It’s easier to make money now than ever
Unlocking New Revenue Streams Through Decentralized Finance (DeFi)
The world of online shopping is changing fast. As the CEO of BION, a Web3 e-commerce platform, I see this firsthand. We’re not just talking about faster shipping or fancier websites. Web3 and DeFi are opening up new ways for businesses to make money and for shoppers to get value.
At BION, we reward our users with crypto when they shop. But that’s just the start. In this article, I’ll break down how Web3 and DeFi are creating new revenue streams in e-commerce. We’ll look at real examples, challenges, and what this means for the future of online retail. Whether you’re a business owner or a shopper, these changes will affect you.
When all the good things in tech meet
Let’s break down what Web3 and DeFi mean for online shopping. Web3 is all about giving power back to users. In e-commerce, this means shoppers have more control over their data and how they interact with stores.
DeFi, or decentralized finance, is shaking up how we think about money in online retail. It’s not just about Bitcoin anymore. We’re talking about a whole new financial system built on blockchain.
At BION, we’re seeing this convergence every day.
This isn’t just happening with us. Other platforms are jumping in too. OpenBazaar, a decentralized marketplace, handled over $44 million in transactions in 2020. They let buyers and sellers trade directly, cutting out middlemen.
“DeFi and Web3 are not just about creating new tokens. They’re about creating new economic systems.”
That’s right. We’re not just changing how people shop. We’re changing the entire economic model behind e-commerce.
But it’s not all smooth sailing.
A study by Deloitte found that while 73% of retailers plan to integrate cryptocurrency payments, only 4% are doing it now. There’s a gap between interest and action.
At BION, we’re bridging this gap. We’ve seen a 200% increase in users engaging with our DeFi features in the past year. People are catching on fast.
Here’s why this matters: Web3 and DeFi are making e-commerce more open, fair, and rewarding. Shoppers get better deals and more control. Sellers reach customers directly and save on fees.
More ways to earn
Web3 and DeFi are creating new opportunities in e-commerce. Let’s look at some real examples and data.
Crypto rewards are gaining traction.
A report by Juniper Research found that blockchain-based loyalty programs could contribute to over $4 billion in e-commerce spend by 2026.
These aren’t just points; they’re real cryptocurrency that can be used, traded, or invested.
Tokenization is another exciting area. Nike’s venture into digital collectibles with their CryptoKicks initiative is a prime example. In April 2022, Nike’s NFT releases had generated $185 million in revenue, according to Dune Analytics. This shows the potential for brands to create new revenue streams through digital assets.
NFTs are making waves beyond just digital art. Deloitte’s 2022 Global Blockchain Survey found that 74% of business leaders see a clear business case for NFTs. In e-commerce, this could mean exclusive digital products or enhanced loyalty programs.
Yield farming, while complex, is attracting attention. DeFi Pulse data shows that the total value locked in DeFi protocols reached $75 billion in early 2023. This indicates growing interest in using crypto assets to generate returns, which could be applied to e-commerce earnings.
However, it’s not all smooth sailing.
The same Deloitte survey found that regulatory uncertainty is still a top concern for 63% of respondents considering blockchain adoption. Security is another major issue. According to Chainalysis, DeFi protocols were the target of 82% of all crypto hacks in Q1 2022, totaling $1.3 billion.
Here’s a breakdown of potential new revenue streams:
- Crypto rewards: Projected $4 billion impact by 2026 (Juniper Research)
- NFT sales in retail: $185 million for Nike alone in 2022 (Dune Analytics)
- Tokenized assets: 74% of business leaders see clear use cases (Deloitte)
- DeFi integrations: $75 billion total value locked as of early 2023 (DeFi Pulse)
These developments are just the beginning. As Web3 and DeFi mature, we’re likely to see even more innovative approaches to generating revenue in e-commerce.
“NFTs in e-commerce are going to explode. It’s a way to truly own a digital asset.”
How we transact will change
Let’s talk about how Web3 and DeFi are changing the way we pay and do business online. It’s not just about Bitcoin anymore. We’re seeing real shifts in how money moves in e-commerce.
First up, crypto payments. More people are getting into this than you might think. A study last year found that almost a quarter of consumers own cryptocurrency. And a third of those folks are keen to use it for shopping. Why? Well, it’s cheaper for one thing.
When you buy something with a credit card, the store pays a fee. It’s usually around 2–3% of what you spend. But with crypto, that fee can drop to 1% or even less. For big retailers, that’s a lot of saved money.
Crypto is also making it easier to buy stuff from other countries. Global online shopping is set to hit $6.3 trillion by 2024. That’s a lot of cross-border transactions. With crypto, you don’t have to worry about exchange rates or long wait times. One study thinks this could save businesses $10 billion in fees by 2030.
Now, let’s talk about stablecoins. These are cryptocurrencies that don’t jump up and down in value like Bitcoin does. They’re getting popular fast. One called USDC grew from $3.9 billion to $55 billion in just two years. That’s a sign that more people are using them for digital payments.
But Web3 isn’t just changing how we pay. It’s also shaking up how businesses get money to grow. Take inventory financing. Traditionally, if a store needed money to buy more products, they’d go to a bank. Now, they can use something called DeFi protocols.
One of these protocols, MakerDAO, recently lent $100 million to a bank. This shows how these new systems can work with old ones. It could mean more options for businesses to get money when they need it.
DeFi is also changing how customers pay over time. You’ve probably heard of “Buy Now, Pay Later.” Well, imagine doing that with crypto. Some big players in the DeFi world are working on this right now.
Even the way online marketplaces work is changing. Instead of big companies running the show, we’re seeing more peer-to-peer platforms. One of these processed $44 million in sales before it closed down. That proves people are interested in buying and selling directly, without middlemen.
