E-commerce is an online business where one can sell and buy goods and services on the internet. These transactions are executed by transfer of data and money from one account to the other. E-commerce websites are built for secure web payments and financial transactions. With the invention of next-generation currency, the cryptocurrency financial and commercial transactions are much faster and secure. Blockchain technology is the next big thing that offers a distributed database providing unaltered public records of digital transactions. The chain of secured blocks is back linked and as a result they can be traced back to the very first block making it impossible to edit the records. The most interesting factor is the transparent and decentralized nature of these blockchain networks with no middle person, enabling secure online transactions between buyers, seller, and marketplace. Also, the customers can purchase online faster without disclosing their credit card or bank details.
Blockchain technology has motivated different sectors for creating new tools for secure and confidential database. Some of the blockchain based e-commerce solutions that are being implemented worldwide include (categorised on the basis of Blockchain used):
Hyperledger is an open source hub for blockchain development and transforming the way business transactions are conducted globally. The Linux Foundation which founded this platform in December 2015 today has more 100 members. The collaboration has a committee of more than 10 leaders having decades of experience in open source and strong contacts with several industries. Currently, number of projects are being promoted under Hyperledger that include Hyperledger Sawtooth, Hyperledger Iroha, Hyperledger Fabric, Hyperledger Burrow, Hyperledger Composer, Hyperledger Explorer, Hyperledger Cello, Hyperledger Grid, Hyperledger Caliper, Hyperledger Quilt, Hyperledger Ursa, Hyperledger Indy. An ecommerce startup Vaning uses Hyperledger Sawtooth to tackles key issues in e-commerce today. Also, ICO like OMNITUDE are being built using Hyperledger technology to revolutionize E-Commerce!
Picture source : https://www.hyperledger.org
Picture source : https://www.multichain.com
Quorum is Ethereum based distributed ledger that is ideal for applications requiring high speed and high throughput. The enterprise-ready platform by JP Morgan addresses the challenges of blockchain technology within commercial and financial industry. Offering support for both transaction level and network-wide, the technology has been developed to provide permissioned implementation of Ethereum. The key advantages of using Quorum over Ethereum are :
- Transaction and contract privacy through public/private state and utilizing constellation.
- Multiple voting-based consensus mechanism suitable for consortium chains.
- Network/Peer permissions management using smart contracts
- Higher performance
3 main components of Quorum (1)Quorum Node (2) Constellation — Transaction Manager (3) Constellation — Enclave
Picture source : https://www.jpmorgan.com/global/Quorum
• Simplification of expensive and long payment processes
• High level of security
• Enhanced verification process that reduces the risks of fraud or theft.
Logical Architecture Diagram
Picture source: https://www.elinext.com/case-study/mobile/ethereum-app-for-ecommerce
Enigma is a secure computational protocol that resolves challenges of decentralized applications. The two major issues in blockchain that are privacy and scalability are solved by Enigma technology. Enigma’s “Secret nodes” in the network perform computation on the encrypted data at scale protecting the privacy of data. By enabling a decentralized application to use private and scalable data smart contracts become secret contracts enabling developers to create valuable solutions. This Enigma protocol can also be used to take task orders from Ethereum by which a user of DApp can efficiently buy and sell their products.
Picture source: https://enigma.co
Coupit is a blockchain driven platform for e-commerce applications. Built on Neo blockchain the technology allows selling of products and services as well as earn rewards through a structured program. It resolves many issues like trust and reputation problems, broken affiliate programs, time consuming and expensive transactions, and fake reviews. The key features of coupit include
- Automatic distribution of referrers by an affiliate program at the time of sale.
- Dashboard that utilizes machine learning algorithm to gather customers insight.
- A trust program including a resolution center to handle sender/buyer claims.
- Loyalty program for the merchants
- Customer incentive and discount programs
- Traditional as well as cryptocurrency payment methods
Picture source: https://coupit.io
Coupit provides a decentralized platform for businesses to sell their products and services in an easy, transparent and systematic way. This reduces the time and cost of transactions and increases the speed of all transactions.
Blockchain technology has just entered the business world and gradually rising in the e-commerce sector, revolutionizing the way businesses are done. The decentralized blockchain platform creates easy and cheaper transactions that will lead the future market world. Though there are many challenges on the ways, the trustworthy platform can modernize businesses to the next level.
What is a Smart Contract?
Smart contract is a program stored on a blockchain which are executed automatically when a certain condition is met. These conditions are predetermined by the people who develop them. Smart contract in financial services means more trust and security as all permissioned participants have access to the same version of truth. The traceable, transparent, and irreversible transactions are carried without the need of a third party authority or legal system. The key promises of smart contract include :
- Smart contract is cost effective as it saves resources and operational expenses.
- Automatic and human free processing of this contract increases the speed and accuracy of transactions reducing potential human errors
- Being fully autonomous program removes the burden of third-party authority or legal system.
- They are reliable as data which once entered in the process cannot be deleted or altered. This is because blockchain transactions are encrypted and hard to crack. As each block is connected to the previous block, whole chain needs to be altered to change a single block.
Picture source: https://codebrahma.com/brief-intro-smart-contracts-endless-possibilities
Blockchain Transforms E-Commerce Perspective into a Decentralized Marketplace was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.