Feb 10, 2018

Blockchain – Technology is changing to the needs of users

Blockchain – Technology is changing to the needs of users

The technological revolution is taking all over the world by the name of Blockchain technology. Just adding the word to the company will immediately skyrocket its stock value up to 400%. One example is the case of On-line Blockchain Plc as its value on the market rose 394%, reaching £84 after changing the name. Another one is 360 Blockchain, a new private equity firm renamed last month, which saw shares rise by 300%. Or Bioptix, a Colorado-based company, nearly doubled its stock when it was renamed Blockchain Riot in early October 2017.

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The reaction of investors around the world to a “Blockchain” company poses many questions: What "Blockchain fever" really is? Will Blockchain truly be the future of E-commerce? Does it make any differences?

What is Blockchain?

The meaning of “Blockchain” can be simply understood as a series of blocks connected together to create a chain. The following block obtains information from the previous block to forms an unbreakable link that cannot be change or fake.

To be more specific, Blockchain is considered the "digital ledger" that uses cryptography technology. The system consists of multiple independent nodes capable of authenticating information without requiring a "proof of trust". It is possible to visualize Blockchain as a Google Docs file, which everyone can view but cannot edit or delete.

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It's no exaggeration to say that Blockchain is the core of everything on the Internet. Its birth creates a revolution that changes the way we know about society. Cybercrime will be thoroughly washed out of the Internet by a new way of security, ensuring data transparency, accuracy, rationality, and utility.

The blockchain is also creating a fever for institutions, analysts, experts, and investors from all over the world.

In the World Economic Forum Davos, Switzerland 2018, Blockchain is the most concerned topic. Christine Lagarde, chief executive of the International Monetary Fund (IMF), called Blockchain "a charming technology." IBM survey of The Economist shown that 9 out of 10 state agencies from around the world planning to invest in Blockchain to manage financial transactions, assets and contracts.

Still, will Blockchain make any significant changes in E-commerce? Can it compete with the current giants of e-commerce market (Alibaba, Amazon, and Ebay)?
Learn more: Blockchain in E-commerce

E-commerce before Blockchain Technology Applications

1995 - Craigslist.org. This is the first online shopping website, connecting buyers and sellers without providing any means of payment. The site has become a place for fraudsters.

2018 - Amazon, Alibaba, Ebay. We are still in the Golden Age of E-commerce. The industry is about to reach $ 4.060 billion value worth by 2010. Online retailing is now much more convenient and secure than its first form.

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- Ebay has partnered with PayPal to provide a faster and more convenient payment method. Still, the partnership will stop by 2010 and Ebay is planning to choose Adyen instead.

- Started out as a book-selling business, Amazon is now provided buyers with every product they can image.

- Alibaba uses Alipay as a free online payment platform from 2014.

Still, those giants of E-commerce have yet solved security and users’ rights issues. Regardless of their effort to prevent fraud and holes in the centralized system, once the hacker gets in then they can do anything with users’ information.

E-commerce after Blockchain

The major challenges of e-commerce will be solved completely and thoroughly by Blockchain application - Smart Contract. With its amazing features and high security from distributed ledge, Blockchain is the solution of the era for the global online retailer:

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- Optimal security: Hackers need to pass all the blocks in the chain to break through the security wall of Blockchain, which is nearly impossible due to a high number and complexity of block. Users’ data of transaction is totally safe with Blockchain.

- No unauthentic goods: Goods origin can be easily tracked down, even for consumers. Fake and copycat will not be a problem anymore.

- Low cost: Blockchain will definitely lower the cost of transactions. In the current E-commerce, each payment process involves several steps and consumes have to pay a large amount of separate costs. For example, according to Monetha's co-founder Justas Pikelis, his company’s payment process requires about 16 different steps and 15 separate fee for payment gateways. Each order made means that the item has gone through a long way to reaching the user with transaction fees range from 2% plus 0, 1 to 6% plus 0.7%, for each step.

- Faster transaction speed: Blockchain will fasten transaction speed and consumers don’t have to wait long to have the product in their hands.

Still, even with its amazing features offsetting the market's inadequacies,the “Big Boss” e-commerce are acting too cautious about this Blockchain technology.

- Amazon has yet to take applying Blockchain technology into actions. All they did is stay out of the game and watch. They also protect some domains related to virtual currency such as amazoncryptocurrency.com, amazoncryptocurrency.com and amazonethereum.com.

- Alibaba has just launched its Blockchain service to take advance of Cryptocurrency, not blockchain’s advantages in E-commerce. In addition, Alibaba's T-Mall uses Blockchain technology in logistics to track the origin of its cross-border supply chain.

- Ebay’s view of applying Blockchain technology has not stated yet but the company is considering accepting Bitcoin for payments with the hope that this could make Ebay the King of multinational e-commerce corporation.

On the other hand, this slow reaction of those gaints in E-commerce has set out opportunities for others and regained the balance in E-commerce. This will definitely the key to reduce costs and gaining trust from consumers.

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Rakuten, Amazon's biggest rival in the Japanese market, recently surpassed Amazon, Alibaba and Ebay to become the first e-commerce company. Integrating Blockchain technology into its online shopping service, Rakuten Super Points, launches Rakuten Coin, expanding its market share worldwide.

Another example is VRC Market. By being responsive in applying Blockchain 3.0 technology and Smart Contract, VRC Market creates a perfect closed transaction cycle, making every transaction fast and simple. On the base of Blockchain, we has improve the technology by developing its next generation 3.0, focusing on transparency, security, and privacy.

The boon of blockchain technology around the globe and the people’s reaction has once again confirmed the slogan that the founders of VRC Market: ‘‘If you want to lead, be a starter’’
Learn More: VRC3D Technology - Big Hit to Online Fashion Industry