How is Blockchain Technology Benefiting E-commerce?

Blockchain is a modern technological concept that suggests a way to decentralize the way financial transactions (in fact any kind of digital transaction) are made. Blockchain technology is already finding value in a large range of industries, even beyond finance and digital payments. For instance, e-commerce operators and companies are actively experimenting with the use of blockchain in their operations, ranging from supply chain to user management, data security, cost reduction and cross-border payments.

According to the data available from hundreds of e-commerce platforms based partially or fully on the blockchain, the technology is benefiting (& can benefit) the industry in a number of ways, such as enabling peer to peer transactions between sellers & buyers, reducing the need & cost of middlemen, bringing more transparent in the supply chain, enabling the use of cryptocurrencies for payments, making transactions & user data more secure, low-cost cross-border payments at a much faster speed, and others.

For example, Libra Ecosystem is a comprehensive e-commerce system based on blockchain that provides a ready-to-use blockchain-based system for fast & secure e-commerce payments along with a range of innovative business/investment management solutions and products. The Libra ecosystem of e-commerce apps & products stands to benefit the industry in numerous ways, including but not limited to:

Enhanced Security

One of the best benefits of blockchain technology is, of course, enhanced data security. E-commerce transactions and data are often prone to theft and hacking. Since the users are required to share their personal data, card details, etc. with multiple third parties and middlemen, there is always the risk of data loss. Libra’s blockchain will help reduce the risk and enhance the security of e-commerce platforms.

Increased Efficiency

Blockchain can help improve the overall efficiency of e-commerce platforms. Libra, for instance, uses blockchain smart contracts to enable the automated execution of transactions based on predefined rules.

Cost Reduction

The Libra blockchain platform helps e-commerce operators reduce the cost of operations by eliminating the need for middlemen. In addition, the automation of various business processes will further help reduce the operating cost.

More Transparency in Supply Chain

Blockchain will help bring transparency in supply chain management, giving users a better & more detailed look at the process through which a product is manufactured and supplied.

Also Read: Libra is the Solution to the e-commerce Industry Problems

Faster Transactions

Thanks to blockchain, the transactions on the Libra e-commerce platform are faster than ever. Cryptocurrencies use blockchain technology for peer to peer transactions that are nearly instant.

Expanded Reach

Since blockchain enables global transactions free of any borders, it allows e-commerce merchants and platforms to effectively serve a global audience and accept fast & reliable payments from anywhere in the world. This also serves well customers in developing and under-developed countries who still lack access to online services.

Ability to Accept Payments in Crypto

Last but not the least, blockchain enables e-commerce platforms to accept payments in cryptocurrencies, which are a fast-growing medium for digital payments used by people all over the world. The Libra e-commerce platform, for instance, allows its platform users to make payments using Libra or ETH for all kinds of online shopping transactions. The dedicated wallet of Libra comes with a feature-rich mobile that can be used anywhere for quick & secure payments.

Original Source: https://libraecosystem.medium.com/how-is-blockchain-technology-benefiting-e-commerce-8c0a846094dc