Blockchain technology is considered to be the most disruptive innovation in the fourth industrial revolution
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The world has not seen a technology that is more powerful than blockchain technology. It may have a potential impact on all economic sectors and bring them first-class efficiency.
In recent years, blockchain technology has been widely used in different industries such as financial service industry, energy industry, logistics industry, supply chain management industry, and medical industry. However, it may have the greatest impact on the e-commerce industry. The e-commerce industry has changed the way people shop and live, which for many people has basically been integrated. E-commerce is carried out by using microcomputer technology and network communication technology to realize consumers' online shopping, online transactions and online electronic payments between merchants, as well as various business activities, transaction activities, financial activities and related comprehensive service activities. Business operation model.
The emergence of the Internet has changed people’s trading methods. Buyers and sellers can reach transaction contracts remotely. However, because the transfer speed of funds is much higher than the flow speed of commodities, the flow of funds and logistics have been misaligned in time, which is similar to international trade. The method of medium letter of credit came into being: a third-party credit guarantee, and the e-commerce platform provided this guarantee.
The convenience and affordability of the e-commerce platform shows the advantages of the e-commerce industry. The e-commerce platform is a very convenient product trading platform that can carry a large number of product exhibitions and massive transaction data. However, with the continuous development of the industry, this industry also has problems in supply chain management, data security, and market transparency.
How to solve these problems through blockchain technology?
1. Payment
Like the financial services industry, payment methods will benefit greatly from blockchain technology. Payment solutions for international e-commerce are far from perfect. Traditional payment methods generally have shortcomings such as dollar-based payment, high handling fees, and long transfer time. Even with payment solutions such as PayPal and Skrill, the payment industry still needs some improvements.
Using the current payment method will bring high payment processing fees, and the third-party payment platform, as an intermediary between the buyer and the seller, will temporarily hold the money and charge a service fee of about 2%-3% for each transaction .
The decentralization feature of blockchain technology is "grabbing the job of the current third-party payment platform of e-commerce platforms." A new type of Internet financial system based on blockchain allows buyers and sellers to directly trade, and transactions are based on cryptographic principles. Based on trust, any parties who have reached an agreement can directly pay for the transaction without the participation of a third party, saving buyers and sellers' fees. Blockchain technology will provide the e-commerce industry with low-cost financial transactions, high security standards and a satisfying experience for all customers.
2. Supply chain management
This may be one of the most important aspects of the e-commerce industry. The e-commerce chain is a complex structure that is composed of logistics, information flow, and capital flow, and connects suppliers, manufacturers, distributors, and users in the industry together. The data verified on the blockchain network is indestructible, and blockchain technology can be used as a large-scale collaboration tool to adapt to supply chain management.
In the e-commerce supply chain, many types of data can be transmitted through the blockchain, including insurance, invoices, consignment and transportation, and bill of lading. A blockchain network will provide a transparent supply chain, allowing consumers to see the order flow of the products they buy, thereby helping to increase consumer confidence.
3. Data security
One problem with existing e-commerce platforms is how to store data. E-commerce platforms have a large amount of data. After consumers' personal data and payment data are delivered to e-commerce companies, they are stored on a central server that is vulnerable to cybercriminals, and the risk of data leakage is high.
The blockchain-based e-commerce platform is decentralized. There is no need to store the personal data and payment data of tens of millions of users. The blockchain platform is actually decentralized. Consumers are in this decentralized system. Store and control their own data, thereby avoiding potential data leakage risks.
4. Transparent transactions
The opaque transaction process is now the biggest problem facing e-commerce platforms. US President Trump also mentioned concerns about Amazon's transparency on Twitter. Blockchain technology can improve the transparency of transactions, thereby promoting trust.
With the help of these solutions provided by blockchain technology to help solve the inherent problems of the e-commerce industry, industry leaders such as Amazon and Alibaba have responded and are committed to the research and development of blockchain, while other companies such as Walmart and Unilever have already responded. Cooperate with large technology company IBM to develop blockchain projects.
Blockchain technology can improve the transparency of transactions, thereby promoting trust. Every transaction is recorded in a shared ledger and cannot be modified by anyone. Shared distributed ledgers provide security, transparency, and traceability.
Blockchain technology promotes the transformation of the e-commerce industry, using blockchain technology to solve the current problems faced by e-commerce platforms, the e-commerce industry will become more efficient and transparent. [This article is organized by mkz888z, please feel free to communicate! 】