There’s also talk about using DAOs in retail. DAOs are like online cooperatives where members make decisions together. One called ShoppingIO is trying to create an entire shopping ecosystem run this way. It’s early days, but it could change how we think about online stores.
Lastly, let’s talk about data. We all know online stores collect a lot of information about us. Web3 aims to give us more control over that data. There are projects working on ways for you to decide what personal info you share when you shop online.
Some companies are even looking at ways to analyze data without seeing the details. It’s pretty high-tech stuff, but the idea is to give you personalized service without invading your privacy.
All of this might sound a bit sci-fi, but it’s happening now. Web3 and DeFi are already changing online shopping. From how we pay, to how stores get funding, to how we protect our personal info — it’s all shifting. And this is just the beginning. The future of e-commerce is being built on these technologies, one block at a time.
It comes with hurdles
Now, let’s be real for a minute. All this Web3 and DeFi stuff in e-commerce isn’t without its hurdles. It’s like trying to build a rocket while you’re flying it.
First up, regulation. The rules around crypto and DeFi are still pretty fuzzy. One day you’re good, the next day you’re not. It’s giving some businesses cold feet.
A recent survey found that 63% of companies eyeing blockchain tech are worried about regulation.
Can’t blame them, really.
Then there’s the user side of things. Ever tried explaining Bitcoin to your grandma? Yeah, it’s not easy. Getting regular folks to understand and use these new technologies is a big challenge. We’re seeing some progress, but there’s still a long way to go.
Speed is another issue. You know how you can buy something with a credit card in seconds? Well, some blockchain transactions can take minutes or even hours. That’s not gonna fly in e-commerce where every second counts.
And let’s not forget security. DeFi might be the new kid on the block, but it’s already a big target for hackers.
In the first quarter of 2022, over 80% of crypto hacks were aimed at DeFi protocols. That’s a lot of digital pickpockets to watch out for.
These challenges are real, but they’re not deal-breakers. They’re more like growing pains. As the tech matures and more people get on board, we’ll figure out solutions. It’s all part of the process of reshaping how we shop online.
How does the future look?
Imagine walking into a virtual store that exists only in the metaverse. You try on digital clothes that you can wear in video games or virtual meetings. You buy them with crypto you earned from shopping elsewhere. Sounds far-fetched? It’s closer than you think.
Here’s where things might go:
1. Social commerce on steroids: Picture this — you’re watching a live stream, and you like the host’s shirt. You click on it, and boom — you’ve bought a digital twin of that shirt as an NFT. You can wear it in virtual worlds or redeem it for the physical version. It’s shopping meets social media meets gaming.
2. Fractional ownership of luxury goods: Can’t afford that $10,000 watch? In the future, you might be able to buy a ‘share’ of it as a token. You get partial ownership rights, maybe even the ability to wear it for a day. It’s like timeshares, but for fancy stuff.
3. AI-powered DeFi shopping assistants: Imagine an AI that manages your crypto portfolio and your shopping habits. It might say, “Hey, you’ve got some gains from your yield farming. Want to use that to buy the new iPhone?” It’s like having a personal shopper and a financial advisor rolled into one.
4. Reputation-based decentralized credit: Your shopping history, stored on the blockchain, could become your credit score. No need for credit cards. Your history of transactions and returns could determine your creditworthiness across all platforms.
5. Supply chain revolutionized: Every product could have a ‘digital twin’ NFT, tracking its entire lifecycle. You could see exactly where your coffee beans came from, who handled them, and when they were roasted — all verified on the blockchain.
6. Dynamic pricing based on real-time token economics: Prices could fluctuate based on demand, supply, and even the current value of the platform’s native token. It’s like airline tickets, but for everything.
7. Decentralized dispute resolution: Disagree with a seller? Your case could be judged by a decentralized network of jurors, incentivized by tokens to be fair and efficient.
8. Interoperable loyalty programs: Your points from one platform could be easily swapped or used on another. All powered by blockchain, of course.
9. Virtual try-ons powered by NFTs: Buy an NFT of a designer outfit, and use AR to see how it looks on you in real-time. Like it? Redeem the NFT for the physical version.
10. Community-owned marketplaces: Imagine if Amazon was owned by its users. That’s the promise of DAO-based e-commerce platforms.
These ideas might seem wild, but so did online shopping once upon a time. The future of e-commerce is being built on Web3 and DeFi principles. It’s going to be more immersive, more transparent, and more user-centric than ever before.
Will all of these ideas pan out? Probably not. But some will, and they’ll change how we think about buying and selling online. The only certainty is change, and in the world of Web3 and DeFi, change happens fast.
As we wrap this up …
….. one thing is clear: we’re on the brink of a revolution in online shopping. From crypto rewards and decentralized payments to AI shopping assistants and virtual ownership, the possibilities are as exciting as they are diverse.
At BION, we’re not just watching these changes unfold — we’re actively shaping them. But this isn’t just about technology. It’s about reimagining the relationship between buyers, sellers, and the platforms that connect them. It’s about creating a more transparent, fair, and engaging shopping experience.
Sure, there are challenges ahead — regulatory hurdles, user adoption, and security concerns to name a few. But the potential benefits far outweigh these growing pains. Whether you’re a business owner, a developer, or just someone who loves to shop online, the convergence of Web3, DeFi, and e-commerce is something to watch closely. The future of online retail is being built on blockchain, one block at a time, and it’s a future we can all help shape. So, are you ready to be part of this revolution?
Bion is a cutting-edge marketplace that transforms your everyday shopping experience by offering crypto backs — immediate cryptocurrency rewards. Now, with its mini-app available on Telegram. Check it out here.
