Why Does Blockchain-based E-Commerce Have Such a Huge Potential?

Why does Blockchain-based E-Commerce have such a huge potential

Blockchain is a disruptive digital technology that has the potential to change the way online transactions and trades are made by removing the need for intermediaries and/or centralized authorities in digital dealings. There are a number of ways blockchain technology can help industries ranging from digital payments to finance, e-commerce, healthcare, e-voting, and more. In the case of e-commerce, it can help make online shopping transactions more secure, affordable and overall efficient.

Let’s see how a blockchain-based e-commerce platform can help change things for the online shopping industry with the example of the Libra ecosystem.

What is Libra?

Libra is a utility token and digital currency created for the Libra Ecosystem, which is a blockchain-based e-commerce platform providing a seamless online shopping experience and services to customers around the globe.

The Libra Ecosystem utilises blockchain technology to make online transactions more secure, cost-effective, borderless and overall efficient. Here are other reasons why blockchain-based Libra e-commerce has great future potential.

Why Libra Blockchain e-Commerce has Huge Potential

In the space of e-commerce, blockchain can help improve a number of applications and processes that have a direct impact on the end consumer, thus creating better experiences for online shoppers. Libra is a perfect example of this. Here are some of the benefits of blockchain technology in the Libra ecosystem.

Trustless e-commerce system

One of the biggest benefits of blockchain in e-commerce is that it enables e-commerce owners or operators to create a trustless system to allow a middleman-free exchange of goods and services. Since transactions on a blockchain are governed by smart contracts (code-based commands), users and merchants are not required to trust any intermediaries for transaction processing and security. All transactions on the Libra blockchain are automatically and securely processed by smart contracts.

Reduced intermediary cost

Since there are no intermediaries involved in blockchain-based online transactions, this helps improve security and privacy and reduces the cost of operations.

Decentralized e-commerce

Blockchain can help facilitate the development of a truly decentralized e-comemrce platform that is free of centralized entities and the true power lies in the hands of consumers. This not only helps improve user privacy but also reduces the probability of human-originated errors and failures.

Transparency and convenience

Blockchain can facilitate the development of a truly global e-commerce platform where all consumers, merchants and suppliers can come together to trade in a truly peer-to-peer manner with complete transparency in the supply chain. Moreover, blockchain can enable unified access to the consumer data securely stored on an immutable blockchain, allowing suppliers and merchants to make better business decisions.

Fast & low-cost digital payments

Cryptocurrencies are an essential part of the blockchain and a product that aims to revolutionize the payment industry through the introduction of digital currencies that are enabled for secure and fast cross-border payments. This will enable merchants to provide services to worldwide customers, and at the same time, enable consumers to buy products/services from international merchants with secure & fast payments. Moreover, due to the lack of intermediaries, cross-border payments with Libra cryptocurrency are fast and affordable.

Find out more about the Libra ecosystem & coin at Whitepaper.

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