The Block chain technology has made a dramatic gatecrash into the crypto currency market, by ruling out arbitrariness in the storage and processing of digital transactions. Many financial institutions like Barclays Bank and Citigroup have successfully adopted the technology. Saying no to data ownership monopolies is the heart of block chain technology, which has made its application in the Ecommerce domain bright and popular.
Elimination of middlemen and intermediaries
Middlemen eat into the profits of businessmen by charging them heftily for transactions. There was a distance between the ownership and control of various digital resources, which has been reduced using this technology. By streamlining transaction processing and decentralizing ownership, both retailers and customers find it advantageous. It reduces cost to sellers and prices to buyers.
Enhanced Fraud Prevention and Cyber security
Using a peer-to-peer network of computers for transaction validation, block chain technology alleviates the risk involved in centralized accumulation and storage of data. This DLT (distributed ledger technology) makes the block chain networks difficult to hack. Sensitive data belonging to customers are effectively stored. Online retailers can also find the technology less vulnerable to cyber attacks. It plugs all the gaps in conventional smart contact coding and prevents virus and unethical hacking attacks.
Meeting quality and health standards
Block chain technology comes of use in efficient supply chain management. Most often, Ecommerce merchants bear the brunt of compromises in the supply chain. Any flaw in products, health specifications, their ingredients, packaging etc can be traced accurately to the points of origins. Similarly safety requirements in handling and shipping can also be adhered to easily, resulting in the delivery of pure and healthy products to the end users.
Nailing counterfeit and substandard goods
It is time to goodbye to counterfeit goods and deceitful phonies of your trusted brand over the online shopping portals. Frauds in supply chain are avoided and it can be ensured that vendors are supplying authentic and original products ordered by the merchants. Each product is assigned a unique identification code which traces them impeccably. The technology enables checking during production, testing and customs clearance, thereby enhancing the trend of global Ecommerce.
Based on a range of preset rules, businesses can automate processes that result in better inventory control and management. The crypto contracts control the transfer of various assets including digital currencies, thanks to the decentralized ledgers used by block chain technology. Excess inventory is not allowed to be accumulated and no-stock situations are also avoided. Replacement stock can be ordered at regular intervals before the threshold for exhaustion is reached.
Popular block chain Ecommerce Platforms
There are many cryptocurrencies that run using block chain technology. The ease and speed of transaction processing is due to the fact that financial middlemen like Visa or PayPal are avoided. amount gets transferred to the Ecommerce entrepreneurs directly. Some examples of such Ecommerce platforms that embrace block chain technology include Bitcoin, Ethereum and IBM, to mention a few. More and more Ecommerce establishments are now moving towards accepting payment in crypto currencies.