In both the financial and non-financial realms, cryptocurrency is a hot topic. Whatever industry you work in, you’ve probably heard of crypto, even if you have no idea what it is. Cryptocurrency is a form of digital or virtual currency system that is encrypted, making it nearly impossible to counterfeit. It’s a peer-to-peer network that lets anybody, anywhere send and receive money using digital wallets or exchanges like Coinbase. (https://www.coinbase.com). In the last decade, cryptocurrencies have increased in popularity. In 2016, there were 5 million identity-verified cryptoasset users worldwide, and by June 2021, there were 221 million. (https://www.bigcommerce.com/articles/ecommerce/cryptocurrency-ecommerce/)
Is Blockchain Disrupting The E-Commerce Space?Investors in a decentralized market can interact directly with each other rather than through a centralized exchange. Virtual markets that use decentralized currency, such as cryptocurrencies, are known as decentralized markets. A decentralized market uses a number of digital devices to communicate and show bid/ask prices in real time. To transact securities in this way, buyers, sellers, and dealers do not need to be in the same location. Many merchants may expand freely and easily as a result of this, and they are not harmed by worldwide changes in currency rates. This provides for easy identity management as the supply changes, as well as a significant reduction in the organization’s administrative expenditures.
Does Blockchain & Cryptocurrency Aid In Crypto-CommerceBlockchain’s foundation is the distributed ledger technology that underpins it (DLT). Records are validated by a network of computers rather than a single party or bank, and records are viewable by all parties rather than being held in a central database. They’re also unchangeable since once they’ve been recorded, they can’t be modified, reversed, or tampered with. When a buyer or seller sends payment information to the chain, a digital “block” is created and disseminated to the network. The organization, firm, or business must have a solid financial environment to run a crypto-commerce activity. The aforementioned ecosystem must be forward-thinking and adaptable, and the world of cryptocurrencies has evolved to include NFTs and, more recently, the Metaverse.
Benefits Of Crypto-Commerce
- Faster Settlements: Banks can conduct cross-border transactions 24 hours a day, seven days a week thanks to blockchain. The network is available 24/7, unlike banks, which can take up to five business days to complete transactions. Blockchain’s transparency and automation also save suppliers and buyers time and effort by eliminating the need to phone or contact each other and manually update their data.
- Frictionless Payments: The “smart contract” capacity of the technology enables automatic device-to-device interactions, obviating the need for traditional invoicing and payment processes. Orders can be placed with a single touch from equipment and sensors on the job site, in a factory, or even in an operating room.
- Fraud Prevention:The public, distributed ledger serves as a “single source of truth” for both consumers and suppliers. While blockchain may not entirely eliminate the need for third-party verification, it helps reduce settlement risk and makes it easier to track down fraudulent behavior.
- Prevents “False Positives”: Increased card declines for good accounts, delays in invoice processing, and a worsening of the buyer-supplier relationship may occur from tighter card fraud controls in the AR and AP departments. Blockchain facilitates more positive transactions and builds trust between parties because of its immutable record and network-based verification.