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Firms such as Fortune Business Insights and Grand View Research, estimate the global size of Blockchain applications by this 2022 between $7,180 USD to $11,005 USD with a compound annual growth rate (CAGR) of no less than 56.3% for the next 8 years.

A market size still modest, but with considerable growth potential, taking into account that Blockchain technology applications are just taking their first steps.

And a good part of this global movement, evidently, is oriented to eCommerce or electronic commerce as another sector that has experienced unprecedented growth since 2020.

Grand View Research indicates that most of the current applications of Blockchain technology in eCommerce are oriented to the segment of digital identity, payments and supply chain management.

Under the premise that the principles of blockchain operation such as distributed or decentralized records and encryption, confer security and transparency, in addition to improving the efficiency of the payment system and minimizing operating costs.

Without further ado, let’s take a walk through the news of Blockchain technology in e-commerce: advances, trends and eventual benefits.

The Blockchain will make eCommerce operations simpler, more secure, more transparent and more economical. Photo by

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Blockchain applications and their connection to eCommerce – An overview

As we anticipated in the introduction, the principles that underpin the operation of the blockchain, such as decentralization and encryption, attract large corporations who have already spent years researching how they can capitalize on the benefits of this technology in their business models:

A 2020 research published in ResearchGate gives as an example the large payment processing networks: Visa and Mastercard.

Even in the face of the threat to their business models from a decentralized payment and exchange network, they are working on Blockchain applications for their businesses that will obviously impact e-commerce such as:

  • Identity verification protocols
  • Anonymity in transactions
  • Simplification of cross-border payments
  • Improvements to their APIs to streamline processes
  • And gateways linking fiat currencies (common money) with cryptocurrencies.

IBM and Microsoft, to name a few big tech companies, have their own advances and service models based on Blockchain.

Azure the division of Microsoft for cloud services, has several lines of linkage with blockchain applications and in its portal promotes benefits, clearly adaptable to eCommerce such as:

  • Intelligent and efficient supply chains
  • Secure and expedited transaction validation
  • Fraud minimization
  • Up-selling and related services

IBM, on its side, is developing consulting services and Blockchain implementations under the pillars of risk mitigation, operational agility and cost elimination.

Specific Blockchain applications for different industries and case studies are available on its official website.

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How can the Blockchain benefit e-commerce?

You already sense it: fewer intermediaries or parties involved, cost savings, more secure transactions, transparency, logistical optimization, but let’s go more into the details.

Intermediaries and payments

In online transactions applicable to online shopping today, buyers pay a seller through the network and infrastructure owned by a third party, using traditional payment systems.

In the model proposed by the blockchain, decentralized records exclude participants in the process and the leading role is taken by the buyer and seller.

This not only reduces costs, but also the risk of data misuse.

In addition to the novelties of including cryptocurrency as a means of payment and smart contracts, as a security instruction inherent to the Blockchain, to seal transactions and enforce compliance of the parties.

Reduction of costs inherent to online transactions.

Complementary to the previous point, the Blockchain will make it possible for the millions of daily online commerce transactions to be executed without the need for the use of banks, accounts or third-party transfer applications.

Since each block will contain sufficient information to identify and perfect the transaction.

By dispensing with third-party applications, such as PayPal, credit cards or bank account charges, all inherent fees and commissions are eliminated, reducing costs in what technologists call a ‘decentralized marketplace’.

Security and transparency

Even with the information security measures with which eCommerce operations are carried out, the network can be hacked and information and money can end up in the hands of third parties.

With the records and validations distributed among the nodes of the Blockchain network, the encrypted data is decentralized almost in real time and the possibility of a malicious third party corrupting the system is practically null.

Identity management and data privacy

Connected to what is described in the previous points, the blockchain network also favors decentralization in the management of sensitive data, such as those necessary to validate your identity.

Biometric registration through a single identity manager or wallet, for example, will make it possible for third parties to access to verify data, but never come into possession of it, take a copy or make use of it.

In fact, decentralized information management is one of the pillars of Web 3.0 that is enlisted in the same operating principles of the blockchain.

Improvements in logistics and supply chain

Blockchain leads manufacturers, wholesalers and retailers to offer better transparency and visibility into their logistics and operational processes.

Unethical practices, such as using shoddy parts to assemble branded end products and then marketing or claiming them as genuine, or offering industrialized products as if they were organic, have no place in the traceability and unmodifiable decentralized information generated by distributed records.

For researchers Vaghela Pratiksinh and Hemantkumar Bulsara of the Indian National Institute of Technology:

Blockchain’s immutable transparency will make every stage of the supply chain accountable, allow customers to trace the origin of every product they have purchased, and provide real-time shipment lifecycle data to every member of the supply chain.

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Blockchain in eCommerce – Conclusion

With Blockchain technology eCommerce users will no longer need cards or payment processors. Photo by Olya Kobruseva –

Finally, we agree with the Central Blockchain Council of America that blockchain technology is a disruptive platform capable of increasing the credibility and efficiency of e-commerce processes.

The Blockchain creates an environment of trust and transparency in business transactions, based on the distribution of records, progress and simplification of business transactions.

Clearly large established players and new eCommerce startups, will keep abreast of the latest trends and integrations of the Blockchain into their platforms to enhance their operations.

As participants in the eCommerce ecosystem continue to embrace Blockchain technology new benefits will develop and the ways in which sellers can improve their level of service and bottom line will multiply.

That’s all in this installment, we hope it has been useful. If you have any questions or comments NU Technology specialists are here to serve you.

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