Web3 in e-commerce: The next big change?
Have you noticed? Something is taking shape to reform our lives, and its progression is way too fast. What we are referring to here is “web3.” The inception of web3 is leading all of us to a future that is increasingly complex but advanced. It is clearly reimagining our reality and allowing everything to be virtually accessible through the Internet. What web3, in particular, envisions is leaving the traditional Internet behind and embracing concepts like decentralization, NFTs, and more.
Back then, the evolution of the web introduced a term called e-commerce. It allowed us to buy and sell goods primarily through the Internet. Today, e-commerce businesses, as we know, are ruling the market. But with each new development and innovation, there is a shift that every industry has to go through. Web3 in e-commerce has also led to one big transformation. This is what will be the topic of discussion here in the blog. We will cover aspects like what solution web3 will come up with to ensure a transparent and secure e-commerce business.
Web3 is getting exciting as we move forward with technology and has become a matter of interest for many. Thus, keeping in mind that it is still infancy, we will start our discussion with a small definition of web3.
What is web3?
Web3 is a term coined by Gavin Wood, the co-founder of a well-known blockchain network called Ethereum. He referred to web3 technology in the context of Ethereum. According to him, utilizing web3 will spur the growth of the global tech ecosystem. As based on blockchain technology, it totally eliminates intermediary control and gives back the power to the user. The major appeal web3 calls out for is decentralization and token-based economies. Thus, offering better protection for user privacy.
Some of the key characteristics of web3 include:
- Open-source information
- Transaction information remains authentic
- The user itself owns the data
- DeFi web3 application is replacing the centralized monetary system.
We would also like to throw some light on overarching concepts of e-commerce.
What are e-commerce businesses?
E-commerce, also known as electronic commerce, is a process of conducting transactions online. It allows companies and individuals to buy and sell goods and services over the Internet. In Layman’s language, you can now shop for all those physical products over the internet or utilize services online.
However, there are no particular market segments in which e-commerce businesses operate. They comprise wide opportunities. Further, the e-commerce ecosystem involves more than one party in processing a transaction.
Undoubtedly, e-commerce has affected how people shop and consume products and services. It has entirely disrupted the retail landscape by making buying and selling tangible products just a click away. But that’s not all. Combining web3 and e-commerce has resulted in a more technologically advanced wave in the sector. Keep reading to find those key differences that both together will bring for us.
Benefits of web3 for e-commerce businesses
As the market for e-commerce expands at high speed, concepts like web3 and blockchain will only add fuel to accelerate the development. Let’s have a run-through of some of the real-world examples causing the e-commerce landscape to transform.
Trustless blockchain-based e-commerce
What would be your reaction if we told you that paying with cryptocurrencies would be as normal as paying with cards or money in the future? Yes, that’s absolutely the case. Web3-based e-commerce will help us do that. With blockchain combined with e-commerce, there will be a new trend of buying products in webshops through dApps (one of the major use cases of blockchain technology.)
Loyalty rewards based on NFT e-commerce
NFTs, or non-fungible tokens, have seemed to change the ownership pattern of digital assets. NFTs are currently one of the most popular use cases in e-commerce. They typically allow businesses to offer monetizing loyalty programs. For every purchase made, these programs reward customers with points. The points further can be redeemed for products, discounts or even bigger bonuses. Thus, instead of random points, companies can now issue NFT-based tokens with a predetermined value.
Metaverse-based customer experience
Metaverse is happening, and it’s happening fast. There are already countless possible use cases for it, and we can’t really predict how many more will come in the future. Metaverse, as defined, is a virtual immersive and shared world that allows one to escape reality and relive it digitally. The concept, moreover, amalgamates many emerging technologies, such as blockchain and AR/VR.
E-commerce businesses can utilize web3 to provide a real-time and unparalleled experience to their customers. They will not only be able to scroll through but visit a virtual store. That’s what metaverse in e-commerce can do.
A powerful authentication process
More usage of online channels to transact means more digital footprints that are impossible to trace. For that matter, using web3 technology will create a strong customer authentication mechanism for e-commerce companies. Along with that, encrypted digital identities would further improve management and protect them from misuse or theft.
However, the benefits are not limited to easy authentication. Web3-based e-commerce also allows warranty information to be easily stored, accessed, validated and verified.
As technologies continue to boom and give birth to futuristic innovations, new standards in e-commerce will emerge. No matter how advanced the world gets, for companies, customers are their king. Customer satisfaction, thereby, is paramount to the success of any business. With web3, apart from all the benefits, connectivity is what companies are looking for. The level of connectivity and interactivity web3 promises is impressive. Thus, enabling e-commerce experiences to be seamless, interactive and risk-free.
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