Merging Blockchain Technology with Ecommerce

Statistically, the Ecommerce industry has experienced sustainable growth over the last few years, recording a total revenue of just under $2.3 trillion last year in 2017. Economists predict that this rate will continue, due to the increasing usage of technology in our daily lives, but the growth will most likely be marginal if the current conditions in the Ecommerce industry remain. There are several contributing factors to this, including:

• poor user experience
• improper pricing and marketing techniques
• data breaches

This is exemplified most recently by the payment system breach of Saks Fifth Avenue and Lord & Taylor. Consequently, this causes consumers to become apprehensive immediately. It should come as no surprise that this type of detrimental publicity influences revenue in a negative manner. Presently, there are very few solutions for these types of issues.

Blockchain technology provides a lucrative option to solve many of these problems in Ecommerce. This innovative technology serves as an immutable ledger with real-world application to improve trust, credibility, and transaction verification. Since information stored on the blockchain is cryptographically secured, each respective party involved in the transaction ultimately gains increased trust in the transaction being verified. In addition, the decentralization and transparency of the blockchain are what make it a preferred method of transacting for the minority of people that have been introduced to it and understand it. We can undeniably expect gradual mainstream adoption, which is already beginning, even though the technology is still considered to be in its infancy. As blockchain becomes more popular, there will be several large corporations that integrate it into their ecosystem to improve overall efficiency. In addition to its most practical use of transaction verification, this revolutionary technology can be applied to the aforementioned issues in the Ecommerce industry to create a more stable, thriving future.

As evident with several companies including Facebook and their recent scandal involving selling user data, there’s a legitimate cause for concern regarding data storage and data control. The blockchain is a fantastic alternative. This distributed, immutable ledger can store data that cannot be tampered with, which benefits several industries. For example, when someone goes to purchase a house, any previous information that could be stored on the blockchain would verify that all of the information the real estate agent gives to the buyer is completely accurate, including any renovations or issues that were fixed. In addition, the aviation industry benefits from pilot data being stored on the blockchain to guarantee that the pilot has his or her license and is qualified enough to fly the plane, which improves aviation safety. Aeron is the primary blockchain company that provides these services. Lastly, Elysian provides a practical solution to data storage in Ecommerce by storing consumer data on a private blockchain, and using smart contracts to verify transactions. These are all practical uses that benefit each respective industry, which ultimately leads to improved quality and efficiency in Ecommerce.

An extrapolation of the projected Ecommerce revenue indicates a flourishing future, but only if we adapt properly as a society. We are entering a period of time in which a majority of the current status quo represents stagnant, antiquated technology. Mass market adoption of blockchain technology can provide rapid, exponential growth in the industry, primarily because it solves a plethora of issues that currently plague Ecommerce. As a result, we can expect to see an influx of businesses into the market as it thrives, and a significant portion of the businesses that already exist will integrate blockchain into their ecosystems. For these reasons, blockchain is well-positioned to become an industry-leading technology and a dominant force that carries Ecommerce forward.