Cryptocurrency has been quite a popular term throughout the last year and in no time it has started to be adopted by major ecommerce sites like Alibaba and Walmart. Here we take a look at what makes blockchain appealing for the ecommerce industry and how it can boost the industry.
The application is known for being the disruptive power that resulted in the blockchain technology. Fundamentally, the smart contract comprises a few lines of code that specify the information of a certain contract between the parties. The information can be about anything; the amount paid, the documents transferred, dispatch of a product or the usage of electricity.
While the cryptocurrencies have already gained a reputation for being combative against the financial industry, it operates only in one industry; unlike the smart contracts.
In the industry of e-commerce, the smart contracts facilitate direct transactions between the buyers and the sellers of a particular service or a product. The smart contracts are programmable to only be executed when specific obligations are met. For an instance, the buyer can transfer the agreed-upon price of a product in cryptocurrency to the smart contract.
The seller shall send the proof of ownership to the smart contract along with linking the contract to the company that is responsible for transporting the product. Once the seller has fulfilled the obligations, the contract shall automatically transfer the money to the wallet of the seller.
The benefit of the smart contracts is that the same logic can be executed in complete supply chains, accounting systems in an organization, logistics, a web development company and more.
Makes payments easier
This reason alone is enough to ask the magento ecommerce agency to integrate the feature in your platform because let’s be honest, international transactions are quite frustrating and apps like PayPal do come with their own problems.
By opting for blockchain technology, transactions can be done in a highly secure manner, low cost of transaction and a hassle free user experience. PayPal includes an expensive fee for transactions which is not the case with blockchain. The latter does not require much information either unlike PayPal which might require financial details.
The decentralized network
Due to the fact that the blockchain network provides high security to the users, the business owner and the seller can interact in a direct manner with no requirement for a middle man. There is just a small fee to the network in order to validate the transaction and to secure the server. However, there is no payment to a market place firm due to the fact that such an entity does not exist. Since it is decentralized, the business can develop the platform how they determine. One prime example of such a platform is called bitboost.
Helps with the supply chain
Blockchain lets you visualize the entire supply chain. The technology is not finalized yet but when it is done, you will be able to see the entire supply chain in one click. Since block chains can’t be corrupted, you can always be assured of a truthful picture.