One of the major applications of blockchain technology that we have seen in recent times is the disruption of the e-commerce industry, especially with the inclusion of decentralized payments using cryptocurrencies. Decentralized blockchain-based e-commerce systems are definitely better than traditional e-commerce platforms in many ways. Let’s discuss traditional e-commerce Vs blockchain-based e-commerce in detail here.
What is a blockchain-based e-commerce system?
As the name suggests, a blockchain-based e-commerce system is based on blockchain technology. In other words, such a system utilizes blockchain technology to provide peer-to-peer services, such as online buying and selling products and decentralized payments.
The Libra blockchain e-comemrce system, for instance, offers a range of e-commerce focused services including a decentralised global payment system (Libra Pay), fiat to crypto exchange, blockchain e-commerce marketplace, digital payment card, ATM, PoS for retail stores, and more.
How is the Libra blockchain e-commerce system is different or better than traditional e-comemrce systems?
A blockchain-based decentralized shopping/payment system like the Libra Ecosystem has many advantages over traditional e-commerce platforms.
One of the primary differences between the two is that a blockchain-powered system is decentralized in nature, i.e. it is not governed or controlled by any centralized authorities like banks. Basically, it allows people to transact directly with each other without needing third parties or intermediaries. This makes blockchain-based e-commerce systems more secure, convenient and cost-effective compared to traditional online business platforms which are largely dominated by centralized control. This also helps increase transparency in the e-commerce supply chain.
The Libra e-commerce system was particularly created to help solve the many issues of the traditional online business industry. These include the lack of payment options, the need for middlemen to approve transactions, lack of privacy and transparency, low security, complex supply chain, and others.
So, another difference between existing and new (blockchain-based) e-comemrce systems is that the new systems are more efficient and cost-effective. Not only does the Libra blockchain platform helps solve the e-commerce industry problems, but also it provides tools and services for a wide range of business objectives including investment, money transfer, money withdrawal, card processing, and more.
Generally speaking, a decentralized e-commerce system has many other benefits over a traditional one. For one, blockchain will enable e-commerce operators and sellers to trade globally and sell their products/services to a global audience with fast & secure, low-cost payments. In addition, it will help build a consolidated system or online community where suppliers from all over the world can come together and offer their products/services.
Thanks to blockchain technology, transactions in a decentralized e-commerce system are easy, fast and inexpensive. This is particularly important for online shopping portals, as they can now accept payments easily and securely from their international customers and also use cryptocurrencies like ETH and Libra coin.
Another difference is control and privacy. Decentralized e-commerce systems give more control to their users. In fact, many of these systems are fully controlled and operated by users only. This also helps ensure the private data and information, as well as funds of e-commerce users, are fully secure and in their own control. The Libra ecosystem, for example, doesn’t require users to share their personal info with the platform in order to make a transaction or payment.
For more details, visit https://libraecosystem.com/