The Future of Ecommerce Lies in Blockchain Technology
The e-commerce industry has been struggling with many problems lately. Not only the entire industry, including all operations from manufacturing to payments, is controlled by centralized entities, but there is also limited reach and fixed payment options offered by traditional online platforms. Blockchain, with its outstanding security, transparency and global reach, can help solve many of the e-commerce industry problems. Let’s talk about how blockchain and cryptocurrency can help shape the future of e-commerce.
Why blockchain?
Blockchain is a next-gen payment and digital transaction technology that allows transactions to be performed without the need for middlemen. That means all kinds of digital transactions, from direct trades of goods and services to payments and more, can be performed securely using blockchain.
This is the best time to use blockchain in e-commerce because the technology has been leading the digital world for some time now, and many merchants globally are already using cryptocurrencies for their amazing benefits, including high security and transparency.
And not just payments, blockchain can help improve the overall e-commerce system in many ways, from increasing security to improving supply chain management, enabling quicker and low-cost payments, and overall better data management.
Here’s why blockchain could just be the solution to the many e-commerce industry problems.
A safer payment option
Using blockchain and cryptocurrencies, payments are super fast and very secure. All you need is an internet connection to send/receive payments in cryptocurrencies. Because blockchain transactions are free from intermediaries, they are faster and more cost-effective. Also, because all blockchain transitions are public, there is high transparency and zero probability of fraudulent transactions, chargebacks and disputes.
Increased transparency in supply chain
Unlike traditional e-commerce, where the end consumer/buyer has little details about the product origin, how it was made, ingredients, etc., blockchain can help bring more transparency to the product supply chain, ensuring users have more details about the product they are buying and using. Increased transparency will mean a lesser number of disputes and faster delivery of orders.
Reduced transaction fees
Blockchain’s default payment system, cryptocurrencies, operates without third parties. That means huge card transaction fees and payment processing charges are now a thing of the past, because e-commerce users and operators can use cryptocurrencies to make unlimited transactions at a much lower cost and with high security and speed. This is true for all kinds of e-commerce payments, including international shopping transactions.
Decentralized management
With blockchain, everything is decentralized. Not only are the transactions peer-to-peer but also the information and all the user data are stored on decentralized servers, which are impossible to penetrate. Unlike centralized e-commerce systems that are prone to cyber attacks, Libra blockchain’s decentralized management is far more secure and advanced.
In addition, Libra is introducing many advanced features and services for its platform users. Libra Coin is not just a cryptocurrency but a complete digital payment system that can be used for fast and cost-effective e-commerce payments anywhere in the world. The Libra coin is backed by many next-gen products, such as the Libra card, Libra PoS, Libra Pay, and more, to help make e-commerce more efficient for everyone.
Originally published at https://libraecosystem.medium.com/the-future-of-ecommerce-lies-in-blockchain-technology-a80f2ccfea4a