Contactless payments, eCommerce, and cryptocurrencies that are regarded as impossible at the time are now real, thanks to the developments in computer technologies. Secure actions without doing any additional payments are considerably affecting the financial industry. All these novelties are made possible by the blockchain technology and its solutions. Many industries get a lot of gain from the blockchain techology. Especially businesses benefit from blockchain to reduce their costs and increase their traceabilities.
Advantages of Blockchain in E-Commerce
Cyber threats, overwhelming competition and user expectations that are in constant change are daily realities for those who advance in eCommerce and crossborder eCommerce. Except for the big businesses on the market, all the other ones are a part of the competition. This competition is not only to gain profit but also to survive. The cross-border eCommerce websites that will survive within next years will be the ones who can adapt themselves to the challenges of today.
Some advantages of using blockchain can be listed as below:
- Safety: Due to its digital signature and encryption, blockchain is regarded as a rather secure system. The system is designed to be secure, efficient and safeguarded against any outside attacks.
- Fraud Check: A system that is based on data stored in various places gains immunity to hackers. As it is not easy to access the data, any data can easily be restored.
- Transparency: Banks and customers are immediately informed once the actions are fulfilled securely and efficiently.
- No Hidden Additional Payments: Say goodbye to fees and commissions! As a non-central system is used in blockchain, you do not have to pay for the mediators.
- Speed: Activities are handled faster than they normally would be, as there is no need for a payment system that reduce the costs and increase the speed.
- Reconciliation Account: Participants control the validity of the activities so that they can also verify their authenticity.
- Low Cost: As blockchain is independent of mediators because of its natural structure, it eliminates any additional costs that are to be paid to other parties. This reduces the costs both for the consumers and the retailers.
- P2P Payments Without Borders: Blockchain provides a universal technology service that isn’t subject to any currency rates, embargoes or additional fees on peer to peer (P2P) level that hinder the international payments.
- Advanced Payment Gateways: Thanks to the identity verification systems provided by the blockchain, based on the direct payment between the e-commerce websites and the customer, costs received from the agents for international payments processing will be reduced and activities will become more secure.
- Crypto Linked Social Payments: Compared to other methods of conducting transactions, blockchain users will experience various advantages of using cryptocurrencies.
- Easy Payments via Cards: In order to finalize a purchase through a normal credit card, seven different firms take partake in the process. Blockchain, on the other hand, provides a faster and more efficient performance.
- Checking Purchase Data: Blockchain offers more security and anonymity. E-commerce platforms built upon technology provide a dozen of consumer protections. Unlike many places where shopping and digital socializing take place, blockchain does not have a central power to monitor and collect data. Users are free to choose to hide their data or share it with third parties. Blockchain is still on the process of becoming, and it requires some improvements during this process. Blockchain offers many advantages that traditional monetary trade cannot offer. Finance, health, education, eCommerce, and many other industries have already started using this new technology, and you are never too late to start using it.