Adopting Blockchain for eCommerce is the Next Sane Step to Take


Did you hear that?

Case Study 1:

Walmart tapped Blockchain solutions to improve transparency and decentralize the food supply ecosystem. After adopting Blockchain for eCommerce, Walmart can now trace over 25 products from different suppliers.


A sustainable, smarter, and safer food ecosystem

Case Study 2:

Unilever batted an eye on the Blockchain to handle the tea supply chain. Again, after adopting Blockchain for eCommerce, Unilever offset challenges faced by procurement managers by building a sustainable supply chain.


Better and quicker tracking of products

The eCommerce industry is tapping into Blockchain solutions sets three facts right:

  • Adopting Blockchain for eCommerce is more than a hype.
  • Efficiency in internal processes brings better sales and optimizes resources.
  • Transparency and sustainability lay the groundwork for a thriving eCommerce business.

But the real question still remains unanswered.

You might have heard, probably read thousands of definitions of Blockchain. But I bet, you might not still know what this technology is, albeit thoroughly. So, let’s understand Blockchain technology, block by block.

What is Blockchain Technology?

Let’s keep the ledger part aside. Let us even get rid of the term decentralized for a while.

Like its name, Blockchain technology is a chain of blocks, carrying crucial information in a secure manner. When I say secure manner, it means that it is tamper-proof. No manager or mid-level individual can overwrite the blocks withholding the information.

Now, the information can be about anything. It could be about the source of food, the process of food manufacturing, transaction history, or any process that has a starting point and an endpoint. The information is shared across various systems on a peer-to-peer network, which brings the transparency attribute to the foreground.

Blockchain technology is decentralized since it allows the information to flow to the right set of people without the involvement of any individual. Going by the theory of ‘automation makes processes less prone to error’, the decentralized (no person to overlook the process), makes it reliable, safer, and transparent.

Let’s bring the ledger back into consideration. Ledger is nothing but the registry. When we say Blockchain is a decentralized ledger, it means that Blockchain is an online registry of information sent to and fro between different parties.

When was Blockchain Invented?

Some reports suggest that Blockchain was initially outlined in 1991 for safeguarding the document timestamps. However, we officially know that a mysterious person having a pseudonym, Satoshi Nakamoto, created Blockchain in 2008.

What is the Use of Blockchain?

As discussed previously, Blockchain technology can be used as a bedrock for any and every process under the sun. The potential use cases of the technology include but does not limit to supply chain management, online retail processing, money transfers, food safety, data storage, and digital voting.

What Technology is Used to Build Blockchain?

Blockchain is developed using two technologies to achieve anonymity yet integrity for any process:

  • Asymmetrical Cryptography: Asymmetric means different. When two people are using an online portal for carrying out a conversation or an online payment, they hold different types of keys. One person carries a private key while the other person carries a public key. The use of different keys for tapping into a single purpose makes it difficult for hackers to get through the encryption. The two different keys create a digital signature that controls the accessibility of an information block in Blockchain technology.
  • Shared Ledger: Shared ledger means a shared registry amongst peers. It is a data set or points of information synchronized and distributed amongst people having access to consume the information. The best example of a shared ledger is Google Docs. The app allows users to share the access, thereby making a document act as a shared ledger. The shared ledger eliminates the need for a central authority and makes it a distributed network.

Enough of the frequently asked questions about Blockchain, let’s get to the centre of the pie.

The term eCommerce Blockchain is being widely used for the adoption of Blockchain in the eCommerce industry. Since the industry is flourishing with tons of data added at every node of project view and transaction, Blockchain technology finds its application in securing and storing data.

eCommerce Blockchain provides a high grade of data security, converting transactional and informational data into blocks. The data is stored in a chain of blocks, storing multiple layers of information. Hence, segregated information from different blocks makes it difficult for anyone to gain the information.

Adopting eCommerce for Blockchain can ensure the utmost efficiency for businesses.

How Does Blockchain Work for eCommerce?

eCommerce is the hot industry to mould Blockchain and cast profitability. However, to understand the benefits of adopting Blockchain for eCommerce, you will need to get to the base of the concept.

