Do we really need Blockchain for e-commerce growth?
Umpteen number of e-commerce platforms have flourished ever since Amazon in the late 1990’s came into the picture. The platforms named Alibaba, eBay have become the one-stop solution for customers. These platforms were earlier working with the simplified and default payment processor like PayPal. But dealing with such payment processors has certain cons as well. You as a customer have to pay huge commission while making payment, no direct contact between you and the merchant as some processors are strict about such direct communication, plus chances of data breach also persist.
These reasons if not treated will become big and inconvenient for both the company and the customers. Although GDPR is working in all good faith to protect the personal data of customers, still there are no transparent ways developed by the laws and jurisdiction regarding how a company need to react when a breach of data is encountered.
The robust and the most impacting technology called “ blockchain” is expected to become worth $20 billion by 2024 across the world. From banks to airports, the technology has spread like a virus and is changing, reshaping the way we think and live. If we talk about e-commerce platforms, this technology is highly going to transform the way we shop online.
The majority of people are still suspecting how this disruptive blockchain technology will reshape the e-commerce sector or is it feasible to hire a blockchain development company. For them, here are the few ways and methods by which the blockchain or cryptocurrency will penetrate into the e-commerce for its sustainable growth.
- Low-cost financial transactions
The current payment processors are charging a 2–3% commission of fees from the pockets of online buyers. This situation currently defines the great need to have a revamped, low cost and high standard payment processor on deemed e-commerce platforms. The projects like Request Network and ECoinmerce are expected to make the industry smooth in terms of transaction payments and customer experience.
2. Data Risk will be avoided
E-commerce platforms are highly susceptible to data loss since they carry the personal data of retailers and the customers altogether. The data being centralised has more prone chances of inviting malicious acts from the part of cybercriminals. With an involvement of blockchain development company and cryptocurrency as traded currency, it is easy to avoid the vulnerability of data loss since the data will be decentralized. Thus, it will become difficult and challenging to hack the data.
3. Sheer transparency of every action
With typical payment processors and technology, it is hard to maintain a transparent, clear and direct relationship between buyers and sellers. With disruptive blockchain technology, it is possible to create a decentralized marketplace where every transaction and activity will be conducive of frictionless or smooth actions between buyers and sellers.
4. Alternate payment options
By implementing blockchain technology in the e-commerce platforms, the customers will have more payment modes apart from traditional currency or payment options. The customers by making a payment from cryptocurrency like Bitcoin will give rise to the faster transactions. The payments will be as easy as sharing a QR code.
Conclusion
It can be finally concluded that yes we definitely need blockchain for sustaining the growth of e-commerce platforms. A blockchain development company is a need of today’s time to let the e-commerce platforms understand and delve better into the need of today’s customers. Whenever doubting to hire blockchain developer make note of the above points and see how this technology can improve customer experience. Contact Quantumsoftech to create your platform compatible with the blockchain technology and the cryptocurrencies.
