Harnessing The Power Of Blockchain And Cryptocurrency For E-commerce
From an alternative currency cultivated by tech-savvy individuals to one of the most innovative technologies of the 21st century, cryptocurrency has come a long way in the last decade. Now widely regarded as a means of exchange without regard for borders, it connects individuals exchanging goods and services worldwide.
If you own an e-commerce business, you can gain a fortune from the explosive growth of cryptocurrency and blockchain technology. What if you are only just venturing into the field? You have nothing to worry about!
This article will cover the basics and highlight the advantages of cryptocurrency for your e-commerce business.
Cryptocurrency and Blockchain - what are they?
Cryptocurrency is simply an electronic form of payment, like money but virtual. Moreover, it is decentralised, i.e., not controlled by a central authority such as banks, etc., but by a network of thousands of computers worldwide without a central server.
All cryptocurrencies operate on a type of technology known as DLT. Distributed Ledger Technology refers to a shared database that records all information about a transaction across each point in the network utilising the database.
The most common type of DLT is Blockchain technology. Blockchain is a type of database that records transactions in a block-by-block chain of ledgers visible to everyone within the Blockchain. No intruder can alter or delete transactions. Thus, Blockchain effectively prevents the currencies or records of transactions from being stolen, changed, or duplicated.
Brief History of Cryptocurrency and Blockchain in e-commerce
Cryptocurrency has been used extensively as a means of exchange in recent times. However, with payment giants like PayPal, and several major e-commerce companies adopting digital currencies as a valid option for payment, cryptocurrency is poised to be the next disruptive thing in the world of e-commerce in coming years. Looking to cash in on this prediction, Facebook confirmed plans to launch its cryptocurrency known as Diem sometime in 2021, although a definite release date is not yet available.
Big conglomerates and Tech giants aren’t the only ones adopting cryptocurrencies as valid payment options. Several retailers have opened their arms wide to the option to pay for transactions with cryptocurrency. Overstock, airline operators - Virgin Atlantic and Norwegian Air, Pizza Hut, Burger King outlets in Venezuela and Germany are retailers that now accept cryptocurrencies as payment for their services. Even the Miami Dolphins, America's beloved footballers, intend to allow their fans to purchase tickets for the team's 50/50 raffle.
Isn't it just amazing how many businesses, organisations, sports teams, etc., are embracing the crypto-revolution? So why are they all taking this decision? To put it simply, they see the power of cryptocurrency. So let's review these powerful advantages of cryptocurrency and Blockchain and see if they'd be suitable for your e-commerce.
If you are not sure if adopting Crypto as a payment method for your e-commerce platform is worthwhile, our next post will show a list of benefits you will derive from adopting cryptocurrency as a means of payment in your e-commerce business.
What are the advantages of cryptocurrency and Blockchain technology for e-commerce?
