which essentially means that the data you verify and store on them cannot be manipulated or altered in any way. This essential aspect of blockchain helps in e-commerce for verifying customer reviews based on their specific purchase history. It also helps tackle the issue of bogus product deliveries and allows store managers to access the record of every transaction detail easily.
Paving the Path toward Worldwide Decentralized Marketplaces
In today’s age, we are on the verge of experiencing a pioneering moment in e-commerce. For the first time ever, blockchain will allow users and merchants to be able to take part in decentralized networks that have their aspirational and financial interests taken care of through smart contract code. Just like how the internet revolutionized the way we shop, blockchain and cryptocurrencies will now augment the e-commerce experience for both consumers and merchants.
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