The ability to conduct business globally while ensuring security and transparency requires using complex financial instruments. Platforms like the bitcoin revolution develop the best trading algorithm that is exceptionally suitable for beginner bitcoin traders. Regarding trust between counterparties, finance is a game of give and take.
The blockchain introduces an element that empowers consumers in a way not seen before: the “trustworthiness” of counterparties can be reliably assessed by aggregating verified data across multiple nodes — even if they are anonymous or unknown entities.
In retail and e-commerce, no one likes to feel like they are being taken advantage of. The blockchain gives the everyday consumer unprecedented power by allowing them to verify their counterparty and the quality of goods, services, or assets being purchased in real-time.
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Fraud Prevention
A blockchain is a powerful tool for reducing transaction fraud on a global scale. We are seeing this take form in emerging markets where fraud is rampant due to weak governance and institutions, corruption, and lack of transparency in local banks, driving demand for Bitcoin — a proven store of value that allows individuals to store wealth at arm’s length from local banking systems that are susceptible to mismanagement or abuse.
For example, in Nigeria, where over 50% of the GDP is generated informally, and USD 20 billion was lost to corruption in the past two years alone, the unbanked can turn to bitcoin as a secure and reliable store of value or medium of exchange — without the interference or oversight of local banks.
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Cost Savings & Transparency
Finance executives have long hoped for a system that can connect counterparties seamlessly and at lower costs. Today, with blockchain technology, this is possible using platforms like Ripple and Ethereum.
The distributed ledgers on these platforms allow for near real-time transactions at much lower costs than traditional correspondent banking systems — reducing friction and increasing transparency throughout payment chains.
In addition, this transparent and secure ledger removes the perception of mistrust between counterparties, as blockchain-based transactions are published on a public record that cannot be altered or deleted without detection. It creates an irrevocable source of truth that can be relied upon in an audit.
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No counterfeit products in e-commerce:
Fraudulent goods are also hard to track, leading to expensive and time-consuming customer service calls and investigations. If counterfeit products are sold on e-commerce marketplaces, consumers can only shop confidently once they can verify the products’ authenticity.
The blockchain makes this more accessible than ever by allowing consumers real-time information about where the product they are purchasing is coming from, who it was made by and how it is made. Today, companies can create greater transparency around a product’s history, giving customers comfort that the counterparty is providing an authentic product.
If a seller fails to deliver on their promises, the ability of consumers to hold them accountable will become even more accessible through smart contracts.
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Better tracking of e-commerce packages:
For e-commerce purchases that require physical goods to be shipped, the use of blockchain will make instances of package theft less common. The blockchain creates a digital trail that cannot be erased by people, making it easy for consumers to verify the whereabouts of their goods at any point in the delivery cycle.
If a consumer doesn’t receive their package, they can verify the shipping location and carrier through the blockchain — helping eradicate issues such as missing packages and stolen goods. 5. Trustworthy Payments
In a world where most e-commerce transactions are still settled through credit cards and PayPal, payment fraud is a huge problem. Incidents can include buyers failing to pay for items or sellers receiving bad checks.
The blockchain brings trust to these transactions by providing a reliable source of truth for both parties to access in real time, making it easy for everyone to see who has paid who and how much was paid — all without any counterparty risk.
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Lower Enterprise costs
As companies become more accustomed to the cost benefits of blockchain technology, they will begin integrating self-sovereign digital identities into their enterprise systems. Blockchain-based identity solutions allow for the implementation of digital authentication, identity verification, and decentralized authentication systems — allowing users to prove who they are to access resources, services, or devices.
This trend is gaining traction in the financial services industry and can be extended to other industries. A blockchain-based digital identity solution is a fundamentally different model than a traditional identity system: it doesn’t rely on third parties for verification, it uses immutable ledgers that fraudsters or governments cannot alter without detection, and it automatically updates its information.
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Bitcoin lowers international transaction costs:
People can use Bitcoin to transfer funds overseas in seconds without any third-party approvals. Traditionally this process would take days, if not weeks, and cost substantial amounts of money — both in fees and in time.
Blockchain-based payments allow individuals to send money across the globe at virtually no cost and with far greater speed than ever before. Moreover, because blockchain technology reduces overhead costs, it also drives down the costs associated with cross-border transfers — potentially lowering these costs by as much as 20%.