Blockchain, E-commerce & Shopperoo
Blockchain is assuming a growing number of critical roles in the global economy, and ecommerce is taking note.
What is Blockchain?
Blockchain has been a buzzword for a longtime, but there’s still a lot of misunderstanding about what it is. Blockchain is not a sort of cryptocurrency, despite its close association with Bitcoin. It isn’t a programming language in the traditional sense. It’s a cutting-edge technology.
The blockchain is essentially a perfectly secure online ledger that records every transaction that occurs at a specific location.
Users can safely share and store digital assets using blockchain technology. Payment processing, product searches, and even customer support are all possible with it.
How do blockchains work?
The word “blockchain” comes from the structure of this digital ledger, which consists of individual records (blocks) linked together in a list (chain).
This series of blocks forms a database that is shared across a group of computers known as nodes, miners, or peers. These nodes keep their blockchain running by confirming and transmitting data about digital transactions, such as cryptocurrency transfers from one network user to another.
Here’s an example: say you buy a phone from your friend George and you pay him in $SRD (Shopperoo Dollars). When you send George $SRD, you create and publish an entry in the Shopperoo blockchain. The other computers in the network will check to make sure you haven’t already sent the data representing that SRD to another user (preventing you from spending digital currency you’ve already spent). Every computer in the Shopperoo network keeps a record of all the transactions made within the network, and tracks the balance of every account.
All entries can be accessed by the entire network because this ledger isn’t managed by a single machine and doesn’t have a single point of failure. This means that data stored in a blockchain cannot be changed, erased, or corrupted.
As blockchain makes transactions secure and faster, it has a huge impact on ecommerce.
What are the advantages and disadvantages of blockchain applications in business and commerce? Ethereum, which provides a platform for ecommerce brands to manage their own blockchains, and Bitcoin, the cryptocurrency that sparked the development of blockchain technology and allows customers to make purchases on sites and apps that accept Bitcoin as payment, are the two most common blockchain technologies used in ecommerce.
Benefits of Blockchain in Ecommerce
Blockchain is a win-win for both brands and buyers since it makes online financial transactions more secure. However, it also has a number of other advantages, including as cost savings, improved business processes, speedier transactions, and a better overall consumer experience.
- Security. Ecommerce retailers are concerned about data leaks and fraudulent transactions. According to PriceWaterhouse Coopers’ annual Global Economic Crime and Fraud Survey 2020, 47% of businesses experienced fraud in the previous 24 months, resulting in a loss of $42 billion. *
The highest level of security for customer databases and CRM systems is provided by blockchain technology, which allows for trusted identities to be confirmed by multiple trusted parties.
- Savings. One of the most significant benefits of blockchain technology is that it enables shops to merge services such as payment processing, inventory management, product descriptions, and so on, reducing the cost of purchasing and maintaining separate systems.
There’s no need to go via banking systems because cryptocurrencies like $SRD* may be sent directly peer-to-peer. This reduces the fees that banks charge for issuing or obtaining funds, as well as the fees that credit card issuers charge to process payments.
- Simple, fast transactions. There are no delays in payment processing or pending transactions because blockchain transactions are almost immediate and do not go via traditional institutions. Customers will benefit from speedier order fulfilment because purchases can be made quickly.
- Reduction in complexity of supply chain management. In the ecommerce supply chain, blockchain allows firms to eliminate the paper and physical labour associated with shipment. At each point of the supply chain, bills of lading for freight can be published on the blockchain, reducing administrative time and expenses while also making it easier to track shipments and verify product details and pallet weight.
Blockchain can also secure the validity and quality of inventory for products with expiration dates or certificates of authenticity, assuring buyers that they are getting what they paid for.
- A global solution. Customers in undeveloped countries do not always have access to a secure banking system. They can avoid the banking middleman with blockchain and cryptocurrencies, giving them access to a wider range of internet shops. It also enables forward-thinking companies to enter new and emerging markets.
Shopperoo and Blockchain
*Shopperoo Technologies is developing a custom blockchain with $SRD (stable coin pegged to the Australian Dollar) and $SRO (fixed supply token) as its core offering. We plan to launch this in conjunction with our trust wallet app (iOS & Android) towards the end of April 2022.
Note: further scaling to major currencies will occur after a beta period.