Block Chain is still growing in its application but a business involve in virtual market cannot afford to ignore its benefit. It has wide application in the field of accounting, management and logistics and many other field.
The industry players have realised the fact that Block Chain Technology will have significant impact on Ecommerce. So, the big players like Walmart and Unilever had entered into collaborations with IBM. Alibaba is also investing enough amount in Block Chain research and development to understand its impact.
Block Chain Technology is a decentralised distributed ledger that records all the digital transaction. Once the transaction is recorded, it can never be removed. Block Chain Technology came into existence since 2008 but popularised in the year 2017 because of Bitcoin and cryptocurrency.
Implementation of Block chain Technology in the process of online business can overcome many issues. Block chain can disrupt payment system in virtual market with its cryptocurrency technology.
3 Major benefit of Block Chain Technology on ECommerce:
- Reduce the cost of transaction
In ecommerce, buyers and sellers require an intermediary to complete the transaction faithfully in a transparent manner. The intermediary charge commission for this. Using Block Chain technology, Both the parties, buyer and seller can interact and exchange their values directly with the help of Smart Contract. Smart Contracts are the digital agreements between buyer and seller which is self-executory. It has some codes of line that contain details about the contract.
Many consumers avoid to purchase online as they are afraid of online payment system. Block chain technology has its disruptive application in ecommerce as it provides secured payment system with its cryptocurrency. Also, buyer can verify pricing of different goods for different consumer through distributed database. Block Chain also reduces the nominal cost involved in different modes of payment and issues related to delay in settlement, errors as well.
Block Chain technology contains distributed ledger which keep records of all the transaction visible to all the participants. This ensure transparency in the over all process, avoid discriminant pricing for same commodity. All the participants can validate and audit the transaction and can choose seller who best fit to their needs.
Thus, Block removes the need for intermediary for online transaction. Block chain allow every participant a right to verify the transactions. The data at each stage are visible to its participants which reduces chances of disputes and delays and make the whole process a systematic one.
Block Chain technology has revolutionary impact on ecommerce as each transaction, agreement and process has its own digital signature. The contracts are recorded on a distributed database and free from risk of being modified.