April 26, 2018
Blockchain! The technology gained its fame after the pandemonium created by the crypto currency Bit Coin. The story of people became millionaire in a fortnight has given the technology stardom like none of its counter parts.
But What Exactly is Block Chain?
Blockchain technology is a decentralised digital ledger of economic transactions, which is specifically designed to record not only the final transaction but also everything that goes in it. In simple terms, everything is out on display to the public but in a series of complicated code, which you can find out after a lengthy and challenging calculation, making it one of the safest ways to transact money.
So, isn’t it obvious that the technology can be used in e-commerce industry which has got huge amount of risk especially when it comes to transaction?
1. Authentic Transactions
Using blockchain technology your customer will be able to transfer the amount directly from his bank account to yours without any middlemen like Visa, MasterCard or PayPal taking a share of your profit. This is how blockchain technology and crypto currencies can change the e-commerce industry:
Every shipment has a code, which the customers can track using blockchain technology. The accuracy of the tracking is very more advanced than what is available right now. For example, if you are at a supermarket buying an apple, using the code you can find out from where is that apple and when was it harvested or whether it is fresh or not. Online customers are increasingly concerned about the source of the product, emphasising only on ethically sourced products.
Blockchain technology will make the tracking process completely paperless, which will massively benefit the environment and there will be complete transparency between customers and retailers as well.
3. Health Hazards
Tracking shipments using blockchain technology is very beneficial for food products. For example, companies like Hello Fresh that sell ready to make food and their customers can use the technology to monitor health, contamination, and safety requirements of the ingredients. It can be used in continents like Europe where contamination is widespread, especially when it comes to eggs.
The technology can save people from epidemics and millions of money spent to cure all of them.\
4. E-commerce and Payments
Cryptocurrency payments can help e-commerce companies to keep track of all transactions, which will be very useful if a customer asks for the refund. Expedia, an international travel operator, is one of the first companies who have started accepting payments in Bitcoins for hotel bookings. Shopify also has a Bitcoin payment option for its customers.
5. Proof of Ownership
Counterfeiting will no more be an issue for brands because blockchain technology will help them prove that the designs belonged to them and the ability to do so will increase the product’s worth and the brand’s value. Ascribe is an ownership company that helps companies and artists register themselves as product creators using blockchain technology. Using your dashboard on the company’s website, you can track sales of your products and is aimed at reducing copyright claims.
6. Human Resources
Now you might wonder how to make the hiring process technological? However, you can use a lot of technology for hiring, retaining, compensating, evaluating, and firing. According to Society for Human Resource Management, human resource department can use blockchain technology for modernising parts of the hiring process such as verifying credentials of existing employees and job applicants.
Multinational companies will benefit the most from the technology when it comes to handling payrolls as it can standardise payments across various currencies. Travis Parker, COO, IRA Bitcoin LLC, feels that blockchain technology is also changing how employees plan their retirement as it diversifies their investment portfolio and has more control over their assets.
7. Advertising and Marketing
According to the Juniper Research, advertisers lose $51 million every day, totalling to $19 billion every year because of fraudulent activities. If not controlled, the amount will reach $44 billion annually by 2022. Blockchain technology can help reduce click fraud and thereby helping marketing and advertising reach their targets.
Amir Jan Malik, digital marketing expert, Accenture Interactive, said that blockchain technology was developed to prevent fraud in banking, so the same can be applied the e-commerce level.
Even the most famous companies including Target, Yahoo, and Equifax have been victims of data breaches by viruses and hacking causing the release of personal information of millions of customers. With e-commerce industry becoming increasingly, it becomes essential to protect it from frauds.
David Schatsky, managing director, Deloitte US, said that blockchain technology provides a way of recording transactions or digital interactions in a very transparent, secure, efficient, auditable and highly resistant to outages way. It is necessary for every cybersecurity system to have these features. In simple words, blockchain technology will help protect the critical intellectual property of the e-commerce world.
9. Managing operations
Old companies are facing severe problems adjusting to operation management online. Eastman Kodak, a 129-years old firm, is going through the same struggle and finally decided to invest in developing an encrypted, digital ledger of rights ownership, called KODAKOne. Photographers that work for the company can register their existing or new work on it and license them using the platform.
The system allows them to participate in secure payment and receive money immediately through the technology and never worry about their work being stolen.
10. Safer Web World
Blockchain technology with its unlimited benefits makes the web world a safer place. It will some time for people to adjust to the new technology but it won’t be long before they understand its value. E-commerce shopping will become trustworthy, with very fewer chances of your package not showing up or your personal information getting leaked. It will speed up the time taken for e-commerce companies to reach business goals.