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Blockchain technology is transforming every industry, unlocking more potential with new markets and regions. When talking about blockchain technology and its impact over eCommerce, the focus has been 100% on B2B payments. However, recently there has been a significant shift towards blockchain’s impact in B2C (business-to-consumer) and C2C (consumer-to-consumer) markets. Even though blockchain’s adoption and influence over these platforms is still progressing, one thing is clear - blockchain has the power to reach new heights for customers and sellers.
The Evolution of E-commerce Platforms
Due to the Covid 19 pandemic, many changes in people’s shopping habits happened artificially, replacing traditional windows shopping with online ones. Even though it is defined as “artificially” it was bound to eventually happen organically.
Let’s take Amazon as a perfect example in the B2C space. During the Covid pandemic 4 years ago, the company registered immense growth and profits. Similarly, C2C platforms like OLX, which enable users to buy and sell goods directly from each other, have also seen an increase in traffic and profits. In the U.S. alone, online retail sales of physical goods are projected to reach $600 billion by the end 2024, underlining the meaning of ecommerce platforms. The numbers are impressive, but with this pace of growth, new obstacles will be there, and blockchain offers the ideal solution for those problems.
Despite their success, B2C and C2C platforms face some major challenges that come from their dependance on centralized systems and the inclusion of third parties. For example, a typical B2C transaction requires the user’s personal data that includes sensitive financial details. Storing this data on a centralized server exposes their personal information to higher risks of hacking and data breaches, which is a common issue nowadays. Different kinds of issues such as delayed payments and lack of transaction’s transparency and cross border payments regulations are slowly being overcome thanks to the integration of blockchain.
How Blockchain Can Transform B2C and C2C Markets
No matter the industry, blockchain technology’s decentralized nature offers a perfect solution to each problem that B2C and C2C platforms face. Let’s take a look on blockchains superpowers for upgraded B2C and C2C platforms:
Creating a True P2P Network for C2C Transactions
Platforms like eBay and OLX, though facilitating direct consumer-to-consumer interactions, still control users' personal and transactional data. Blockchain can establish a genuine peer-to-peer (P2P) network without the need of a central intermediary that owns participants' personal information. With this technology, consumers can conduct transactions with higher security, without sharing personal data and fearing that their data will be stored without their consent.
Enhancing Transparency and Reducing Costs
Blockchain is based on a secured public ledger which makes sure that every transaction is easily traceable, preventing higher fees or unnecessary costs. Without the interference of intermediaries, issues like frauds and hacking attempts, transaction fees can be led to minimum.
Automating Processes with Smart Contracts
Another benefit of leveraging blockchain technology in B2C and C2C platforms is the potential for smart contracts to revolutionize these transactions. These self-executing contracts with the terms of the agreement directly written into code reduce the risks of errors and can automate and complex business agreements, eliminating the need of third parties. Once the transaction is processed, the data is secured and cannot be altered.
Enabling Cryptocurrency Payments
As digital currencies become more accepted, businesses are actively participating in the embracement of cryptocurrencies as a new method for B2C and C2C payments. Traditional banking payments are being slowly but surely replaced by modern payment solutions, and this shift is caused by the desire for more efficient transaction processes and the need to expand on global markets. The benefits that cryptocurrencies offer are most notable in cross border payments, due to the lower fees, and lower costs found on the best crypto exchanges found on this link https://cryptomaniaks.com/best-crypto-bitcoin-exchanges. However, not all crypto exchanges are available in all regions, and suppliers and buyers just adapt and purchase on the ones available there.
Conclusion
With the rising adoption of blockchain, B2C and C2C businesses are easily overcoming the obstacles that come from traditional payment methods. Securing higher transparency, security and smooth cross border transactions by adopting cryptocurrencies, businesses that incorporate blockchain technology are in a huge advantage in their respective industry. Looking ahead, blockchain will be the pillar of B2C and C2C payments, so have no doubt and give it a go.