Introduction:
The modern world has entirely changed the trend of business and marketing over the last few years. New technologies as AI, blockchain, fintech, and cryptocurrencies have revolutionized the concept of E-Commerce. We have been seeing more and more buying and selling happening online. The ongoing craze of online shopping is shaping new practices for business and challenges the proper management of the company’s 5 M (Money, Material, Manpower, Management, Machinery).
The rise of digital wallets is making way for E-Commerce more fitting. E-commerce retailer selling online, using cryptocurrency as a payment method can heighten customers’ journeys and enhance the consumer base by offering more choices at the checkout. This article will surely lead you to look at how cryptocurrency can be mixed into the eCommerce industry.
What is Cryptocurrency?
Let us begin by defining the term Cryptocurrency. Plain and simple, cryptocurrency is a digital currency that is not controlled by any bank or government. But it uses encryption techniques to regulate its use and generate its release. Every transaction that occurs is verified by users on a network. Generally, those transactions become public records to block the coin from being spent multiple times by the same user. The key to using cryptocurrency is understanding that each coin is unique and some coins offer more protection and privacy than others.
TheWallet is a modern invention to keep your money safe and secure in the form of soft coins. The coins are controlled through public and private keys which are related to security terms and conditions as all the transactions are confirmed by your fingerprint or password.
The Wallet works like a bank account number. As it has a unique system, the user can easily transfer money by knowing another wallet number without any delay and difficulty. Like a bank account number, the wallet remains safe because any user having your wallet address can
send you coins but no one can get coins from your wallet app without your confirmation. Moreover, it is away from the access of any authority. It is an improved form of physical wallet because it offers queues of stores which are close at hand, well managed, and easy to it in your use.
This very digital wallet saves your precious time by arranging all transactions in less than a minute. It stores the information about all transactions inside the app to make you able to analyze your balance to keep a watch on your expenses according to your budget as we
are concerned with your better future.
Mining and cryptocurrency
What is mining?
Blockchain is a digital distributed database ledger bearing multiple computers at the same time. It consists of all the information about the transactions. Each block is a record of transactions of specific data referring to the previous block that is linked to using cryptography. Each block stores a unique code called a “hash”. Hashes are cryptographic codes that are created by special algorithms. Once recorded, the data in any given block cannot be changed but without the permission of the network majority. It is the most secure way for mining as blockchain records are unalterable. Blocks record the purchase without any identifying information using a unique “digital signature. Blockchain is the latest technology in the wake of IoT and AI for traceability, supply chain clarity, monitoring, and audibility.
So, blockchain farms an effective chain of blocks to perform mining with inspiring perfection. There are various types of blockchains such as Public, Private, Permissioned, and Consortium Blockchain Networks having positive and negative features.
Public blockchain networks:
A public blockchain is a chain that allows anyone to join and participate in crypto mining. But it needs strong computational power having no privacy for transactions and weak security. These points are important for company use cases of blockchain.
Private blockchain networks
A private blockchain network works as a public blockchain but it is a decentralized peer-to-peer network. That organization checks who is permitted to participate in the network and keep the shared ledger. This peer-to-peer network significantly encourages trust and confidence among the participants.
Permissioned blockchain networks:
Companies that work on a private blockchain commonly promote a permitted blockchain network. It is important to record that public blockchain networks can be called a permitted blockchain network. Permissioned blockchain puts restrictions on personalities. Only selected people are allowed to participate in several transactions. Participants need permission to join the network.
Consortium blockchains:
A consortium blockchain is an ideal block for business. Multiple organizations divide the responsibilities among the participants to manage the blockchain. It is the most trustworthy block for mining. These pre-selected organizations decide who may offer transactions and access the data. All the participants need to get permission and have a shared trust for the blockchain.
How does blockchain work?
Blockchain works in a highly advanced and active manner to perform transactions. When a block adds new data it is stored to the blockchain. Each block confirms the transaction up to its capacity. Four things must take place to add a block to the blockchain. Firstly, transactions must happen in the system. The blocks group together possibly to perform thousands of transactions, so your purchase will be added to the block along with the information of other users' transactions. Secondly, transactions are verified through the blockchain. After making a purchase, your transaction is verified with other public records of information, like the Securities Exchange Commission, Wikipedia, or your local library. There is always someone in charge of examining new data entries. But with blockchain, this responsibility is left up to a network of multiple computers. When you make a purchase the network of computer runs to confirm the details about the transaction like transaction time, dollar amount, and participants. Thirdly, transactions are stored in a block. After the validation of your transaction, it gets green. The transaction amount, your digital signature, and digital signature are secured in a block. In this way, all details about the transactions of other users remain protected in the blockchain. Fourthly, when the transactions have been verified, they are labeled an identifying code called a hash. The block is also given the hash code of the freshest block to join the blockchain. Once the block is hashed, it becomes part of the blockchain.
Blockchain technology offers much potential for eCommerce businesses. At present, blockchain is growing speedily to bring a revolutionary change in the world of business. In e-commerce, user information leakage risk events normally happen from time to time. The application of blockchain in eCommerce assures the security of the e-commerce system. "There is no end to the list of applications blockchain can be used for. Blockchain is going to change everything and make our life easier over the next five to 10 years," said Mike Almeida, president of the Empire of ATM Group.
A blockchain is a “distributed ledger.” It records transactional data and guarantees the fairness and authenticity of the transaction. The blockchain data is stored on multiple computers around the world. No single central authority controls the data.
Basic Uses Of Blockchain:
A blockchain-based eCommerce can enhance the transparency of financial transactions. It strengthens the flexibility of processes. It will have a profound effect on the business model of finance, e-commerce, data storage, accounting, and payment methods. Blockchain is secure, trusted, and for the most part unchangeable.
