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Retailers have focused on blockchain to reduce transaction costs and expand into newer channels and give power to customers
Fremont, CA: The e-commerce traffic is growing, and the number of people shopping with cryptocurrency is also on a hike. Retailers are looking for options, an approach to secure transactions and make better use of the new currencies. Blockchain and its added benefit of security seem like the most appropriate action for the retailers to take, as it paves the way for numerable opportunities. Some of the blockchain-as-a-solution characteristics are discussed below:
Blockchain Brings Better Security, Lowers the Cost:
The cost of transactions via blockchain is lower than the cost of the transaction fulfilled via traditional e-commerce. Public blockchains levy a fee of 1 cent for every transaction, and private ones offer services at a relatively lesser cost making blockchain the most preferred facilitator of payments transfer. The low costs are an added advantage, opening the doors of myriad opp
ortunities to the retailers and customers for making rapid micropayments.
Adoption of blockchain has not only improved the data security levels with its decentralized nature, but it also makes it extremely difficult for outsiders to hack into the data queue and execute unauthorized actions. This decentralized nature occurs from its opposition towards data storage on a central server.
For the infiltration of the network, extremely difficult and expensive methods are required, as each node on the network would fight back against any foreign entity or an attack carried out on the blockchain.
The only method to bypass the defense system of the blockchain is by a “51 percent attack”, where an attacker will simultaneously penetrate the majority of the nodes that are spread all over the world. A similar decen
tralization also allows increased reliability of data, as it defends the companies from data loss occurring due to server downs or failures.
Retailers who Accept Cryptocurrency may Benefit:
Another positive trait of blockchain adoption is an enhanced supply chain management. Several large retailers have adopted blockchain to minimize the cost and complexity of the supply chains or are testing blockchain technology for the same purpose. Blockchain can also assist retailers in decreasing paperwork and other formalities associated with international shipping.
“For example, data from a bill of lading for cargo shipments can be manually placed on the blockchain at each stage of the supply chain or automatically entered, eliminating the lengthy and expensive administrative process of approvals and receipt guarantees,” Practical Ecommerce notes.
“This allows all participants to track the shipment through its journey, verify the product information (such as pallet weight) at each step, and know that the data is accurate and trustworthy.”
Blockchain also enables retailers to expand into several new channels and attract new kinds of shoppers, says the Practical Ecommerce reports. Many of the emerging marketplaces are smaller in size when compared to conventional e-commerce channels.
“However,” Practical Ecommerce points, “the marketplaces provide an option for merchants that are targeting a cryptocurrency-savvy community or want to expand their retail channel and appreciate a decentralized model.”
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