Knowing About Blockchain in Brief
Blockchain technology has begun to appear in nearly every popular industry around the globe but to the mass population, it has not been perceived correctly. A huge number of people are still witnessing to be considering Blockchain as a cryptocurrency. The other prime incorrect conception that has also been noticed among the citizens is to believe Blockchain is a Software program or application. Blockchain Technology can be correctly explained as a digital ledger that maintains and stores detailed, precise records of all transactions happening on a specific network. One of the most indispensable features of Blockchain is the Immutability representation. The term suggests that the Blockchain empowered network would not allow any kind of alteration in the already stored records and no central authority will be present who will be able to facilitate such change requests or alterations. This lets the records hold superior authenticity and becomes trustable by third-party organizations or networks.
The security is more intact due to the technological format in which the records get stored in a blockchain empowered online or offline business. The information or records are stored in the form of interconnected blocks which are all cryptographically encrypted. Every single block remains deeply connected with its preceding and succeeding block so that the whole chain of blocks can function efficiently in providing the detailed history of any transaction. The movement of intangible and tangible assets is also maintained with such precision by blockchain that it becomes incomparable. The Blockchain system also functions with a distributed capability which means a high level of transparency gets maintained among the network members at all times. Many blockchain networks also function in a structure that makes a transaction gets added to the Ledger only if the majority of verified members in the network approve of it. Each user functions through nodes and these nodes always receive access to the Ledger. Each record also gets distributed throughout the blockchain network so that each member receives the same level of access.
Why Blockchain will be Advantageous for the eCommerce Industry
When Blockchain Technology is analyzed properly it can be witnessed that all the major fragments of the e-commerce operations can be upgraded by the implementation of Blockchain. Any e-commerce platform empowered with the prime features of Blockchain will have the capability to provide customers with a premium online shopping experience. The e-commerce platforms have the colossal responsibility to always safe-keep the customer data along with exact maintenance of the transaction records. The popular e-commerce giants nowadays have a transaction occurring every second in their dedicated platform, thus the most advanced technologies are required for stable functionality.
Blockchain technology has the feature of smart contracts which are more like a chunk of rules with the capability of auto implementation when the pre-set conditions are satisfied. The digital payment processes, product purchasing, and product searches too can benefit from the smart contracts in-built into Blockchain Technology. The Blockchain more popularly being established as a cryptocurrency supporting technology can also benefit forums where cryptocurrencies like Bitcoin and Ethereum are accepted. As there doesn’t remain any supreme authority with dominance over the network, the customer’s trust will increase as the records, data and browsing processes cannot be tampered with by anyone. Sensitive Industries like Healthcare and Finance have the implementation of blockchain in various fragments running across several countries although the technology was primarily just being in the Digital Currency sector with much-limited use.
The prime benefits which can be witnessed in e-commerce due to Blockchain implementation
Rapid Pace Transactions- The interlinked blocks would immediately be serving data whenever requirements in multiple fragments of the e-commerce website. The checkout process or order placement would get completed in a few seconds including the payments processing. Most of the e-commerce platforms already have an organized selection and order process format but still take a lot of time when the customer chooses to make pre-payments through e-wallets, debit cards, credit cards, or similar such options. This can be changed by the implementation of Blockchain which lets the payment occur through a blockchain integrated gateway with quick authentication for payments. As various banking platforms are also using blockchain technology data sharing between platforms won’t require chunks of digital validation. In a Blockchain-based payment network the authentication gets reduced by a lot, it becomes possible to make direct payments without going through the bank-hosted networks. Smart Contracts are one of the most vital features of blockchain technology that makes transactions occur at an automated rapid pace. The rules and constraints present within smart contracts let transactions occur automatically without any human intervention requirements for validation.
Reduction in Costs for e-commerce Hosting- The transparency and interconnections that the blockchain brings into e-commerce processes can reduce overall expenditure in the whole e-commerce system. Blockchain establishes a transparent and well-distributed network among all the sections of an operating e-commerce business. When the business sections like inventory data, order placements, payments, delivery process, and various other sections are able to access all the real-time data, the whole e-commerce system automatically holds enhanced performance. As a single blockchain network can be used by all the divisions, the need for separate monitoring and management systems gets eradicated. This lets the cost get utilized elsewhere in the particular e-commerce business. The existence of various different systems also requires more number of employees which also contributes to the total costs of business operation. Using certain types of payment modes like modern cryptocurrencies also lets the e-commerce authority make substantial cost reductions by avoiding the banking portal fees and charges.
Security to e-commerce Data- There have been various incidents of data theft in the past that took place on multiple web platforms. Many surveys reveal that cyber-attacks and fraud activities have accounted for the loss of more than a billion dollars. For private blockchain networks, only the authorized members of the network can have access to the Digital Ledger to view records. The immutability prospect of the blockchain technology also contributes to Data Security by not allowing any kind of tampering to take place with already recorded transactions and other vital customer data. The use of cryptographic encryption on each block of data or record lets the network hide the true nature of every block by using cryptographic masks. The data which goes into the blockchain network to get stored always receives a hashed mathematical value which is a fixed length but doesn’t provide visibility into the actual data which is stored in the Digital Ledger. Through the cryptographic hash, a particular block remains deeply connected to its preceding and succeeding block, and tampering with a single block hash ID won’t reveal anything to the cyber attackers. Most blockchain networks function by providing members with two sets of digital keys.
Blockchain-based Tracking in Supply Chain Management- The supply chain plays a massive role in the smooth functioning of an e-commerce business. The supply chain operates with enhanced reliability when the supplying items or cargo can be tracked precisely in real-time with the use of blockchain. The orders can be accepted more efficiently by the business when they have real-time information on the new stocks which are arriving through the supply chain network and exactly when they will reach. In the blockchain network, every record is stored with additional details and the supply chain details help the e-commerce business with better monitoring and change implementation in the supply chain if required.
The supply chains which still function in the orthodox format have to deal with a massive set of paperwork that often makes way for errors and delivery complications. The security and authenticity can also be reverified by the e-commerce businesses with the help of information provided in the blockchain network. For products with sensitive handling and limited time, expiry e-commerce authorities can exercise better management on their products and inventory as well.
Easy Access for Customers to Purchases and their Rewards- The customers can also directly benefit from the blockchain empowered e-commerce platform. All the details in regards to purchasing history including warranty cards and receipts can be very easily accessed after several years. The data remains stored intact with the details for the Immutability of blockchain technology. The papers related to the order and warranty are often lost by the customers, in some cases, the papers also don’t remain in a valid condition for proving authenticity. After-sale customer service is highly important for e-commerce businesses and blockchain can help in improving it with instant traceability. When the customer approaches after a long time regarding a product issue then only with a few basic details the authenticity of the purchase can be established at the e-commerce authority’s end.
The managing and issuing of reward coupons or points become much easier when blockchain technology is present in the e-commerce platform. The rewards and offers can be made personalized by blockchain with the use of smart contracts and easy platform data exchange with other websites or brands. The Blockchain allows data exchanges in a secured and encrypted format between two organizations without the need for pre-established trust and this lets customers apply the rewards from one platform to another e-commerce platform. These types of rewards are often provided when the customers accomplish certain levels of purchases or facilitate the joining of a particular number of users. These types of Loyalty related programs and personalized rewards lets e-commerce platforms engage with more customers and maintain a high rate of customer return. Blockchain works best in processing these rewards and allocating them accordingly based on the account activity of the customers.