Blockchain technology is the future of eCommerce since its sudden rise started five years ago. This technology’s popularity is growing day by day. The primary role of
blockchain-based eCommerce is to offer greater potential solutions worldwide. Blockchain is also a decentralized system of mutually connected computers around the globe. They are all working to produce a distributed ledger to record all transactions on the blockchain marketplace. This technology is additionally encouraging eCommerce to continue its development. According to the influence of this new technology and the number of satisfied users, blockchain has anything you need.
Maybe we should start from the beginning :
What Is A Blockchain?
A blockchain is a database working on the principle of saving all the transaction details. Why would someone use the database, and why not spreadsheets? Well, a database is mostly used for storing and quickly filtering information. On the other side, spreadsheets are designed for one person or a small group of people for collecting only a limited amount of data. In contrast, a database is used to access, filter, and search, especially for the larger amount of data. The extra plus for the database is the possibility of working with more than one user simultaneously. This is maybe the most important advantage of the blockchain eCommerce technology.
This technology was introduced to the crypto world in 2009 when someone hid behind the pseudonym Satoshi Nakamoto invented a cryptocurrency named Bitcoin. This person’s real identity remains secret to this day, but that was definitely a massive step in eCommerce development. Blockchain is saving transaction details in the form of “blocks.” It could track product searching, payment processing, and user activity. By combining all the elements, blockchain is forming smaller groups or blocks. All those blocks are mutually connected to the “chain.”
Pros of Blockchain Technology
- Ease of use is more than a significant factor, especially if you are a beginner or don’t have enough experience. Unlike physical currencies, cryptocurrencies are more than easy to use. You don’t need to spend money to create your account for handling these currencies. It comes with zero cost.
- Faster transactions are maybe the best thing about this technology. If we look back to an old way of money transaction, it would probably last about a few days. Today, things are much different. You can quickly transfer some money; it will be done in a few minutes, even for transferring across continents.
- Security is mostly the reason why people choose blockchain. Security is based on cryptography. That is a process of storing data in a particular form, so only those for whom it is sent can read and process it. Some private keys are assigned to the transactions, so it’s hard to hack them.
- Decentralization is a reason why it is harder to hack the blockchain. Nothing is stored in the central location. All of the transaction details are copied and evenly spread across a computer network. When we talk about adding new transaction details and creating new blocks, by adding a new one to the blockchain, every computer updates its blockchain to reflect that change. All properly done keyword research services show that when searching about blockchain, internet users are mostly adding the term decentralization to it, as the main benefit of this technology.
- Transaction fees mostly don’t exist on the platforms based on blockchain technology. Decentralized marketplaces enable payment with crypto tokens. There is no need to add credit card details.
These are some of the most important things to mention about blockchain. Platforms based on the blockchain can offer you more possibilities than you can imagine. It’s easier to use, faster, and security is on a high level. This is the prerequisite of having a successful platform and satisfied users. Because of all these benefits, blockchain-based platforms are getting much popular these days, and they are definitely going to represent the future of eCommerce.