The is no denying that blockchain is a disruptive technology. It is already being implemented in a variety of data-intensive industries. Some of these include financial services, supply chains, health, energy, and online gaming. Among all areas, e-commerce stands to benefit the most.
The rapid growth due to e-commerce applications in the retail industry expects to reach $4.5 billion by 2020. This is occurring amidst several persistent problems within e-commerce. Payments, management systems, supply chains, logistics, and transparency all need improving. Retailers and consumers alike are dissatisfied with the status quo.
Decentralizing the Business Model
One of the most glaring reasons is because of centralization. Most of the e-commerce business is handled by a few large corporations. It is because of this centralized business model that blockchain technology is seen as the only solution.
Blockchain technology is intended to be decentralized. Many projects, like Bitcoin and Ethereum, make decentralization a primary factor of how their blockchains complete transactions. This would remove the power that large corporations have over the industry. Since anyone can run a node to verify transactions, any future trend toward centralization becomes highly unlikely.
Better Application of Cryptographic Security
Current payment solutions within e-commerce are not nearly good enough. Even with the success of PayPal and Skrill, the industry faces speed and security issues. Another concern in this area is data security. Blockchain technology cryptographically secures digital transactions on a fundamental level. This allows both payments and consumer data to remain anonymous over the web.
A Complete Solution
Decentralization and transparency compliment each other in blockchain technology. Together, they can advance logistical applications for supply chain management. A truly incorruptible system becomes a reality. This is all achieved through a transparent marketplace. One in which consumers can see first hand how their order is processed, received, and handled along the supply chain.
An Undeniable Edge
As can be seen, a transparent business model for supply chain management greatly improves consumer confidence. It lessens the friction between consumers and producers. The major players, Amazon, Alibaba, and eBay, all have begun their own blockchain projects because of these powerful implications. Within the next 5 years, blockchain technology expects to substantially drive B2B and B2C while making both consumers and producers happier.