Blockchain in eCommerce - disruption on the verge

Blockchain in eCommerce - disruption on the verge

Every now and then, we peek a glimpse at a picture on web which derives some insights to blockchain being implemented in one sphere of modern business or another. At the same instance, our mind becomes wary of the physical currency that we are all used to since the inception of monetary transaction in our lives. More than ever, number of shoppers have been inclining over the past few years towards ecommerce. The elevation in e-commerce points to the fact that online buyers continue to prefer self-service methods, rather than engaging directly with customer executives to facilitate transactions. Considering this, the need or the hour is that security measures guarding these e-commerce systems must be top-notch.

One key underlining point is that the current eCommerce market seems overshadowed by several mammoth players such as Amazon, eBay and Alibaba. There is hardly any real competition to existing players and the cost of change is too prominent. Nevertheless, upon deep introspection at any industry, whenever a near monopoly emerges, a new dark horse emerges and disrupts that industry. Speaking in context, in 2007, Nokia was the king of mobile phones. Then came Apple, which was the least expected disruptor.

The power of disruption

It can even be said that the time has come for blockchain to disrupt the eCommerce space and a very important criterion is being fulfilled. It is a fact that the blockchain decentralized control ensures a trust that is achieved without the need for a centralized power. It generates the opportunities and conditions to create new business paradigms and models.

E-commerce disruption at its finest

Reasons why Ecommerce will embrace Blockchain

Blockchain is expected to propel in the coming years on account of tremendous value addition for businesses. A Gartner forecast posits that the value of blockchain for businesses will exceed $3.1 trillion in revenue by 2030.

Various groundbreaking platforms are responding to this potential value in kind by investing in new solutions. The above graph illustrates the global spending on blockchain solutions in the current scenario.

Digitally transmitted transactions between B2B, B2C, C2C or C2B,  initiating an online monetary function are termed as "Ecommerce" and when a business transaction is coded in Blocks via Smart Contracts and connected to a networked Blockchain, it is then termed as "Blockchain Ecommerce". Since their inception, currencies based on blockchain as a form of payment have gained a fair foothold within mainstream eCommerce, but proponents understand there is still ground to be gained. At its core, blockchain is a public record of transactions that provides thousands of real-time validations of the different transactions that are made through it

Following are the grounds on which blockchain will disrupt ecommerce:

Domains of modern Ecommerce handled by Blockchain

Blockchain technology, in a nut shell, has been limited to two major applications till date. The first is online currency: the peer-to-peer transfer of value pioneered by the infamous bitcoin and the second profound implementation is decentralised crowdfunding that has been more prevalentsince 2015.

Lately, Bitcoin is gaining big traction now. Ethereum too is in the counting. Several ecommerce sites have well adopted the change and have started accepting such currencies. 

The developer and CEO of Ethereum " Vitalik Buterin” quoted on the point - 

“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the centre. 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.”

Listed below are 5 key ecommerce chains which are hovering under the radar of blockchain

Delivery and Shipping

An important operator which has implemented blockchain already in its operations and processes is Maersk. This largest shipping containers operator is working in tandem with IBM to improve the global trade infrastructure and facilitating:

➢Process becomes Error-free

➢Operations are Cost-effective

Tokenised ledger

➢Reduce overhead expense and chaos of legal agreements

➢No manipulation and ease of transfer of assets

Smart contracts

Apparently, Smart contracts are digitally-signed agreements that curb dubious monetary transactions and eliminate third-party commission fees

These impeccable contracts also facilitate:

➢Cryptographically secured transactions

➢Nothird-partyintervention

Supply Chain

Two prominent firms namely Everledger and Provenance are leading the march of blockchain aligning to integrity of the supply chain. Everledgerblockchain that allows tracking the origin of diamonds, in order to verify its source without a single point of failure, tracing the movement of product value throughout its life cycle. This application is actually expanding to sectors as unique as fishing and mining industries.

In particular, Provenance facilitates its customers to track the spawning point of their food through a mobile application, with full traceability. Key benefits under supply chain blockchain boasts:

➢Eliminate errors and save time, cost and manpower

➢Delivery of high value and trading relationship

Customer relationship management

Areas where Blockchain CRM technology enhances CRM performance:

Alongside, blockchain ensures that the customers relationship model remains accurate down to the core by ensuring:

➢Data can’t be hampered

➢Transactions are Irreversible