Online shopping has drastically changed the traditional way of doing shopping. The advent of blockchain technology is now all set to improve online shopping efficiency for retailers and online shopping experience for customers. The retailers will have access to decentralized information related to their suppliers and distributors over the network. Whereas the customers will have more power over their purchases. Here is how the blockchain can improve online shopping.
- Supply Chain Management: A supply chain is a system which consists of organizations, people, activities, information, and resources created to deliver products or services from suppliers to end-users. The blockchain is used to manage the supply chain.
- Inventory Management: An inventory is a collection of shopping materials. The blockchain is used to manage the inventory.
- Transparency: Transparency is a mechanism used to provide openness to the entire supply chain and inventory. Minimizing disputes & delays, preventing goods from getting stuck in the supply chain, eliminating errors & fraud and improving inventory management are all possible through transparency.
- Traceability: Traceability is the capability to track the history and location of items. Customers can track the items through a QR code. They just have to scan the QR code on their smartphone.
- Accepting Crypto Payments: Many shopping platforms accept cryptocurrency. If you hold cryptocurrency, then you will not have to convert your fiat currency and be charged with conversion fees.
- Customer ID Authentication: Every customer will use a unique key-pair ( a public key and a private key) to register their identity in the blockchain technology. The public key is used to encrypt messages and the corresponding private key is used to decrypt them. Several identity-related attributes like name, unique identification number or social security number, fingerprint and other biometric information.
- Proof-of-Ownership (PoO): Ownership means the right to being an owner. The blockchain has the potential to prove the ownership of digital assets through its immutable distributed ledger technology.
- Future Records: The blockchain keeps a record of transactions permanently.
- Tamper-proof Solutions: Tamper-proof solutions mean the solutions which can’t be altered. The blockchain provides the solutions to all phases like product production, distribution, logistics, sale and use of the supply chain.
The Southeast Asian online luxury marketplace and platform Reebonz has collaborated with the blockchain technology company VeChain for developing end-to-end tracking and authentication solutions for luxury goods. Both companies have signed a Memorandum of Understanding (MOU). They actually want to develop a “digital tag” for the development of an upstream and downstream supply chain assurance. The assurance will be used to allow product traceability, supply chain planning, product management, and proof of ownership. The expertise of VeChain will be used for providing tamper-proof solutions to Reebonz. VeChainThor will record and store that data which is unique to every product sold.