The real value of blockchain
Whereas there began to appear some doubts whether cryptocurrency is a perfect alternative to traditional fiat money, the faith in the Blockchain is still as strong as steel. More and more companies join the blockchain revolution in order to run the disruption of traditional business areas. Thus, according to CB Insights report, there are at least 42 big industries that the blockchain could transform and the banking is only the beginning of this global transformation.
“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.”
Vitalik Buterin — The developer and CEO of Ethereum
It is really important to always remember that blockchain is not only about money and that it’s real value is much higher than just «fast and safe transactions». This technology has a potential to change our everyday lives, save billions for companies and governments and create new business models and paradigms. Therefore, today, as experts in eCommerce, we decided to share with you our opinion why blockchain will transform this area and which opportunities it will create for the future of online shopping.
eCommerce is a really huge market
To begin with, eCommerce is still relatively new area, but it develops at incredible paсe. Let’s look at some data.
Thus, according to The European B2C Ecommerce Report 2018, the overall B2C eCommerce turnover (in Europe) was €534 billion for 2017, forecasted to grow to €602 billion in 2018. This demonstrates an impressive growth rate from the 2013 figure of €307 billion.
As stated by Capstone Headwaters Report, in 2017, approximately 8.3% ($333.1 billion) of all retail shopping was conducted online, according to the US Department of Commerce. This is compared to just 0.9% in 2000. The share of online shopping is expected to see continued growth, and IBISWorld has projected eCommerce sales to increase at an annualized rate of 7.8% between 2017 and 2022. Collectively, these trends and positive industry outlooks are driving companies to both build out their online platforms and to seek growth through acquisition.
By that way, it is not hard to understand that eCommerce is doing really well last years and therefore there is a question if there is a place for blockchain?
Is there a need to change something in the area which develops really fast by itself?
The power of disruption
The only concerning point is that the eCommerce market seems monopolized by several giant players like Amazon, Alibaba and eBay. There are hardly any challengers to existing players, and the cost of change is too high. Nevertheless, if you look at any industry, whenever a near monopoly emerges, a new technology emerges and disrupts that industry. By that way, in 2007, Nokia was the king of mobile phones. Then came Apple, which was the least expected disruptor.
There are no doubts that the time has come for blockchain to disrupt the eCommerce space. The most important benefit which is provided by that technology is that the blockchain decentralized control and ensures that trust is achieved without the need for a centralized power. It generates the opportunities and conditions to create new business paradigms and models.
The law is changing
It is worth noticing that the regulation is another weak spot of blockchain and especially cryptocurrency as it prevents a lot of people and companies from using the technology that can bring so much benefits to their lives. The most common reason here is that the laws are not ready yet and that the regulators still can’t decide whether blockchain is «a common good or an evil».
However, the good think here is that it can’t last forever and even right now we can notice positive changes. Thus, one of the biggest regulatory changes for last years has come in the form of General Data Protection Regulation (GDPR,) Europe’s data law which came into effect on May 25 of the year 2018. This law will definitely have a serious impact on blockchain technology and eCommerce market.
To sum up
It is quite clear that the new regulatory changes in couple with the further development of blockchain technology will have a definite impact on existing players which will weaken the positions of global players-monopolists like Amazon and eBay and will provide the chance for smaller and most technological marketplaces to take the stage.
We think, it is the perfect time for Storiqa and STQ to appear there. Storiqa was founded in August 2017, with the aim of creating a quick-to-setup marketplace for SMEs with minimal financial borders and global transactional fees. Our key features and tools are based on using cryptocurrency and blockchain technology to resolve existing industry problems between buyers and sellers. We know that the market is ready for a crypto marketplace so we are ready to change eCommerce with STQ token in the nearest future.
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