Payments, supply chain, and decentralized marketplaces are the three main uses of blockchain in eCommerce. But many more applications are in the process.
Payments: Cryptocurrencies make use of a blockchain to record the transactions. The cryptocurrency inherits the same secure transaction benefits just like the blockchain without involving any central authority. This takes cheap charges for each transaction.
Holding cryptocurrency as payment has become easier in eCommerce. An increasing number of online merchants, physical venues, and consumers have accepted cryptocurrencies. CoinMap tracks merchants accepting cryptocurrency, nearly 15,000 places worldwide allow consumers to make payments using cryptocurrency. No processing fees, no chargebacks, international usage, and quick setup are the major benefits of cryptocurrency for online merchants.
Trusting cryptocurrencies is now as easy as setting up an account with a bitcoin processor. BitPay and Coinbase are mixing into the eCommerce site. A cryptocurrency wallet holds the funds and converts your cryptocurrency to U.S. dollars and local currency. All things payment-related, merchants have to ask their accountant and tax preparer to check their comfort with cryptocurrency payments.
Supply chain: The supply chain has become an important use for blockchain as it reduces the cost and complexity of the system. A great number of large retailers are using blockchain for that purpose.
Most retailers use the blockchain to remove the paper and manual work linked with international product shipping. For example, data from a bill of shipping for cargo shipments can be manually placed on the blockchain at each stage of the supply chain. It also removes the lengthy and expensive administrative process of approvals. This allows all participants to track the shipment through its journey, verify the product information (such as pallet weight) at each step, and know that the data is correct and trustworthy.
Similar opportunities are available for smaller merchants to eliminate costs. The blockchain helps confirm the validity and quality of the product sold by various merchants and convinces consumers that they are getting what they are paying for. Provenance and Codex Protocol are examples of such companies as help merchants achieve supply-chain blockchain solutions.
Channel expansion: Blockchain and cryptocurrency have revolutionized eCommerce in a decentralized way, creating marketplaces that offer anyone to present products for sale. Many of these marketplaces target special categories. Rare Bits is a marketplace for crypto-collectibles (one-of-a-kind digital goods). Wax is for virtual game items. More general marketplaces include OpenBazaar and BitBay.
Transaction volumes on these decentralized marketplaces get paled as compared to typical e-commerce volumes. Nevertheless, marketplaces provide an option for merchants. They are targeting a cryptocurrency-savvy community to expand the retail channel and welcome a decentralized model.
Advantages Of Blockchain in eCommerce:
Decentralized:
Blockchain is not controlled by any central authority. Only the buyer and seller control blockchain transactions.
Blockchain currencies can not be devalued by any bank or government.
Identity Protection
Cryptocurrencies based on blockchain technology don’t reveal the identities of the transacting parties. Still, these transactions are very transparent as centralized ledger stores the details and give visibility to transactions.
Cryptocurrency and E-Commerce:
E-commerce and cryptocurrency complete each other perfectly since both share the same home and plead to the digitally-savvy user. View cryptocurrency the same way you view your business. It is a secure and fast way to pay for goods and services. This craze explains the high demand for digitally-based payments online.
With cryptocurrency, there is no need to go to a bank, withdraw money before submitting payment at checkout. The world is driving digital payment as a great compliment to the existing services.
Advantages of Cryptocurrency in E-commerce:
Taking cryptocurrency as a payment method provides you access to the online market. payment through a digital wallet or a credit card allows you to appeal to consumers all around the world.
Unlike a credit card, Cryptocurrency works fast and gives you immediate access to funds without any delay. Fast transactions can help your business cash flow.
Another benefit of cryptocurrency is the low fees for each transaction. You will find the fees significantly less than the PayPal or Credit Card providers.
When you make a transaction it becomes impossible to change until you get the approval of the merchant. This feature offers more security to retailers. No authority can withdraw the funds from your account without your permission.
When you make an online payment using Paypal, you will need to have a bank account connected to that Paypal account. Cryptocurrency does not rely on agents. The transaction is done between the shopper and the retailer. This avoids the need for banks.
Android and iOS use and support cryptocurrency transactions. The combination of blockchain application technology and eCommerce has changed the marketing world.
What is Crypto Exchange?
Crypto Exchange is the interchange of a digital currency for another or exchanging of digital currency with fiat currency.
Crypto Exchange is the best option for the people who use to carrying out deals in the stock market. Traditional crypto exchanges deal in cryptocurrencies as against fiat currencies. During trading, a little amount is charged as payment.
This platform enables you to carry out exchanges on a peer-to-peer basis. They tally your purchase and selling prices with the orders of other users. Once the amounts match, the trade takes place. Crypto exchanges are useful in saving time and ensuring that the investment process is fully organized. They are used in monitoring the market and knowing the ideal time to sell or make purchases. If you trade cryptocurrencies with the help of your log in exchange and your wallet, it might be difficult for you to handle. You would need the usage of a high-quality trading tool for trading cryptocurrency.
CoinMarketCap: This is one of the top crypto trading tools. They have almost every coin on their list. You can use this tool to check the price history, trading volume, and all the available exchanges.
Blockfolio: This tool is a mobile application that helps you in tracking all your crypto holdings. You can on some alert settings which would inform you about the fall or rise in price. The application comes for free.
CoinMarketCal: This crypto trading tool is unique. It gives regular updates happening in the crypto world. For ICO updates, platform releases, airdrops, and the likes, you can be updated with what’s going on. CoinMarketCal assures that you are always ready to hit the market at the right time.
