3 Ways Blockchain Technology Transforming the Ecommerce Industry

ECommerce is one of the most lucrative sectors of 2021. As the e-commerce industry is ready for the next wave of growth, the integration of blockchain technology can make a winning combination. A recent market report revealed that the global blockchain market is predicted to grow from USD 3.0 billion in 2020 to USD 39.7 billion by 2025.

Today, the eCommerce industry is facing various challenges including online identity verification, supply chain tracking, transparency, and cybersecurity issues, which can be solved to an extent with blockchain technology. From Walmart to Amazon, big e-commerce giants are already using the power of Blockchain to make their online business more secure, fast, and scalable.

Here we are going to discuss the top three ways blockchain technology is transforming the eCommerce segment. Read on!

1. Better Supply Chain Management and Tracking 

Supply chain management is the central aspect of any eCommerce business. Since data validated on the blockchain network is virtually incorruptible, implementing Blockchain in this sector will likely solve many problems—for example, recordkeeping, product tracking less corrupt, and better alternatives to the centralized database system. 

As per a Statista report, 79% of organizations with robust supply chain management processes better revenue growth than average within their industries. A strong blockchain network can provide transparency in the supply chain where customers can see the order flow of their products, which increases consumer confidence in your brand.

Blockchain-based supply chain provenance has made tracking of goods easier than ever. The product information can be accessed by scanning the RFID tags and embedded sensors on the product. This technology can help track a product’s location from its manufacturing facility to its final destination. Provenance tracking also helps in detecting anomalies in different segments of the supply chain.

Example- One of the Blockchain projects named VeChain creates a robust visualization of your eCommerce store’s entire supply chain process, resolving the supply chain management problems faced by the e-commerce industries today.

2. Data Protection

For eCommerce business owners, handling and protecting the large volume of data generated daily is a significant concern. The data stored on the blockchain is distributed throughout a network of people thus, keeps the shared data easily manageable, safe, and decentralized without any hassle.

Blockchain-based systems enable eCommerce business owners to prevent hackers from accessing sensitive customer data and databases. The multiple nodes in the blockchain, which act as a communication point confirm every legitimate Blockchain transaction. Also, the blockchain breaks down extensive data into small bits, making it impossible for hackers to snoop into any sensitive data stored in it, as the data is decentralized, encrypted, and cross-checked.

Example- Apollo Currency Team uses The Apollo Data Cloud, blockchain technology in their system to protect their data from cyber-attacks. 

3. Increases Transparency

Transparency is one of the major concerns for customers whenever they spend money on any product on service online. Complaints have been reported against giant e-commerce stores for cutting down the connection between consumers and sellers on eCommerce platforms. Recently, Amazon faced backlash from consumers for disabling the merchant’s page without giving any explanation. 

Blockchain-based technology would facilitate a decentralized environment where any misconduct on the business’s part or merchant can be easily monitored. Amazon, Alibaba, and eBay, Walmart, and Unilever are working on blockchain projects with IBM to gain a foothold in Blockchain-based technology.

How it works:

Blockchain-based eCommerce solution named Bitboost is the best solution to bring transparency to the eCommerce industry. A Bitboost is a decentralized marketplace capable of facilitating online transactions between buyers and sellers transparently.

Conclusion: 

Be it decentralizing the operation or facilitating transparency, Blockchain technology can transform the entire eCommerce marketplace. This technology has the potential to skyrocketing the B2B and B2C sales in the future by offering better transparency in the eCommerce industry, although we still have to wait to witness these implementations. 

However, if you are looking to explore this futuristic technology to take your eCommerce business to the next level, having the right technology partner is a must. We at 2hats Logic Solutions build advanced eCommerce solutions which will help you to stay ahead of the competition and for a seamless experience, saving you time and money, connect with us.