Ecommerce has become a staple of modern life for most of us. It revolutionized the way we buy things by allowing us to do this from the comfort of our homes. It has grown to such heights that by 2021, over two billion people will do their shopping online.
Let’s see some of the biggest issues in the eCommerce niche.
One of the main challenges it faces is the monopoly held by a select few e-commerce companies, most notably Amazon and Alibaba. Amazon is gigantic – it holds about half of the eCommerce market in the United States.
Alibaba has the potential to do even better. Although 2018 could have gone better for the company, its growth remains yet unprecedented and may eventually take the lead in the market.
Holding the market reins, an e-commerce platform can get away with arbitrary practices and suffer little consequence. For example, Amazon lets its retailers send one, and only one, email to those who purchase their product through the platform, usually as a quality review to see if the customer is satisfied with what they bought.
An additional instance would be the lack of motivation for customers to cooperate and contribute to the overall quality of Amazon shopping because there is no reward for leaving detailed reviews or interacting with other users. In fact, a review black market is not unheard of on this platform.
Blockchain and Fixing Problems
Being a decentralized, transparent, and immutable digital ledger equally shared by all of its users, the unbalanced power brought to the table by a monopoly would largely cease to exist.
From the retailer’s side of things, decentralized blockchain systems would allow full control of the digital assets presented on the network, such as reviews, storefronts, and the like. Since every data change or transfer on the network needs to be approved by the majority of its members, they regain a significant hold over their products.
Consumers could get a lot of good out of the change as well. Because no single entity owns the entirety of the assets and a lot of red tape gets cut out, extortionate fees normally passed on to the customer are eliminated, resulting in a price dip for the buyer. Additionally, tokens can be handed out as rewards for giving back to the community by way of reviews or interacting with other users.
Beyond the aforementioned system holds a few more advantages:
- Since transactions in such a system do not include sensitive data but rather identity strings, you become far safer. The risk of your precious information getting stolen or abused becomes negligible.
- All transactions become much faster because no intermediaries are necessary on a blockchain network. This is a sharp contrast to the usual process which involves a series of steps and fees to verify and complete.
- The data stored within is tamper-proof and visible to all parties, meaning nobody can manipulate it in any way. This eliminates the chances of foul play occurring at all, let alone going on unnoticed.
With such a tremendous technological edge, blockchain is bound to overtake the world of e-commerce, leaving those who discarded it in a frantic race to keep up.
Bitfortune.net is the brainchild of Stefan Ateljević, its Head of Content and Casino Auditor, who strives to make the online gambling scene safer for everyone. His aim is to test online casinos throughout the net and tell you exactly which ones are worth your time and money.
Stefan Ateljevic, Head of Content and Community Manager at BitFortune. With an extensive background in content creation and love of all things regarding cryptocurrencies, Stefan passionately works to help people understand the benefits and potential of the crypto industry. Outside of work, Stefan enjoys learning about the new tech and innovations in the IT industry.