Digital marketplace orchestrating millions of transactions and online networking daily are often marred with challenges such as payment delays, trust and relevant suggestions to better reach the target market.
Though the shift from offline to online has enabled cross-border networking and propelled business reach, but there are certain core areas that continue to haunt even when there is technology for everything.
Trust, security lapse and failed transactions continue to acquire the front row. Let’s try to connect these dots and see the bigger picture.
- Inability to sell if you are note a reputed seller
- No provision to digitally verify the user
- Maintain customer loyalty
- Develop and maintain a secure network
- Ability to maintain a vulnerability management program
- Implement strong access control processes
- Regularly monitor and test networks
- Maintain a security policy
- Reducing processing and payment delays
- Lost transactions
- Cross-border transactions
- Diverse payment methods
Considering the industry pain points, it can be understandably concluded that the industry needs a technology revolution to challenge the incumbent norms and accelerate innovation for better reach and customer experience. This is where Blockchain has stepped in as a boon for businesses envisioning to digital conquer the market.
Blockchain – a disruptive entrant in the digital sphere
Jack Ma, Co-founder of Alibaba Group, rightly said, “Blockchain technology could change our world more than people imagine.”
Blockchain technology, initially considered as a finance-centric technology, has now spanned its reach in almost all domains where trust, security and traceability remain a major concern. The rule-based intelligence of blockchain has the potential to completely transform digital marketplace where transactions can be seamlessly completed with the help of smart contracts – a computer program that directly controls the transfer of digital currencies or assets between parties under agreed conditions.
Consumers are now engaging more in a peer-to-peer manner fueled by blockchain-based platforms instead of a central gatekeeper.
There are three core blockchain elements that can help develop smart online marketplaces
Smart contracts are agreements that are digitally signed by each party to prevent any kind of fraud and eliminate third-party payment processing fees. They are:
- Automatic (without any intermediate)
- Publicly stored
Smart contracts can be operated underneath a set of conditions depending upon the users’ agreements. When those conditions match, the contract is executed.
Online marketplaces can implement smart contracts to track transactions, monthly subscriptions and agreements between platform users. It also helps to resolve possible disputes.
The decentralized ledgers of blockchain ensures that:
- All transactions are copied and spread across a blockchain network
- There is no centralized authority or information store
- Whenever a new block is added to the blockchain, the network is updated to reflect the change
Blockchain technology helps to track every transaction. It provides improved order self-actualization traceability. Each step in the order processing adds a new block in the chain along with the time and actions that were performed.
Furthermore, decentralization means that there won’t be any intermediaries between sellers and consumers.
In any case, if a dispute arises between a seller and consumer, a trusted third party is required:
- It can be the blockchain platform which seller and consumer agreed in advance or any individual in the network.
- A mediator will receive the keys to decrypt messages between the seller and consumer.
- A mediator can decrypt the contract and talk with both the parties to resolve the issue.
Cryptocurrencies are digital assets that are based on cryptography (an encryption technique – for security). Cryptocurrencies are basically used to buy and sell products and services.
Number of Blockchain wallet users worldwide from 2nd quarter 2016 to 2nd
Buying products and services with cryptocurrencies does not require disclosure of identities as it takes place online. It offers transactions with pseudonymity – a near-anonymous state.
With cryptocurrency, consumers can complete purchases without providing any personal information to the merchants maintaining anonymity.
Cygnet’s blockchain capabilities for online marketplaces
Cygnet has an experienced blockchain development team working on multiple blockchain powered marketplace projects for media, entertainment and advertising.
Recently, blockchain team at Cygnet delivered an exclusive solution on state-of-the-art blockchain technology for the world’s largest podcast hosting, distribution and monetization platform in North America.
If you are looking for a technology breakthrough for your business that overcomes trust, security gaps and payment glitches for your business, get in touch with our blockchain solution experts at +1-609-245-0971 or firstname.lastname@example.org.