Here is a deep understanding of how Blockchain works:

  • The public and private keys together form a digital signature for ensuring consent and safety.
  • The key holders undertake several numerical verifications and agree to a particular value.
  • The person sending the information or initiating a transaction announces it over the network.
  • The validation process begins after the block is broadcasted across the network.
  • Miners solve the numerical puzzle to process the transaction.
  • After solving the puzzle, miners are rewarded with Bitcoins.
  • When the nodes in a network are in compliance, that particular block is added to the existing Blockchain and is time-stamped.
  • The information about this new block is updated across the network.

How can Blockchain Benefit the eCommerce Industry?

Blockchain technology with distributed ledger has been solving the challenges of the eCommerce industry. Since eCommerce and Blockchain include transactions, the technology enables faster and secure transactions. Besides transactions, Blockchain solutions also manage user activities–product searches, payment processing, customer care, and product purchases.

Below are the most acclaimed benefits of adopting Blockchain for eCommerce industry:

  • Cost Reduction: After adopting Blockchain for eCommerce can bring convenience in inventory management, product descriptions, payment processing, and other internal operations. eCommerce businesses can reduce their overhead costs on system maintenanc
  • Cyber Threats: Competition is one of the crucial influencers for online retailers. Competition also means many prying eyes to your data. As a result, your data is always at stake. To secure your eCommerce business, you can develop Blockchain solutions for adding a safe layer to your business with limited access.
  • Fast Transactions: Get or make your payments faster with Blockchain solutions. Fiat money requires many levels of authorization from officials, banks, etc., which delays the transactions. However, adopting Blockchain for eCommerce would mean convenient and expedited transactions.
  • Improving Trades: Most of the eCommerce businesses are in the first and second world countries, which limits them to the potential growth from the third world countries. As a result, Blockchain technology proves instrumental in tapping trades into and from third-world countries.

Do Away with the Traditional. Blockchain is Revolutionizing eCommerce

Go offline for a week and I bet when you are back, you will see something new with eCommerce. Even saying a week would be an understatement. That is the speed of transformation.

eCommerce is one of the most lucrative industries of the era. Under the influence of COVID-19, eCommerce has further thrived into being an essential part of life, which only implies that more revolution is on the cards.

With the advent of Blockchain and its potential use in eCommerce, we can already see paradigms of the industry shifting towards being decentralized. We can foresee the future more clearly for your business if you are up for adopting Blockchain for eCommerce.

Here’s what our eCommerce experts have to say about Blockchain in the foreground

  • Payment Methods to Evolve: It is a no-brainer that payments are becoming more convenient and diverse in nature. However, have you ever wondered about offering cryptocurrency as a payment method to customers? Numerous companies have started researching and implementing a cryptocurrency wallet for their customers to make payments using virtual coins. In the future, it is estimated that the trend of cryptocurrency payments will turn mainstream.
  • Supply Chain Management to Improve: One of the most complicated aspects of an eCommerce business is the supply chain. Being a pressing concern, numerous businesses are moving towards eCommerce enterprise solutions. However, enterprise solutions along with Blockchain solutions can provide ultimate efficiency to internal processes. Adopting Blockchain for eCommerce would mean inching towards a less corruptible and transparent system.
  • Fast Transactions: Get or make your payments faster with Blockchain solutions. Fiat money requires many levels of authorization from officials, banks, etc., which delays the transactions. However, adopting Blockchain for eCommerce would mean convenient and expedited transactions.
  • eCommerce Marketplace to Turn More Transparent: We are in the era, wherein some eCommerce businesses are growing, some are advancing, and some are reaching their ultimate stage. In such a case, it would be fair to say that competition within these businesses is fierce. In order to attract a wider pool of customers and differentiate your brand, it is advisable to focus on transparency. With no centralized authority to overlook and override, adopting Blockchain for eCommerce can be an absolute game-changer for your business.
  • eCommerce Businesses to Become More Secure: When a customer makes a purchase to an eCommerce store, he/she reveals more than necessary personal information. On top of that, several cyber attacks lead to lost customer trust. Besides this, there’s this threat of losing personal data. All of the above make the eCommerce ecosystem vulnerable. On the contrary, payments made using cryptocurrency don’t imply sharing personal and identifiable data, thereby securing the identity of users.
  • eCommerce Businesses to Become Genuine: How many times have you come across fake or paid reviews? Probably, a zillion times. Such reviews don’t only hurt the brand but also change the way customers look at your brand. And, mind you, that changed perspective is not at all good for retention. In such a case, adopting Blockchain for eCommerce can help you differentiate fake reviews from real reviews and assist in curbing the nuisance associated with it.

