Blockchain is the most recent way of forming data collection on the internet. This can be used to develop blockchain applications like social networks, messengers, games, storage platforms, etc. Information on a blockchain can be of any form; it could be telling you about the transfer of money, any transaction, or even an agreement between two parties. Blockchain will continue to improve and innovate a variety of industries. For example, blockchain in e-commerce has options to empower consumers. Moving on to know more…
What is Blockchain Technology?
Blockchain is a series of recorded data managed by a computer cluster. Every single block of this data is secured and bound to each other. It is like a democratized system because it has no central authority.
Blocks are the batches of transactions encoded, and each block consists of a cryptographic code that links one block to the other. Blocks not selected for being included in the blockchain are called Orphan Blocks.
It is the average time taken to generate an extra block. In cryptocurrency, when a transaction takes place, the shorter the block time, the faster the transaction.
How does it work?
- Blockchain aims at keeping a record of all data exchanges; each data exchange is called a “transaction.”
- A distributed system verifies these transactions.
- Once the transaction is verified, it cannot be altered; it is finally added to the blockchain.
There are two kinds of cryptographic keys:
- Private Key: This is more like a secret key. A private key is used for decrypting the messages. A private key is confidential to its owner. It is important to keep your private key safe and not share it with anyone. The private key is symmetrical and faster.
- Public Key: A public key is used to convert messages into an unreadable format. As its name suggests, a public key is made available to the general public via an accessible repository or directory. A public key is asymmetrical. And is relatively slow to encrypt or decrypt.
Blockchain is being used in many fields these days like:
Most cryptocurrencies, like Bitcoin, use blockchain technology to record transactions. Blockchain makes transactions safe even in remote locations.
These are the proposed contracts that could be fully or partially executed without any human interactions. Therefore, it is a safe way to ensure that all contract terms are carried out correctly. Moreover, it is a very transparent way of doing business, considering all parties involved are neutral and do not have emotions and thus no reason to cheat.
Financial Industries these days are implementing distributed ledgers to be used in banking. In time, blockchain can even remove any necessity for bank branches. Blockchain helps in clearing and settlement procedures. It can recreate trade finance for the world. It also helps in smooth cross-border payments.
Some of the latest video games are based on blockchain technology, for example, Huntercoin, released in February. Cryptokitties are how the blockchain is used in video games. It can be used to manage in-game currency accounts. To keep track of when a player wins various rounds or stages or levels. Blockchain is reforming the gaming industry, and more and more such games are being launched.
Is Blockchain Helping eCommerce Protect Business Data?
The main contribution of blockchain in e-commerce is transactions. It makes the transaction faster and safer and provides more features. Blockchain also helps in online sales. It keeps the data stored and secured and handles features such as product searches and selection, payment process, and customer care. Blockchain has a lot to offer to the e-commerce industry. It has eliminated the intermediaries as well as reduced complexities at all levels.
Another fact to remember is that this technology is the foundation of cryptocurrency payments, making it all the more crucial to the e-commerce domain. Even though e-commerce has made life way easier, there are still many challenges that this domain is facing. All this time, e-commerce was in search of strong back support to address the various challenges, and blockchain has risen to the occasion multiple times.
One of the major features of blockchain is that it provides a series of unchangeable data. This feature provides the customer with complete unaltered information regarding the origin, processing, and various components of the products they intend to purchase.
Another big benefit it offers is complete transparency in payments. As a result, it has made e-commerce a more reliable platform for doing business and purchasing products. Moreover, it fosters the trust of the customers, and considering all the transactions are recorded and cannot be edited by anyone, it further garners the buyers’ trust.
Blockchain offers high security along with providing faster processing speed and tracking options. Blockchain lowers international e-commerce transaction stores. It certainly has advantages over the existing method of e-commerce.
One of its biggest advantages is that it is cost-effective. E-commerce sellers can rely on several cryptocurrencies for running their businesses. In addition, cryptocurrencies help provide cheap, i.e., cost-efficient digital payment methods since no payment processes are involved in crypto transactions. Therefore, this method is efficient and cost-effective for sellers and buyers.
Blockchain has dependable data security, so it can not fall prey to weak encryptions. However, even the most well-encrypted system can get hacked. To solve this problem, blockchain created a decentralized ecosystem that cannot be hacked from one entry point.
Sellers adopting the blockchain-based system can protect sensitive customer data better. In addition, it stops hackers from accessing the seller and buyer databases.
Blockchain has made such an important mark on the e-commerce industry that it has become crucial for its survival. The right technology is right if you hope to make a future in the e-commerce industry. Blockchain help establishes customer trust, protects important data, and provides a safe and secure way to transact even remotely.
Aditya works as a Growth Assistant at AirTract.Com. AirTract is a social platform where people can ask questions, find answers, and share knowledge and experience. He has a Bachelor’s Degree in Computer Science Engineering and has worked in Digital Marketing for the past two years. He is also a voracious reader and a big sports fan.