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How Blockchain is empowering E-commerce

By CIOReview | Thursday, February 7, 2019

Edge-commerce is transforming the way of doing purchasing and transactions as mobile devices and online payments methods are in the rise today. Edge devices' communication with other devices that belong to different parties without any pre-established trusted connection among them brings concerns about confidentiality, malware, privacy, and intellectual property protection. Here comes blockchain ledger technology which opens doors for new payments methods. Following are some of the ways that e-commerce can leverage the technology:

Discovery: This technology facilitates the creation, maintenance, and enforcement of smart contracts at the time of sharing information and transactions in a business. It minimizes the costs of discovering, entering into, and managing buyer and seller relationships in the e-commerce environment.

Protection: The tech protects data, which is collected, stored and processed by verifying data cryptographically. It also tamper-proofs the data in a distributed ledger that is shared by all e-commerce participants. Also, it validates the integrity of the transactions before accepting them.

Predictability: Blockchain support automation of complex transactions through smart contracts by being deployed into cloud-to-edge environments. Smart contracts are self-executing programs and reside in the technology. They encapsulate business logic and conditions to determine when a contract is going to be executed and stipulate the transactional buy-sell behaviour.

Cost: Traditional payments processing fees are costly. E-commerce can use blockchain to cut the cost imposed by intermediaries by eliminating them. The tech enables sellers to aggregate various processes and systems in one place as payments, inventory databases, and product management. It wipes out the IT costs associated with maintaining and upgrading each separate system. 

Governance: The technology maintains an indelible, immutable, and shared record of all transactions in the e-commerce platforms. It provides a trusted audit trail that is necessary for individuals and businesses and shares transactional records for parties who transact on e-commerce networks.

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