What is Blockchain?
What exactly is blockchain? Simply explained, blockchain technology is a method of storing data that makes it nearly hard to tamper with or alter. As a result, it is incredibly dependable for enterprises. It is fairly similar to how e-commerce businesses maintain their data now. However, using blockchain technology, the data is shared by everyone who uses it. This means that there is no centralised location where all of the information is stored.It’s distributed. This implies that anybody, at any moment, may access the information on the blockchain. The blockchain is best recognised as the backbone of cryptocurrency, but it also has numerous other applications in e-commerce.
Blockchain is an intriguing technology that is gradually finding its way into the public. Originally developed as the underlying technology for the digital currency Bitcoin, the blockchain is currently being used to improve and revolutionise a broad range of businesses. Indeed, the blockchain is currently being utilised to improve almost every facet of our life, from banking to healthcare to e-commerce. So, what exactly is blockchain, and how can it help your e-commerce business?
Can Blockchain Be Used For Product Verification?
The blockchain is a decentralised data structure that is used to securely, transparently, and trustworthily record transactions. It is sometimes referred to as a ledger system since it is used to keep track of various transactions. A blockchain is typically used to verify digital data. It accomplishes this by maintaining an encrypted hash of each transaction. A hash of the preceding block in the chain is included in each block of the blockchain. This establishes a timestamp system that anybody may use to confirm the presence of information at a specific point in time. One of the primary benefits of blockchain is that it is hard to modify the data once it has been established in place. Since it is impervious to corruption, its application in e-commerce is a boon.
Blockchain technology makes it possible to verify that what you're buying is exactly what you believe it is transparently and simply. This implies that producers cannot replace a cheaper product for your purchase, and merchants cannot try to offer you a different, more costly one. It also implies that you won't be able to return "fake" goods and receive a replacement. If the goods are what you requested, they will be sent to you.
How is Blockchain Strengthening E-Commerce?
There was much anticipation that blockchain and cryptocurrency would take several years to become broadly recognised, but COVID-19 hastened it, and people began to use it more and more. And, as we all know, blockchain-inspired technologies have immense potential for governments, businesses, and society as a whole. The technique is regarded to be especially effective for building trust, traceability, and security in data or asset trading platforms.
One of the biggest reasons people avoid making online transactions, according to a study, is the fear of revealing their data. If you own an e-commerce company, it is your responsibility to ensure that the technology you use secures consumer data to the maximum extent feasible. This is where blockchain technology comes into play, as it preserves data block by block and protects data dignity by securing it, and it can only be accessed if you have a key.
At the moment, geographical and economic obstacles limit the number of online transactions you may conduct. Because blockchain technology does not rely on these boundaries, it eliminates these limits. A typical transaction, such as sending money from one country to another, may take anywhere from three hours to three days. Because blockchain verification takes seconds, transactions are almost instantaneous all across the world. The most crucial thing for any e-commerce shop to take cryptocurrency payments is to have the correct payment gateway linked, and another is to choose the cryptocurrency carefully because choosing the wrong one might harm their business. It also has a slew of additional advantages, including cost savings, improved company processes, speedier transactions, and a better overall consumer experience.
Conclusion
Blockchain performs everything our existing commerce system does, except it is less expensive and quicker. It is vital to acknowledge that the current levels of moral hazard, conflict of interest, and blatant fraud are enormous and that the number and severity of problems and pain points that Blockchain promises to solve extend far beyond payments.
Because blockchain is a contemporary bridge between emerging countries and established economies, shipping expenses are the only fixed costs in e-commerce, whether cross-border or not, and practically everything else may be variable or at least a minor commission-only charge. While blockchain technology may be relatively quite new, it benefits both merchants as well as consumers. Blockchain will grow to be an important part of the e-commerce and financial system in future. If you are looking to revamp your e-commerce website, why not incorporate blockchain technology in them? Our blockchain and web development experts can provide you with the best solutions. Contact our experts at Your Flow today and give your business a fresh start!