The Future of eCommerce After Blockchain and Web 3.0 Revolution

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Blockchain is set to make e-commerce businesses a whole lot more profitable. This technology has already transformed the way that many companies do business, and it's only going to improve as time goes on!

Though e-commerce has seen immense growth and success, it still suffers from a few drawbacks. Most of these challenges are related to the centric nature that platforms have in their system - they depend on payment gateways or financial institutions for certain things such as processing payments rather than having access stored directly onto the blockchain which would solve most problems associated with current systems used today. But technology offers hope because companies big enough (and worldwide) have started hinting that blockchain might take over this industry once again.

With its potential to disrupt e-commerce, blockchain technology is set for big things. The most notable use case so far has been in finance where it's being used by banks and other financial institutions as a way of transferring money more efficiently without relying on traditional systems like Swift or Visa network that can sometimes be down due to their system getting hacked which causes transaction delays while they figure out what happened - this doesn't happen with Blockchain because everything happens automatically through.

I had talked about blockchain briefly in my article The Impact of Blockchain on the Retail, CPG, and Digital Marketing, let's touch on web 3.0 to drive the point home and discuss its effects on eCommerce.

Evolution of Web

The Web is an evolving space with new features being added all the time. In 1997, it was just a simple way to view content online without any interactivity or ability for users other than those at their computers - this web page could be viewed only on one device that had been specifically set up by you, that was Web 1.0!

We now live in Web 2.0, which allows users to create interactive websites with a global reach. The interactivity of Web 2.0 opened the door for the age of social media. Social media companies like Facebook (Meta), Twitter, WhatsApp, and Instagram allow people to share their lives with others and travel abroad without leaving their homes.

Web 3.0, also known as the Semantic Web is a way to decentralize and make more private our online life by connecting it with other technologies like artificial intelligence or machine learning algorithms that can process information easier than human beings ever could.

Features of Web 3.0 and Blockchain Infrastructure

• Open-sourced?– the Web will change from a privatized network to an open-source network created by the community. An open-source network allows all users to view the source code and contribute to the success of the Web.
• Semantic Web?– uses machine-interpretable metadata. Semantics allows machine learning and artificial intelligence to improve user experience by showing more accurate, relevant content.
• Decentralization?– the Web will change to a network of independently owned private computers connected using blockchain technology.
• Permissionless?– Anyone can participate or join without requirements or permission.
• Data Ownership?– each user retains ownership of their data and decides its use.

The implications of decentralization and blockchain technology in the area of data ownership are going to be immense. As we move towards Web 3.0, these new protocols will allow individuals to connect with an internet where they can own their time and data or be properly compensated for it--effectively overhauling what many see as today's exploitative web atmosphere where giant centralized repositories profit off our precious resources without any regard whatsoever toward whether those same people have been treated fairly by society at large.

Benefits of Blockchain for Business

Greater Transparency: With the help of blockchain, an organization can go for a complete decentralized network because this technology works on peer-to-peer networks or nodes which are responsible for carrying out transactions and validating them. Once validation finishes, each node keeps a copy of the transaction record. This way, the blockchain network handles transparency.

Enhanced Security: Blockchain comes with advanced security compared to other platforms or any record-keeping system. Every transaction is recorded according to the consensus method. After that transaction is encrypted and linked to the previous transaction using the hashing method. The security is so enhanced that each node of the blockchain holds a copy of a transaction and its history. So it is very difficult for hackers to compromise the transaction data.

Reduced Cost: Cost-cutting is the topmost priority for most businesses. By using blockchain, organizations no longer need to pay third-party vendors or mediators to verify trading partners. And also won’t have to review so much documentation to complete a transaction because everyone will have permission to access a single, immutable version.

Improved Traceability: In the traditional e-commerce process, it is challenging to trace goods. This can lead to several complications, including theft, counterfeit, and loss of items. Blockchain enables every party to track the products and ensure that it is not being replaced or misused during the supply chain cycle.

Increased Efficiency and Speed: In the traditional paperwork era, the transaction of anything is a time-consuming process. It is prone to human error and always requires third-party intervention. Streamlining and automating the process with blockchain brings efficiency and speed. In this process, every transaction record is kept by a single digital ledger and shared among all participants. So it becomes easier to trust each other without the need for numerous intermediaries. Thus, clearing and settlement can occur much quicker.

eCommerce Busines Model Strategies with Web 3.0

Web 3.0 offers a plethora of new features that allow you to find what your customers are searching for, whether it's on their desktop or mobile device! It is going to help the e-commerce community by providing limitless data of Cloud, allowing personal ideas for third parties, and a protocol that enables customized web content based on one's needs or preferences at any given time anywhere they are!

1. Subscriptions and Licensing

Web 3.0 licensing strategy will allow its client to modify their market products according to the demands and supply; this way, clients can increase or decrease different options as needed without affecting other users' subscriptions with them (e-com).

