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How blockchain will transform the e-commerce industry over the next few years Posted on : Jun 16 - 2018

Blockchain technology should be considered the most disruptive technology invention of the fourth industrial revolution. The world has never seen a technology as powerful as blockchain technology and it could potentially impact all sectors of the economy complete will transforming it through top notch efficiency.

Recently, blockchain technology has been employed in different sectors of the industry ranging from the financial services sector, to the energy sector, from logistics to supply chain management, from the health sector to the gaming industry, and is even being used in online gambling.

However, the sector it is aiming to transform, and hopes to have the highest impact on day to day consumer and seller activities, is the e-commerce industry. The e-commerce industry has arguably changed the way we shop and live, which to many people has basically become one in the same.

The convenience, affordability, and vast array of products offered by e-commerce platforms shows some of the benefits of the e-commerce industry, but with the growth of the industry (a global online retail market that is expected to surpass $4.5 billion by 2020), large e-commerce companies like Amazon, Alibaba, EBay and a large group of other companies which account for over 50% of that market valuation, the problems associated with e-commerce are beginning to emerge.

Some of these problems relate to payments, supply chain management, data security, transparent marketplace, satisfied retailers, efficient management systems, and satisfied consumers. The current e-commerce business model will have a hard time resolving all these issues in one fell swoop, with the only solution to these problems is blockchain technology.

In this section, I will highlight the different issues faced by the e-commerce industry and how it will be solved through blockchain technology in the near future.

1.Payments

The payment industry will greatly benefit from blockchain technology, just like the financial services sector has. Payment solutions for international e-commerce is far from perfect, and even with payment solutions like PayPal and Skrill, the payment industry still needs some reworking.

Using current payment methods comes with high payment processing fees coupled with the high fees charged by e-commerce platforms on any sales made by retailers using their platform. These fees often start from around 2-3% of the total purchase price of any transaction.

Blockchain e-commerce projects such as Request Network and ECoinmerce have an aim to create a blockchain based marketplace using fast and secure transactions for any e-commerce business model. Request Network also wants to utilize blockchain technology for the financial transactions aspect of the e-commerce industry by providing low cost financial transactions, high security standards, and an overall amazing customer experience. View More