3 Immediate Blockchain Uses for Ecommerce Companies

Nearly 15,000 venues worldwide allow consumers to pay using cryptocurrency. This heatmap from CoinMap.org shows the distribution of those locations.

Blockchain technology offers much potential for ecommerce businesses. Payments, supply chain, and decentralized marketplaces are the three main uses, currently. But many more applications are in the works.

Recall that a blockchain is a “distributed ledger.” It records transactional data and stores it across many different computers. Combining transactions results in a “block.” Each block is linked to the block before and after it, thus creating a “chain.” Because the blockchain data is stored on multiple computers around the world, no single central authority controls the data, which gives blockchain the benefits of being secure, trusted, and for the most part unchangeable.

3 Immediate Blockchain Uses

Payments. Cryptocurrencies such as bitcoin use a blockchain to record the transactions involving that cryptocurrency. The cryptocurrency inherits those same secure transaction benefits associated with the blockchain without having to involve a middleman — banks, payment processors — which many mainstream currencies and transactions require. This takes significant cost out of the transaction, making bitcoin and other cryptocurrencies generally cheaper for both merchants and consumers.

Accepting cryptocurrency as payment has become easier as an increasing number of online merchants, physical venues, and consumers have adopted bitcoin and other cryptocurrencies. According to CoinMap, a site that tracks merchants accepting cryptocurrency, nearly 15,000 places worldwide allow consumers to pay using cryptocurrency.

Large online retailers such as Expedia, Overstock, and Microsoft, as well as thousands of Shopify store owners, all accept bitcoin, opening the door to many more consumers. The benefits for merchants are low or no processing fees, no chargebacks, international usage, and quick…

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