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eCommerce: Sales on DLT To Grow x5 by 2021

28 September 2018 08:58, UTC
Daria Burdina

According to statistics from the U.S. census Bureau, the prevalence of eCommerce market at the end of 2017 amounted to 9.1% of total consumer purchases. And these figures will only grow: for comparison, in 2007 this figure was 3.5%. In addition, such a format of cooperation as B2B has penetrated into eCommerce. This had a positive impact on the activities of such companies as Succeed Online, BlueJeans, Freund, Human Solution and others. According to statistics, in 2017 the total sales volume based on B2B amounted to $889 billion, and in 2018 to $954 billion.

Where is the blockchain, there is the quality

The growing popularity of cryptocurrency certainly has an influence on eCommerce. Even today, many large online stores (Overstock, GSR Capital) use blockchain: thanks to the new system, buyers can independently check the quality of products, and don’t idle away on numerous registrations on store websites. Previously, we wrote that large online stores are planning to launch an universal loyalty program, with which they will be able to encourage their customers, but also the program will encourage stores to create innovative loyalty programs.

In conversation with Bitnewstoday.com an expert in commodity science, Aimée Tañón, said that the development of eCommerce depends on the introduction of the blockchain. "The adoption of this technology and cryptocurrency by customers is now in the initial stage. The popularity of e-currency and blockchain will grow over the next 5 years in markets with more mobile and interested in technical innovations consumers”.  

How DLT speeds up the process of buying a property

Recently, in the field of eCommerce such a phenomenon as the sale and purchase of real estate through the blockchain has become popular. In 2017, in the US and Japan were first offered for sale of homes and Studio for cryptocurrency. Thanks to this, the process of buying a house becomes much easier and faster. One of the experts in the field of innovative support, as well as the founder and head of the project "Chapter Chain" Bitnewstoday.ru Benjamin CLAIR, noted that the introduction of cryptocurrency in the real estate system will change not only the process of buying a house or apartment, but also the mechanisms of trust between buyers and realtors: "Undoubtedly, the blockchain will greatly affect the real estate industry. This technology is capable of changing the mechanisms of mediation and trust in such a way as to accelerate the implementation of the largest transactions."

According to experts, the blockchain allows you to buy real estate without the help of unauthorized persons-realtors, investors, lawyers, etc. Nish PATEL, the Big 4 technology consultant and Strategic Advisor for Block Estates, a blockchain based real estate investment platform said in an exclusive conversation that the introduction of the blockchain system in real estate and eCommerce will solve many problems faced by the traditional real estate market: "Real estate Tokenization introduces investors to an easy way of investing, buying parts of real estate and not giving up huge amounts of capital. Thus, investors can diversify their portfolio, reducing risks and potentially increasing long-term profits. In addition, the transition to cryptocurrency improves market liquidity. Tokenization increases liquidity, as it allows a new source of funds from the cryptocurrency to enter the real estate market. As a result, realtors benefit from increased investment flows in their projects."

When asked whether cryptocurrency can replace real money in real estate, Benjamin CLAIR explained that "the widespread introduction of cryptocurrency as a means of exchange will largely depend on the creation of an appropriate regulatory framework". Regulation will make the process of buying real estate through the blockchain better.

According to Nish PATEL, in a few years there will be operationally effective real estate investment platforms that will make it easier to work with Fiat money and cryptocurrencies. “Such platforms will become market leaders and will supplant existing P2P real estate financing models if these traditional models do not adapt to technological progress.”

The future of eCommerce in developing countries

First of all, the boom of eCommerce using blockchain will occur in developing countries. Online purchases based on the new technology will increasingly be made by residents of Argentina, Brazil, India, Mexico and Russia. According to experts, the frequency of online shopping will increase in Latin America and Southeast Asia. Ecommerce penetration rates in these regions vary between 2-6%. Experts expect these countries to grow at an average annual rate of 31%, 32% and 16%, respectively, by 2021. Also in recent years, Indonesia has shown a rapid growth in Internet sales. Experts explain this by the fact that the mass population of Indonesia is increasingly gaining access to the Internet and blockchain.

In India, more than 32 blockchain firms were founded in 2016. In addition, Indian banks are preparing to move a significant part of the financial infrastructure to the blockchain. The obvious willingness to switch to the cryptocurrency system is explained by the fact that Indian rupees are not quoted on the market as successfully as bitcoins.

The same thing is happening in African countries. Fearing the collapse of the banking industry, Africans who don’t have access to banks and live in politically unstable regions are actively interested in the idea of switching to cryptocurrency. According to experts, bitcoin transactions will help to eliminate errors in traditional banking and financial services. In addition, various FinTechs are actively used in Africa. 41 FinTech companies are registered in the Republic of South Africa, which allows South Africa to stand on a par with Hong Kong, Switzerland and the Netherlands in the dissemination of financial technologies. And where FinTech is, there are bitcoins and eCommerce.