Advances in fashion, e-commerce, and technology often go hand in hand. Today, people can virtually try on clothes to see what they would look like because of technology. We abandoned the Barter system for more accessible transactional ecosystems. Once again, two aspects of finance and e-commerce can come together to create a unique ecosystem that will change the way we purchase goods and pay for them.
Let’s talk about the three components of this article – Blockchain, Cryptocurrency, and E-Commerce. First, let’s revise the basics of Blockchain and Cryptocurrency to see what we are dealing with here.
What are Blockchain & Cryptocurrency?
Blockchain refers to a virtual distributed ledger that is used as a record of transactions. These transactions are encrypted with cryptography to protect them from any third-party attacks. This digital ledger has a record of every transaction that is fed into it by its users.
It’s a peer-to-peer transaction system that is the world’s safest way of exchanging or sending money to loved ones. Furthermore, Blockchain makes it easy for users to transfer large sums of money without paying hefty taxes.
Cryptocurrency, on the other hand, is a digital asset. It’s just like money, but intangible. You can’t hold it, touch it, or store it in a physical form. You can, however, collect it on your hard drive if you would like an offline way to access your cryptocurrency.
There are three different types of cryptocurrencies – Bitcoins, Altcoins, and Tokens. Bitcoin is, by far, the most well-known cryptocurrency and also the one with the most market value. In fact, Elon Musk recently announced that he will be accepting payments in Bitcoin in exchange for a Tesla.
This is where, my friend, e-commerce comes in.
How can Blockchain and Cryptocurrency Help E-Commerce?
To answer this question in simple words would be difficult. However, it’s a concept that we have been following for more than several decades now. You pay someone money to deliver you goods. At first, it was newspapers, fliers, and now we have financial empires built on that very idea.
Financial transactions are an integral part of the E-Commerce environment. E-Commerce websites for goods like clothes, accessories, and merchandise charge money with a nominal fee to deliver their commodities. We use the money in our bank accounts or cash on hand to pay for these things.
With Cryptocurrency, you can make quick transactions for your E-Commerce needs. At the same time, Blockchain can act as a large database system to store transactional information and other data. The exceptional part of storing information through Blockchain technology is that once the data is entered into the system, it’s impossible to tamper with it.
This model of storing information can help E-Commerce companies keep better track of how, where, and which of their goods are being transported. There are various ways in which Blockchain and Cryptocurrency can help E-Commerce websites.
For example, let’s say you make a purchase from an E-Commerce website. Now, the product you received has some sort of fault in it, so it needs to be returned. You put in the request for a return and soon expect your money to be reflected in your bank account.
Here, the E-Commerce website can instead offer you to exchange your product or give you back a digital asset that can be used to buy anything else on their website. That’s what cryptocurrency essentially is – any digital asset that can be used as a mode of payment or investment. You just have to know how to use it.
Blockchain and Cryptocurrency can solve a lot of problems for E-Commerce brands. They can make money transfers faster, reduce cyber threats, reduce transaction fees, boost trade, and much more.