Unique benefits of subscriptions with Web 3.0: Limited time offer, choice-based subscriptions, it could be easily handled by both clients and customers, automatic renewals, and clear guidelines for every subscription.

2. Premium Services

Clients can enjoy the benefits of free service with additional features only available in paid versions. Web 3.0 will facilitate a premium service that provides satisfaction to all startups online, and it strengthens trust between the service provider and the user because of its high-quality features!

3. Advertisements

Web 3.0 is a revolutionary new way to advertise your business on the internet! With this, you can charge anyone who clicks through and views all of those advertisements - which means more money in advertising dollars for companies big or small alike. Web 3.0 has transformed the way people interact with each other and their surroundings, as well! Customers can now share brands on social media sites when they see something that interests them - all while your ad is running randomly during browsing sessions for others to take note of too if it so desires.

Blockchain Applications in E-commerce

Inventory Control: For instance, by incorporating blockchain into inventory control, retailers can decrease items from inventory as with some standard shopping carts, but can also order replacement stock when pre-defined thresholds are reached.

Digital Ownership: The tons of high-quality photos, product videos, reviews, and other information that are integral to any eCommerce website?are typically created at great cost to the store owner, but the ownership belongs to the e-commerce platform. However, with blockchain, retailers can have complete ownership of all digital assets including digital storefronts, product photos/videos, and reviews.

Loyalty Reward Programs: Blockchain can enable customers to benefit from personalized offers and loyalty reward programs. By securely capturing purchasing history and preferences on the blockchain, personalized offers and loyalty reward programs can be completely automated within the blockchain.

Identity Management: As more and more people are using online channels to conduct transactions, the digital footprints they leave behind are unimaginable. By protecting individual identities from theft and misuse, blockchain can help retailers build strong authentication mechanisms and encrypted digital identities for improved identity management.

Supply Chain Tracking: By using blockchain to track the supply chain, e-commerce companies can ensure that vendors stick to criteria that have been agreed upon and do not substitute products without notice – ensuring that transparency is maintained throughout the process.

Warranty Management: With blockchain, retailers can easily and efficiently store warranty information; manufacturers, retailers, and customers will all be able to access the data, allowing warranty information to be easily accessed and validated.

In conclusion

There is no implementation date for Web 3.0. However, there are some Web 3.0 technology applications currently in use.

• Chatbots?– use artificial intelligence to simulate human conversation. Machine learning enables chatbots to improve communication and response accuracy.
• Wearables?– are electronic devices worn on the body. Wearables use artificial technology to track and monitor information in real-time.
• Wolfram Alpha?– uses external data from websites and books to answer computational questions. It uses natural language technology to mimic the actions of a tutor.

With the implementation of blockchain, we can expect to see an increase in sales and customer satisfaction. It is expected that this industry will be more streamlined with increased transparency making it a welcomed change for both consumers as well as retailers who want their business on top!

The transformation from traditional eCommerce businesses into ones facilitated by blockchain technology has already begun; within five years seventy-five percent could reach blocking capabilities.

Forecasts suggest that global blockchain?technology revenues will experience massive growth in the coming years, with the market expected to climb to over 39 billion U.S. dollars in size by 2025.

Source: Statista

ChargeX?– May 2-4, 2022 |?Santa Monica (California) | In-Person?|?eCommerce

Retail Innovation (Former RetailX)?May?10-12, 2022 |?Chicago (Illinois) | In-Person?| eCommerce & Retail

Shoptalk Europe?– June 6-8, 2022 |?London?(UK)In-Person?|?eCommerce

Other popular articles by Mert Damlapinar:

Amazon's Click & Mortar Strategy and Tips for Retailers

Can We Truly Humanize the Digital Experience of Our Consumers? 3 Tactics

Enhance Your Customer Experience by Integrating Artificial Intelligence

Gaming Is Our Gateway Leading to Metaverse

Are We Agile Enough? How Can CPGs React More Quickly to Consumer Demand?

The Incremental Shift of Our Digital Life

CXOs Can’t Do It Alone, Digital Innovation Happens Collectively

How Smart Is Your Headless Commerce?

Why Micronamagement Is Bad Management

How Digital Business Strategy Leads to Digital Transformation?

The Impact of Blockchain on the Retail, CPG, and Digital Marketing

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About Mert Damlapinar

Mert Damlapinar has been in director roles for eCommerce, digital marketing, and sales, he's currently Global eCommerce Lead, Sr.Mgr. for Mondelez International. He holds a master's degree in Applied Business Analytics from Boston University, executive management certificates in Integrated Digital Marketing from Cornell University, and Applied Data Science from Massachusetts Institute of Technology.

He's currently working on his 2nd book.

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