In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet. https://twitter.com/MetaNewsroom/status/1575486040349245446?s=20&t=TpIDHfYcRCtVRMNrwYhWiA…
E-commerce is the short form of electronic commerce. It is the buying and selling of merchandise over the internet networks. It also involves the transfer of funds and the keeping of records to certify the transactions made. E-commerce is of three types; business-to-consumer (B2C), business-to-business (B2B), and business-to-government (B2G). The main reason for using cryptocurrencies in e-commerce is to get rid of third parties that control the transactions. This relationship can make online shopping much easier and safer since blockchain technology that backs up cryptocurrencies is safe from cyber-attacks. Read on to learn more about how cryptocurrencies and E-commerce can work together.
How are Cryptocurrencies Influencing e-commerce?
Many e-commerce companies like Overstock, Amazon, Tiger Direct, and New Egg have started to use Bitcoin and other cryptos as a form of payment. Despite the risk involved with the fluctuation of prices of cryptocurrencies, these companies understand the advantages this union could bring. These advantages include:
Cryptocurrencies operate 24 hours a day throughout the year since you can automate them. Also, their transaction times are almost instantaneous. Applying this technology to e-commerce will therefore cut the time it takes to prepare goods for delivery.
AIt will also be advantageous to the seller because they will deliver more goods to their clients per day.
Blockchain (BC) technology continues to disrupt many sectors of our lives. It provides a platform for developing solutions to the challenges we face today. Take the instance of crypto wallet hacks. Tech-savvy programmers can access crypto-wallets and clean them out.
That said, BC technology enables the development of innovations that help curb such challenges. It has done so through the sale of Non-fungible tokens and properties using blockchain technology. In Hollywood, movie studios are using smart contracts to control the distribution of movies. Musicians are also applying Smart contracts to curb copyright issues to their pieces of art.
Streamlining Online Shopping
International transactions are cumbersome, costly, and take too long to complete too. But cryptocurrencies can change that. They are open to everyone’s use and transcend the geographical boundaries of the transacting parties. International payments also help open up new markets in developing countries for e-commerce businesses.
The use of cryptocurrency for international trade will eliminate the need for costly currency conversions. Cryptos have a uniform valuation in all countries. They are the change that global businesses need to adapt to improve the quality of their services and increase productivity.
Cutting Transaction Costs
International bank transfers attract high fees. The banks charge high fees that discourage customers. This situation presents one of the biggest challenges that e-commerce businesses face. Since customers have different purchasing power, extra fees or taxes might scare some away.
The discount and interchangeable fees are a nightmare to both the seller and the buyer. The seller might also incur interchangeable fees from the issuing bank. This happens when he’s looking for foreign money to buy their stock overseas.
Credit card transactions are also not very friendly since they incur charges like payment gateways and credit card network charges. But since cryptocurrencies have much lower gas fees, they will make international transactions more pocket-friendly.
Enhancing the Transparency and Trust of Transactions
Cryptos make transactions transparent. The BC technology not only allows you to capture transactions it also displays them to the public. Besides the openness of this display, it is also immutable. So it’s easy to trace transactions back to the originating wallet addresses. Thus cryptos help check fraud and build trust between the transacting parties.
The robustness of crypto security systems makes them a trusted payment method. BC technology is impregnable while wallets store funds using state-of-the-art encryption. The immutable nature of the BC prevents cashback from happening without the wallet owner’s consent. Again, you can create new addresses for one-time payments. That way, your details remain safe even when hackers exploit the platform you’d traded on.
What are the advantages and disadvantages of using Cryptocurrencies in a business?
Cryptocurrencies also have pros and cons. When you decide to use them in conducting their business, you will expect to notice some changes in your profits. Here are some of the advantages that you will experience when you incorporate cryptos into your business.
- You will be able to reach more customers and make instant payments.
- Your transactions are safe and transparent in a way that will encourage your customers.
- You will enjoy the liquidity of cryptocurrency, which may bring you millions from merchandise sales
- You can see your crypto stash increase once the prices go up.
There are some problems that you might encounter once your business goes crypto. They include:
- When crypto dips and droughts happen, your business may lose a lot of capital.
- If you are in developing countries where people do not know more cryptos, your number of local customers might reduce.
What is in the future For e-commerce and Cryptocurrencies?
Cryptocurrencies are the tool of change that investors need to embrace in a push to improve their business output. Do not overlook the advantages of incorporating cryptocurrencies into your E-commerce business. When applied well, cryptocurrencies can grow your business in significant ways. Now is the right time for all international and local business owners to embrace blockchain technology. We conclude that cryptocurrencies and blockchain technology are the future of e-commerce and other businesses from this information. Deciding whether to adopt them or not is a personal decision. One thing is clear, though, adapting them impacts profits. Make it count.