Blockchain, as a synonym for trust, directly satisfies users’ experience of product quality and service quality. The emerging e-commerce industry has matured, and a new e-commerce model constructed through blockchain technology has arrived.
What changes will blockchain bring to the e-commerce industry?
1. Centralized e-commerce platforms are slowly disappearing
Consumers now shop on major e-commerce platforms. These e-commerce platforms are doing credit endorsements for transactions between buyers and sellers. Once blockchain technology enters mature applications, merchants, platforms, and consumers will all benefit. Buyers and sellers can trade directly, and no third party can manipulate or review. This is faster than the existing centralized e-commerce trading platform.
2. Existing payment methods will be subverted
In most cases, it may take a few hours to complete the regular payment method in different countries/regions. The emergence of blockchain technology can solve this problem well. It can realize all-weather payment, real-time payment, and no hidden costs. Transaction information is shared at all times, the transaction process is tracked in real time, and the bank writes off accounts in real time.
3. Overcoming the “trust” gap
At present, the biggest problem with social e-commerce is that there is no trust building mechanism. Users and businesses do not know each other, and it is difficult to establish mutual trust. The distributed nature of the blockchain enables each node on the chain to keep a complete account book, and use blockchain and Internet of Things technology to trace the entire process of purchasing, production, circulation, and marketing of commodity raw materials, thereby eliminating The “trust” gap between brand owners, distributors, retailers, and consumers in e-commerce business.
4. Full transparent supply chain management
In the blockchain-based supply chain management, product information can be accessed through built-in sensors and RFID tags, thereby simplifying the source of goods and record keeping and tracking. With blockchain technology, we can not only know who the supplier is, but also which farm the eggs come from, and even which chicken laid the eggs. In addition, blockchain technology also enables retailers to avoid various unnecessary expenses of repeatedly hiring new employees, making inventory management easier, and effectively reducing costs.
5. Improve safety
The distributed ledger technology of blockchain provides advanced security for online database platforms. On the other hand, cryptocurrencies based on blockchain technology will not reveal the identities of the parties involved in the transaction, and pay more attention to privacy protection. For e-commerce, the use of blockchain technology is the absolute key to solving these problems.
6. Solve problems in the logistics industry
If blockchain technology is applied to the logistics industry, then in terms of logistics tracking, the combination of blockchain technology and Internet of Things technology can realize the transparent and traceable traceability of the whole process of goods from production, processing, transportation, and sales. Through blockchain and electronic signature technology, the whole process of document circulation and signing is on the chain in real time. Finally, automatic reconciliation is completed through smart contracts, thereby improving the efficiency of logistics, and the consignee can also track logistics information throughout the process.
7. Make the comments true
As we all know, in the e-commerce industry, the quality of product reviews can determine the order in which companies appear in the e-commerce market or platform search results. Some companies deceive consumers by fabricating false reviews. Blockchain technology can guarantee the authenticity of comments.
At present, an online shopping mall based on blockchain technology has emerged, and its model is an e-commerce platform with an equity distribution model. Unlike Taobao, JD, and Pinduoduo, consumers of Blockchain-Based e-Commerce have become shareholders of the platform. In other words, if you buy something in such malls, you will get equity in the corresponding mall.
After shopping, your equity starts to function. Every day, you will be given dividends on the platform profits that you hold equity. Even if you no longer spend on this in the future, there will always be dividends. Why can this be? Because there is a blockchain here, the data is open and transparent, and there is no tampering, so the fairness of equity issuance can be guaranteed. Such a model can only be achieved by blockchain smart contracts. The loyalty of Blockchain-Based e-Commerce customers is greatly improved.