The world has changed and setting up new process and method of doing their even more precisely we are changing our self into a machine and dependencies is increasing more than our imagination.
HOW BLOCKCHAIN TECHNOLOGY IS TRANSFORMING RETAIL AND E-COMMERCE INDUSTRY.
By: Anurag Varshney on April 20, 2019
Blockchain Technology is transforming retail and e-commerce industry
The concept of Blockchain technology might seem strange to some people, but it is now transforming the retail and e-commerce industry. To start with, blockchain is a distributed ledger technology that cryptographically seals digital records in an immutable time-stamped chain - the technology behind Bitcoin. Online payment means have become the order of the day, and with cryptocurrency technology, e-commerce is growing fast.
Blockchain as a technology is decentralized in nature and it does not rely on one central point of control. It lacks single authority and hence transactions are more secure as fail of one or two systems will not corrupt the data. As the name implies, chain is made of several data blocks, which contain records of transactions and are decentralized. Chains are distributed ledgers across peer-to-peer networks that are continually updated and kept in sync. A lack of a single authority makes the system fairer and considerably more secure.
E-commerce has carved a niche for itself online, thanks to the blockchain. Now, people are drifting from traditional bricks and mortar shopping centers to e-commerce platforms. Blockchain technology is here to resolve issues confronting retail and e- commerce and make business worthwhile for the seller and buyer. With blockchain, e- commerce will experience secure and cheaper payment means, genuine reviews, improved inventory and supply chain tracking, more accessible storage of warranties and so on.
Now that we know what blockchain entails, here are ways it is changing e-commerce and retail companies for good:
GROWTH IN SUPPLY CHAIN
Monitoring and investigating inventory, purchases, invoices, shipments, and receipts is a big problem in e-commerce companies involved in enhanced supply chains. Blockchain can reduce all the paperwork and manual input to create tamper-proof master ledgers between businesses.
Blockchain offers a single system of record for all parties to all transactions related to products. In this case, there is a single entry, transparency, and no duplication along the entire chain. Each time an item changes hands, the transaction is recorded in the blockchain, creating a complete record from production to sale.
Once businesses are sincere about their products from the onset, then blockchains have the potential to reduce inaccuracy. Blockchain can facilitate neutral supply chain contract enforcement through smart contracts.
CHEAPER AND STREAMLINED PAYMENT METHODS
When it comes to payment on retail and e-commerce platforms, the amount charged by card companies and financial institutions on payment processing is exorbitant. It poses a burden to shoppers as the e-commerce platforms also levy fees from the retailers on any order made. Blockchain technology is set to reduce payment issues in retail and e-commerce to the barest minimum because it doesn’t require third-party authentication to execute a transaction.
Blockchain allows a customer to send and receive crypto coin from a retailer. The transaction is complete when the customer gets a confirmation message from the blockchain’s system host, and gets paid immediately. With blockchain, retail and e-commerce companies can streamline buying of products through credit cards and reduce costs for back-end entitlements. This is still a newer concept and it’s adoption has many kinks on the way, however seems a promising to make world boundaryless by providing a common payment method. As a technologist and thought leader, I am always keen to watch emergence of technology as well as it’s adoption in business and among people.
DATA SECURITY AND FRAUD REDUCTION
Often, customers’ data collected by retail and e-commerce platforms are store in their on-premise database. However, these retail and e-commerce companies have little or no knowledge about securing their customers' information and data analysis for business insight. As a result of this, vital information of customers and retailers such as login details, personal data, and credit card number may get hacked.
The retail and e-commerce companies can leverage on blockchain distributed ledger to create secured identities and cryptographic functions to safeguard biometrics used for access authorization. It makes it very difficult for third parties to have access to an account. Also, with blockchain technology, data security of distributors, suppliers are guaranteed because it is a decentralized system. Data in blockchain is encrypted and secured in many ways. One can also save a cryptographic signature of a document or file on a Blockchain. This would give users a way to ensure a file is un-tampered, without needing to save the entire file on the Blockchain.
There are so many ways blockchain technology is helping the retail and e-commerce companies to grow and streamline their processes for customers’ satisfaction.
There are so many ways blockchain technology is helping the retail and e-commerce companies to grow and streamline their processes for customers’ satisfaction.
In our next article, we will provide more insight and information on how Artificial Intelligence is transforming the Fashion industry.
The Author is an IT thought leader in the retail and fashion world and has written this article for a new division “NeuVays ” of Mckinsol, focused on emerging technologies.
NeuVays is dedicated to developing products based on Blockchain, AI, ML and IoT at McKinsol. NeuVays is aggressively hiring the right caliber of people in Asia at their offshore development office.
(Anurag Varshney, 2019)