The convenience and fees associated with cryptocurrency platforms are lower than those of corporate counterparts. This is a huge advantage for entrepreneurs. Are you convinced that blockchain will settle every transaction in e-commerce within five years? No?
Web3 is certain to revolutionize e-commerce. Accepting cryptocurrency payments in ecommerce stores will soon be as common as accepting PayPal and Klarna as well as Visa, Mastercard, MasterCard, and Visa. Stores that do not adapt their E-commerce platforms so they accept cryptocurrency payments will soon be out of business.
Web3’s converging forces — blockchain, decentralized financing ( DeFi), machine learning, AI, and machine learning — have created new smart algorithms that can adapt and analyze data to deliver user-centric experiences. Web3 will also be more inclusive than the previous Web versions. Web3’s decentralized nature makes it an ideal platform for fast, transparent information flow that isn’t subject to central authority censorship.
Web 3 completely changed e-commerce
Web3 also eliminates intermediaries such as Facebook, who take a cut of users’ cash and personal data when they purchase something online. All details of transactions are made public, for better and worse. Online transactions can be made more secure and convenient by using crypto payments.
Related: Latin America is ready to embrace crypto — Just integrate with their payment systems
Many merchants and consumers are now using crypto payment solutions as more businesses shift from Web2 to Web3.
Web2 is home to most online payment platforms like PayPal or Stripe that charge transaction fees around 4%. Businesses are unable to remain competitive if they raise their prices due to this. Crypto payments are not only frictionless but also gain popularity as a payment option. Stablecoins are a great alternative to traditional fiat currency and the hassle of withdrawing money to your bank account.
Blockchain technology can be used with new and old business models
Similar to Web2’s adoption of e-commerce, Web3 still has a long way ahead before it can offer the full benefits described earlier. The landscape of value exchange has been drastically altered by the introduction of smart contracts, Web3 platforms like Hyperledger. Enterprises like IBM developed Hyperledger fabric for specific business cases to optimize supply chain operations. Fabric gives businesses access to the unchangeable ledger data which allows them to verify accountability and reduce the risk of counterfeiting.
The consumer can track the status of their orders and trace every item back to its source. Supply chain managers can also monitor inventory levels and track shipments to identify fraud and take the appropriate actions to fix them. This allows both the consumer and company to know when they can expect delivery. The blockchain explorer allows you to track all packages and protects your privacy.
With blockchain, it is possible to create and own a global Whitelist of reliable or genuine customers and vendors. This is something Unstoppable Domains does with its identity verification service for Web3. This whitelist helps to detect fraud and reduce false positives. Web3 is a more efficient way to order online than traditional e-commerce. Web3 eliminates intermediaries and chargebacks.
Web3 brings new regulations
Web3 will revolutionize e-commerce compliance, changing the General Data Protection Regulation of the European Union. This raises important questions about identity authentication, without disclosing sensitive or personal information.
Web3 developers already use zero-knowledge proofs to show the other party they have certain information (such a nationality or age over the limit), without actually disclosing the details.
Clients will not have to decide what personal data they want to share. This is possible only if the relevant technology is adopted by companies and it’s allowed by regulators. But, this may not occur unless someone is prepared to argue in favor.
Related: PayPal allows digital currency transfers to external wallets
There are so many possibilities that businesses have to consider joining the Web3 train. They can improve their transparency, reputation and cost management in e-commerce to stay ahead of others while also moving digital data safely across borders. Clear regulations are needed to encourage the wider adoption of blockchain technology.
In the world of Web3, companies would have an important role: making sure they have the most up-to-date security solutions to avoid becoming cybercriminals’ targets. Recent cyber crimes include hackers stealing funds and personal information from customers. This can lead to reputational damage for the company.
Without a sufficient staff of information security professionals, the best tools and systems won’t mean much without key system vulnerabilities being addressed promptly and key controls being tested regularly. Web3 companies would need to dedicate sufficient resources and attention to address these areas of potential risk during their business.