Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Blockchain technology is gradually making its way into the e-commerce industry as a viable, effective solution to operational constraints.
Since the advent of digital currencies and the supporting blockchain infrastructure that backs them, a business revolution has been slowly taking place. Several industries and sectors across finance, supply chain management, manufacturing, retail, trade, and even entertainment are beginning to integrate blockchain into their processes. However, one industry positioned to experience a quantum leap from proper deployment and usage of blockchain is e-commerce. This is because e-commerce already supports the necessary concept of wireless transactions that could aid blockchain usage. As it stands, credit card payments are the preferred option in e-commerce. However, a more effective, faster, easier, and safer alternative to the credit card scheme could overhaul this go-to e-commerce payment method.
Credit card payments currently pose many problems and constraints for buyers and merchants within the e-commerce space. These include transaction limits, hurdles associated with payment conversions, and issues arising from traditional bank payment systems. In addition, e-commerce merchants also sustain high transaction fees, while buyers risk using vulnerable payment channels. Furthermore, the required infrastructure by merchants for this form of traditional digital payment scheme could be sky-high. These merchants usually seek out highly-experienced IT personnel with esoteric knowledge that is rare.
In addition, due to stringent KYC verification requirements, many merchants feel forced to adopt a ‘pay first’ strategy before verification.
E-commerce Looks to Blockchain for All-round Operational Improvement
However, an increasing number of e-commerce merchants are beginning to explore the power of blockchain in executing transactions. This trend has seen crypto fintechs quickly explode in popularity as they compete with the limitations of traditional banking systems. Crypto and blockchain provide a sustainable alternative for businesses to receive total service value. In addition, this decentralized technology also allows businesses to grow seamlessly beyond the scope of their respective localities.
Global blockchain deployment for e-commerce operations is still in its early phases. However, the emerging technology currently offers no conversion fee. In addition, merchants can also transact digital assets on exchanges at the best possible rates.
Tangible Instances of Blockchain Innovation in E-commerce
Tangible ways blockchain can innovate the e-commerce sector include securing customers’ data and fraud prevention in the system process. Since blockchain is a public ledger that tracks digital asset movement, it allows buyers and sellers to exchange data securely. Most importantly, both parties can do so without fear of third parties stealing their information. Blockchain can also create a tamper-proof record of transactions that ensures legitimacy and accountability and prevents fraud.
Blockchain usage in e-commerce could also see faster checkout times due to effective management of customers’ payment information. Furthermore, the decentralized technology’s efficient data management and storage could also benefit other e-commerce activities. These include logistics, effective tracking of parcels and shipments, an efficient customer data review system, and more straightforward returns and refunds.
1TN to The Rescue
1TN is a global IT crypto processing initiative capable of facilitating a seamless blockchain experience in e-commerce. The company enables merchants to receive payments in fiat, while buyers can make payments using the appropriate crypto. According to 1TN founder and CEO Denys Ustymenko, the cryptoprocessor would be the safest and most trustworthy platform. Ustymenko cites 1TN’s revolutionary security solutions for its touted capabilities. Furthermore, he also stated that his company has partnerships with leading IT players like Chainanalisys, Fireblocks, and Finerymarkets. All of these current and many more potential partnerships are planned to create a more exciting and safe e-commerce experience by applying blockchain technology.