The Effect of Blockchain Tech in Online BuyingOctober 24, 2018
The advent of online marketplaces has transformed the way individuals trade endlessly. There, by trading, people mean not just purchasing and selling items. There are also peer-to-peer platforms both for services and goods where they can find virtually anything. Further, online marketplaces brought trade to a worldwide level, decreasing distance and time to nothing.
Today, the trade sector is experiencing another huge disruption, and this time, it’s caused by the blockchain. It has discovered its way into a plethora of sectors, and trade is no exception to that. And it appears that people are now noticing another excellent revolution in the commerce space which is going to move conventional e-commerce platforms away.
Introducing the Blockchain Marketplace
The focal point of the blockchain marketplace is its decentralized structure. To make it simple, a blockchain technology e-commerce platform has no third party or intermediary. It’s run and operated by its users without any central platform.
The benefits of decentralization are quite gigantic, and these include:
- Faster Transactions
Since every transaction is made within the network, there’s no need to confirm them with intermediary institutions that may have systematic working hours. You see: blockchain works 365 days a year and is accessible from any region of the globe and any time zone.
- Fewer Transaction Costs
This benefit is directly connected to the absence of the intermediary in blockchain system as well to their distributed database needing substantially less maintenance.
Since the insufficient central entity owning and keeping the platform, there’s no need for policies and rules certain for this specific marketplace. Simultaneously, since blockchain technology is an open source tech, many users are tracking the data. Thus it’s hard to meddle with it. That boosts the security of the entire system, as users make sure it themselves.
- Distributed database rather than a common database
Any platform must have a database keeping all information connected to the platform operation as well as to every transaction done on its basis. Did you know that a common database needs continuous adoption and maintenance of strict security measures? Certainly, this results in higher expenses which are covered eventually by higher participation costs.
How Does the Blockchain Marketplace Works?
The blockchain marketplaces, a seller, unswervingly links to the buyers, and their transaction is done with no third party serving as an intermediary. It might appear which buyers and sellers communicate similarly on both conventional and blockchain platforms – seller publishes their items and purchasers make the buy.
On the other hand, XinFin wishes to make an organizational marketplace in the Ethereum blockchain with the goal to fix real world issues of the financial sector. They wish to do this incorporating the use of smart contracts among the financers, sellers, and buyers, providing settlements and payments utilizing their native token – XDC.
It appears that blockchain marketplaces are progressively attracting users because of their transparency, security, and cost-efficacy. Today, we are seeing blockchain platforms being made, ICOs working, new cryptocurrencies developing.