Possible Use Cases of Adopting Blockchain for eCommerce

  • Blockchain for Cryptocurrency: Cryptocurrencies are gaining a modest foothold in eCommerce for mega purchases. However, there’s still a lot of ground to hold. Right from 2016, about 11% of Eastern Europeans use cryptocurrencies as a replacement to cards and fiat currency, in general. Other parts of the world are quickly falling for the trend and embracing the new currency to make their purchases. Today, cryptocurrency may be available for big purchases but in the near future, it could be used to make day-in and day-out purchases.
  • Blockchain for Fraud Protection: We have often seen Blockchain being a synonym to security. While there is no one door to frauds, online payments do make eCommerce a breeding ground for frauds and scams. One of the highly popular cases is chargeback fraud, which is also known as payment reversal. Instead of filing a complaint against the fraud, customers often claim a refund, which disrupts the seamless eCommerce model for merchants. However, there is little room for fraud and payment reversal with cryptocurrencies.
  • Blockchain for Data Protection: One of the best advantages that eCommerce merchants have over offline store managers is data. You can’t track what aisle a customer is looking at. However, you can pinpoint the exact need, rather want, of a customer by merely scrolling through your eCommerce website. Again, too much data lures many data breaches and puts a puddle into your brand’s reputation. However, using Blockchain for eCommerce is a surefire way to hand over the data control to users.
  • Blockchain for B2B Transactions: With eCommerce, we see no physical boundaries to purchases and payment. However, when it becomes a frequent flex, you need to see the concern. Cross-border transactions and payments include multiple intermediaries, which lead the cash to change hands and decrease in value every time it moves to the next hand. Commission-based businesses are flourishing, at the cost of cross-border transactions. In such a case, Blockchain emerges as a decentralized way to save you from middlemen and their commissions.
  • Blockchain for Reverse Logistics: It is a known fact that customers do not pay for reverse logistics but eCommerce companies do, at least in most cases. That roots from the fact that customers prefer free delivery at all times. If you don’t believe me, let me ask you a question. Why do you think is Amazon a giant retailer? Think Prime. However, adopting Blockchain for eCommerce can help resolve the issue and curtail additional costs. When the number of people involved in reverse logistics is reduced, naturally the amount required for handling goods decreases.

Bonus Section: Will eCommerce and Blockchain Go Hand-in-Hand?

It is natural to have the aforementioned question in mind, especially in the era when technology is overwhelmingly overpowering and reigning in the industries. Add to that, the underlying hype and short-lived gratifications.

Let me put forth the facts. When technology revolutionizes only one aspect of an industry, it may be fair to assume that it is hyped. But in the case of Blockchain, we have seen several use cases. Besides this, retail giants are staying invested even after running the pilot project with Blockchain in their respective eCommerce businesses.

Had Blockchain been an acute spike just to drop down to rock bottom, it would not have been trusted by Tesla for online transactions or PayPal.

Sitting in a position where we deal with the depth of technologies and industrial reformations, we see the adoption of Blockchain only improving at an exponential rate in the near future.

By the way, where is your eCommerce business heading towards?

Growth | Acceleration | Disruption

More About Author

Vishal Nakum

Vishal Nakum is a tech enthusiast with a passion for exploring the latest developments in the world of technology. He has a keen interest in emerging technologies such as Artificial Intelligence, Machine Learning, and Blockchain, and enjoys keeping up-to-date with the latest trends and advancements in these fields. Vishal is an avid learner and is always on the lookout for new ways to expand his knowledge and skills. He is also a creative thinker and enjoys experimenting with new ideas and concepts. In his free time, Vishal enjoys playing video games and reading books on technology and science.