Blockchains at the service of eCommerce – The odds are obviously favorable.
The blockchain era has arrived, and hundreds of industries stand to benefit from it. Only a decade ago, when only tech-savvy users understood and took advantage of blockchain’s use cases in Bitcoin and Ethereum, now its applications are breaking the barriers in all financial systems on local, international, and global scales.
And one of the most-awaited disruptions bound to happen is in eCommerce, where blockchain technology fits to a T.
Blockchain
A blockchain is an Internet-based digital infrastructure that records pseudonymous peer-to-peer transactions with cryptographic values and stores them into “blocks.” A timestamp makes the transaction immutable, and a hash links the new block to the previous block, and so on, to form a chain.
This process renders all blocks immutable and impossible to tamper with. As the blockchain employs distributed ledger technology or DLT, the recorded data is distributed in multiple computers all over the world in real-time. Thus, there is no single point of failure in the data storage as no single authority controls it, keeping all transactional data secure and free from any third-party intervention.
Because of its decentralized character, blockchain use is also growing in the medical field to store patient records, politics for election and voting, register of deeds for property records, and other use cases.
eCommerce
Electronic commerce, or eCommerce, is the conduct of buying and selling goods and services through the Internet. eCommerce also covers payment gateways, digital banking, online ticketing, and auctions.
We can look at giants such as Amazon, eBay, and Alibaba being examples of game-changing eCommerce dominance in the 1990s who took advantage of the financial system’s digitalization. Physical shops and storefronts that failed to shift and learn from the benefits of global internet penetration simply fell on the wayside.
With eCommerce’s competitive nature attracting entrepreneurs to follow in the success of the giants, employment demand is growing exponentially. It is estimated that by 2026, some 450,000 jobs will have been filled, that’s according to the U.S. Bureau of Labor Statistics.
The 99Firms’ eCommerce Statistics for 2020 reveals some interesting facts worthy of note:
1. eCommerce sales last 2020 reached $4.13 trillion;
2. By 2040, 95% of purchases will all be via eCommerce;
3. The U.S. registered the highest in eCommerce penetration rate, with 80% of internet users making at least one online purchase;
4. Operating 24/7 is the top reason why many people make online purchases where they can shop online at anytime, anywhere.
5. The abandonment rate for slow-loading websites is 75%.
A study by Market Intelligence reveals that:
1. China has surpassed the US to become the world’s largest retail market with $5.072 trillion in sales, and
2. The Philippines, Malaysia are leading the strongest eCommerce growing countries,and Spain, together with nine other countries projected to grow to over 20% in retail commerce by 2021.
The main reason for acceleration is due to the pandemic as these countries were hard hit by the coronavirus, although data shows there were already growing interests in eCommerce since 2019.
eCommerce and Blockchain
Transactions are the life of both eCommerce and blockchain. eCommerce can now count on more seamless, faster, and safer transactions that only blockchain can facilitate. It can efficiently handle the processing of payments, product searches and purchases, customer care, and other user activities.
With blockchain, users can now store or share their digital assets on automation, albeit securely. Ethereum is the ecosystem where eCommerce platforms can be built upon in the management of their own blockchains and tokens, while Bitcoin can be used to purchase items among online shops that accept it as payment.
Blockchain at the Service of eCommerce
The Reduction of Costs
The combination of eCommerce and blockchain can facilitate convenient payment processing, product descriptions, inventory management, along with other business activities. With blockchain, systems maintenance expenses are greatly reduced. The use of Bitcoin and other cryptocurrencies will eliminate costly fees usually charged by banks when mediating in transactions.
Eliminating Cyber Threats
Aside from competition, eCommerce platforms are constantly hounded by hacking attacks and cyber threats involving the loss of sensitive customer data and huge amounts of money. Blockchain’s DLT and its immutability can securely manage the storage of these valuable assets against such risks.
Faster Transactions
Before blockchain, traditional payment systems make users pass through 10 to 16 different steps with different parties from payment processors to credit card vendors, costing them up to 6% in total fees, not to mention the hours or days of waiting. The abandonment rate due to this alone has risen to 75%! Blockchain technology simplifies these steps outright by facilitating processes in a single network, thereby eliminating the need for intermediaries, resulting to faster transactions in matters of seconds.
Alternative Payment Methods
Blockchain technology allowed the creation of cryptocurrencies as an alternative medium of exchange to fiat or legacy currencies. With Xion Global as a blockchain-powered one-stop payment gateway, the #XGT token is used for the optimal benefit of retailers and buyers alike.
More Secure Payments
Blockchain allows pseudonymous transactions that keep the personal identification of customers intact. The use of cryptocurrencies and cryptowallets will safeguard customer data from theft or fraud. Payment transfer from buyer to seller can be done anonymously. This is what blockchain can contribute to an efficient payment processing that guarantees speed, privacy, and integrity.
Better Order Fulfillment
Blockchain records the entire order placement, payment, fulfillment, and shipping process via a retraceable chain of blocks. It is also immutable in the sense that once verified, it can never be tampered with. One vital element that is generated is the trust that is established between all parties involved. With the transparency and open ledger that blockchain provides, it is highly likely that disputes will never occur.
Conclusion
It is predicted that by 2025, ten percent of the global GDP will be generated on the blockchain as financial authorities are currently studying the trading possibilities that blockchains can do. Paypal, Visa, and Mastercard’s adoption of cryptocurrencies has made eCommerce the next global phenomenon given that the pandemic jumpstarted the lucrative industry to leaps and bounds.
The odds are obviously favorable.
Xion Global on Blockchain
Xion is a decentralized finance application, where you can earn up to 15% compound interest on your DAI cryptocurrency or you can earn trading fees when farming with xDAI. Both of which will reward you in XGT tokens, however farming will earn you more XGT than earning interest. You can also use your XGT to purchase products from our Xion merchants listed on our Shop page and get up to 100% cashback rewards in XGT from credit card and crypto purchases.
Pioneering
Xion Global was founded to fulfill a need. After spending several years working with multiple eCommerce and payment solutions, it became clear that there was no single unified eCommerce platform. Xion set out to change this.
Challenging existing practices and constructing a new business model for eCommerce, businesses and customers are empowered with a decentralized eCommerce platform that simply works.
We want to allow companies of any size to create, sell and manage their products/services online without the need for intermediaries or 3rd party providers. This frees up time for businesses to serve the needs of their customers more effectively, leading to greater satisfaction and better business results.
From young entrepreneurs to CEOs of established businesses, our decentralized platform will enable business growth and allow more and more people to become financially free & independent. When your system runs on autopilot, it is much easier to maintain a stable business and plan for expansion.
