Blockchain is a distributed ledger that is encrypted and immutable. Each new block that is added to the chain needs to be verified by the previous block with a unique identifier. Blockchains are cloud-hosted (hence the term ‘distributed’).
So, while this is obviously useful for transactions and has traditional finance institutes scrambling because Blockchain can cut the middle man, Blockchain’s native safety features make it a great choice for what’s known as ‘the single source of truth’ as well.
Blockchain technology and crypto payments are the future of e-commerce. Not only for big webshops but for everyone. Blockchain will solve a lot of e-commerce problems. Such as the following:
Smart and honest reviews
Blockchain assures the transparency in terms of honest shopping. Shoppers will be able to leave a review only after receiving ordered goods, it means no fake feedbacks.
Affiliate marketing on blockchain
Sellers will be able to cooperate with bloggers and get a free promotion from them. Traffic owners (bloggers) will be able to monetize their reviews through an affiliate program.
Fast and cheap transactions
Traditional online global trading implies long and costly transactions. Multicurrency wallet will help shoppers and vendors to interact easily and perform cross-border payments in a convenient way. A fee for transferring cryptocurrency is much lower than for transferring fiat money.
Buyers will be safeguarded due to usage of smart contract system. Smart contract transfers money to a seller’s account only when an ordered item has reached its destination. So, a customer pays only after receiving the product, it increases his or her confidence in a service and makes online shopping more attractive.
Moreover, blockchain brings cryptocurrency to common usage in online trading. It means that selling globally will be easier because it’s more convenient for people!
Want to learn more about blockchain? Join Andrew Turner in his roundtable sessions at the eTrade Summit.
(sources: Storiqa, Investreum)