Amazon Cryptocurrency Could Be A Game-Changer
The world is such a small place for someone like Jeff Bezos, Amazon’s CEO and retail kingpin. He said his job is easy, because he is ‘working in the future’.
Through dot-com bubble to the crypto boom, can he keep doing it?
Rumors that Amazon may soon be entering the cryptocurrency market have been circulating since late 2017, sparked by a series of crypto-related domain name registrations made by Amazon’s legal department in October. The company acquired AmazonEthereum.com, AmazonCryptocurrency.com and AmazonCryptocurrencies.com at the time, but that may be just brand protecting.
Amazon hasn’t made any comments on the cryptocurrency and blockchain subject, and is, surprisingly, the one megacompany notably absent from the blockchain revolution.
In this article we will talk about the possibilities and outcomes if Amazon decided implementing cryptocurrency or its own blockchain ecosystem, but first, let’s talk a little bit about Jeff Bezos’s life work.
Back in the day, Amazon sold books. Today, they are the world’s largest online retailer and one of the most successful companies in the history. They let anyone set up their storefront and sell whatever they want to, and for a price, they also offer warehousing and logistics services to any seller.
The three initiatives that drive Amazon today are: Prime, the company’s $99-per-year membership program offering high-speed deliveries to your door; an incursion into the physical world with brick-and-mortar stores, something the company has long resisted; and restless rethinking of logistics, lately shown by a new fulfillment center near Seattle that features high-tech robots working alongside human workers like a true factory of the future.
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Amazon Web Services, which grew out of its company’s ecommerce infrastructure, became a $13 billion business that not only powers the likes of Airbnb and Netflix, but stores your Kindle e-book library and makes it possible for your digital assistant, Alexa, to have a perfect memory.
Amazon is not just a retail giant anymore — not only they can sell products cheaper than their competitors, but they can actually manufacture them cheaper.
The AmazonBasics line includes a wide variety of products including batteries, backpacks, Bluetooth speakers, iPhone chargers, dog poop bags and more.
/ GAME OF DRONES
Amazon plans to use the flying drones that can scan the packages for their supply inventory management, flying them above the warehouse day and night, scanning the packages.
Prime Air is a delivery system from Amazon designed to safely get packages to customers in 30 minutes or less using drones.
Today, they have roughly 100,000 robots in use across the world. Amazon has made huge investments in automation.
Amazon is currently trying to integrate RFID technology into their entire supply chain process for their automated fulfillment centers. They even went so far to work with the Auburn RFID laboratory to make the transition seamless and more efficient. Also, according to Auburn’s research — 96% of retailers plan to integrate RFID tech into their supply chain processes.
Similar RFID supply-chain technology is being built on the blockchain right now by WaltonChain , and VeChain, trying to create the supply chain of the future. The goal is to eventually use entity tags to track any object connected to a RFID chip, and store all the information on the blockchain, available to anyone.
Amazon’s biggest strength is its innovative and highly-efficient supply chain, ensuring that it can get millions of items to customers at the right price and faster than anyone else.
The combination of sophisticated information technology, an extensive network of warehouses, multi-tier inventory management and excellent transportation makes Amazon’s supply chain the most efficient among all the major players in the world.
Blockchain technology could make Amazon’s supply chain even better.
/ AMAZON ON THE BLOCKCHAIN
What would happen if the world’s most dominant retail force entered the cryptocurrency market on a massive scale and started accepting crypto as a payment method?
I guess it would make crypto mass-adoption much easier, faster and fun than we’d ever expected.
Cryptocurrency industry has had its big breaks already — digital currencies of the future such as Bitcoin, Ethereum, Litecoin, and Dash already took the market by storm, traded by millions of users on super-fast and secure cryptocurrency exchanges like Binance. Now it’s time for the real-world crypto implementation, and Amazon might be the perfect candidate.
Amazon’s unique supply chain strategies and continuous technological innovations have already changed the way supply chain management works, and with impending advances in robotics, drones and other autonomous vehicles, one can only guess what the future holds.
The company’s base idea is that digital commerce will reshape our marketplace and the way we do business.
As we have seen, Amazon is very innovative when it comes to their supply chain, and the blockchain is the new kid on the block. Distributed ledger technology allows the creation of decentralized digital currencies, but also functions as a game-changer for the supply chain industry.
By implementing a blockchain-based supply chain management system, Amazon would be able to create transactions and document every step of the process, such as conducting payment and audits to tracking inventory and assets, improving supply chain efficiency more than ever before.
It is highly unlinkely Amazon would be partnering with existing platforms such as Stellar or Ripple, and starting to use existing cryptocurrency. One of the primary issues with cryptocurrencies such as Bitcoin and Ethereum, besides the volatility and transaction speed, is compliance.
What is more likely, is Amazon creating their own blockchain solution, with its own Amazon Coin implemented throughout all of their businesses and marketplaces, such as Prime, Twitch and Audible, making it even easier.
They already accept all fiat currencies, why wouldn’t they expand to crypto, if there’s obvious demand and benefit to the implementation?
It would allow shoppers multiple payment options and a possibility to purchase goods at standardized rate worldwide, eliminating the confusion and volatility of fiat currency exchange. Retail customers would benefit from lower fees, high-level security, and smart contract transactions. They already have a website www.AmazonCoin.com that redirects to www.Amazon.com…
Blockchain is still largely untested and less than a decade old, and I think we can almost be sure Amazon won’t be making its move in the cryptocurrency industry before deep research and before they know exactly what they can expect from it. I also think it is safe to assume their entrance into the industry won’t be too similar to today’s ‘last chance ICO’ or some cryptocurrency your barber told you about.
Read the well-respected finance website The Motley Fool’s article expressing doubts on how Amazon might be preparing a silent coup only to surprise its competition and blow them out of the water.
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