Five Ways Blockchain Will Rewire India’s Retail and E-Commerce Sector

Blockchain, like NFTs or the Metaverse, is a digital innovation we’ve all heard of but struggle to grasp or can immediately identify with.

While blockchain may not be as fresh as NFTs and the Metaverse anymore, it is poised to have a big impact across India in the near term – serving as a “transactional backbone” for its blockchain industry. booming e-commerce and retail industry rebound.

What is Blockchain?

Blockchain is a secure way to record information that cannot be altered or hacked, providing an irrefutable data platform. In concrete terms, it is a digital record of transactions that can be duplicated and shared securely between computer systems. The ledger is a “chain” made up of individual “blocks” of data – hence the blockchain – and each time a new transaction occurs on the blockchain, a record of that transaction is added to each ledger, making it makes it transparent, open and accessible. .

India joins the Blockchain Party

As blockchain supports the transaction of cryptocurrencies like Bitcoin or Ethereum today, various companies are harnessing its ability to improve customer relationships, supply chain traceability, efficiency, and cost savings. costs, and here in India, many organizations are rapidly joining the blockchain party.

Local banks are embracing the technology, while 56% of businesses are preparing to make it a core part of their operations. Government agencies are also testing blockchain-based projects, and students across India are studying blockchain in large numbers – all stemming from the government’s initiative with the National Blockchain Framework (NBF).

Blockchain’s mainstream migration will accelerate as it expands its influence and impact in the retail and e-commerce sectors and here are five ways it will make a difference:

Powering and connecting e-commerce and payments – Blockchain is already making its presence felt in the e-commerce sector in India, which is expected to grow by a staggering 21.5% in 2022. Blockchain is an e-commerce accelerator as it provides a secure method of storing and sharing data. payment information. Its distributed ledger technology enables retail businesses to collaborate closely, easily and seamlessly with all supply chain partners, including distributors, retailers, importers, and more. Instead of each player maintaining a database, the blockchain provides a unified payment and transaction platform for all participants.

Improve supply chain transparency – Blockchain technology – which offers transparency, real-time data, and shared ledgers – puts all transaction stakeholders on the same page.

Physical assets, for example, can be digitized to allow retailers to track their inventory and customers to monitor their orders at any stage and anywhere in supply chains or sales channels.

A high level of visibility builds confidence and peace of mind for all parties, and this was much needed during our times of lockdown when retailers struggled to keep stores open, maintain stock levels and maintain moving supply chains and employee safety.

Removal of third parties – The benefits of blockchain also extend to end users. Its distributed ledger is a shared database that is synchronized across multiple sites and accessed by multiple people, reducing transaction costs by eliminating the need for third-party organizations to manage data.

Bypassing third parties, who use centralized databases, also reduces the risk of fraud and data theft.

Blockchain improves security and privacy because all transactions are independently processed and verified and cannot be changed or deleted. It also enables faster transactions, with 24/7 processing reducing transaction times.

Protection of customer data – While loyalty programs have yet to be fully embraced by Indian consumers, blockchain can help attract more customers to sign up for campaigns. To mitigate data security concerns, blockchain protects customer data by allowing them to exchange tokens for rewards without compromising security.

Improved loyalty programs – Blockchain also provides the ability for various brands to work together by creating a consolidated loyalty network, allowing customers to accumulate loyalty rewards in a single “wallet” and redeem them with partner companies.

Partner companies can collaborate via blockchain to enable exchanges with customers without centralized management – ​​for example, deploying smart contracts to manage terms, automate processes and reduce organizational costs.

The benefits offered by loyalty programs can also be extended through blockchain’s ability to run rewards programs like a cash back program – where currency is stored in a digital wallet and can be redeemed at any time.

No turning back

Blockchain is here to stay – its ability to change the way information is stored, shared and owned will transform and propel the retail and e-commerce sectors in India for years to come. Consumers, retailers, suppliers and other business partners will benefit from increased speed and reduced costs while enjoying the security and peace of mind to earn the trust of all stakeholders.

For tech entrepreneurs and digitally-minded companies, trust is the most important success factor, and blockchain – which doubles as transparency, security and openness – is today’s “gold standard”. The prospect of a blockchain-powered future is bright in India’s e-commerce and retail landscapes and it will be exciting to witness the new steps and innovations that will inevitably emerge as a result.