Ecommerce and Cryptocurrency: How viable it is in coming years?
Hey, I’m here to unfold one of the popular topics on the internet — crypto and eCommerce. This is an attempt to convince you in the next few minutes of reading that cryptocurrencies will do amazing things for eCommerce.
I’ll explain how cryptocurrencies enable the whole new eCommerce markets with robust eCommerce solutions or an advanced multi-vendor marketplace extension that otherwise would never have existed and second. Furthermore, I’ll tell you why cryptocurrencies are dramatically better than the technology that we’re currently using credit cards. So on point number one, crypto enables new markets, and to explain this, I’m going to use one of my favorite crypto projects, open Bazaar.
Ecommerce with Cryptocurrency: Best examples to take down
Open Bazaar is an open-source project that creates a peer-to-peer marketplace. The joke is that open Bazaar is what you would get if I Bay and BitTorrent atta baby, so open Bazaar is an eBay only as a peer-to-peer protocol rather than as a company now.
When I’m rambling on to friends about how unique open Bazaar is, I often hear I have an Amazon Prime account. What do I need that for and yeah, Amazon Prime is fantastic, but you see, crypto markets like open Bazaar aren’t about the eCommerce currently happening? They’re about the eCommerce that otherwise never would have it, for example.
Let’s suppose that you enjoy collecting artwork from around the world, so you’re looking for a new piece of art on the interwebs, and you find a fantastic piece of art made by an artist who lives in a village outside Port Moresby in Papua New Guinea. It’s offered for sale by a small businessman based out of Port Moresby, and he has a website that says, hey, just send me a money wire, and I’ll ship you this fantastic piece of art from the village down the road to me.
Now, do you think you’re going to do that? Probably not, and that’s because you have no recourse if something goes wrong. What if the artwork never arrives, or if instead of a 4-foot wood carving, you get a 1-foot plastic figurine? Who do you call? Are you going to fly to pop on your Guinea and take the guy to small claims court? Probably not, and for this reason.
There are millions, maybe billions of people on the planet who we don’t do business with because we don’t share any third-party intermediaries with them. You see, when you buy something on eBay, you’re interacting with a stranger. But if something goes wrong, eBay will help you sort it out.
You see, we always have these big third-party intermediaries in our transactions, whether that’s eBay or your credit card company or PayPal, etc., but crypto projects like open Bazaar change this to the open because our platform has distributed resolution systems built into it.
Open Bazaar is what they call moderators who act as intermediaries, but this isn’t one prominent intermediary. It’s an entire market for intermediaries. I like to think of an open Bazaar. It’s creating a kind of global distributed small claims courts, so how does this work with multi-sig transactions. You see, you can think of cryptocurrency as programmable money. You can do things with it that you just could never do with regular cash.
And what this multi-sig functionality enables is for two parties to place funds into a kind of escrow where if there is a dispute, the moderator can step in and make a decision so cryptocurrency or programmable money enables features like multi-sig, which allows escrow in dispute resolution services which will enable you to transact with people that you maybe never would have considered as possible business partners and this is just one of the ways that crypto can allow new markets but if you’re not yet convinced by the incredible things that crypto can do.
Then let’s look at it from another angle, and I’ll explain to you why our current ecommerce payment technology credit cards. Well, I’ll be nice. I’ll just say that credit cards are a bit outdated. You see, credit cards are a 50-year-old technology that was built for in-person transactions. Credit cards are pulled rather than push and what that means is that once someone has your credit card info, they can pull funds out of your account.
Whenever they like well, crypto is much more like cash. It’s a push system, so unless you’re being mugged, no one can pull some money out of the wallet you need to hand it over, and you don’t have to hand over control of all your funds to make a payment with crypto the data that you give a merchant to pay them in.
No way enables them to pull further funds from your account, and this has significant implications. There’s this thing called PCI DSS or payment card industry data security standards you see when a merchant accepts credit cards. You wind up with a database full of credit card info that hackers would love to get their hands on. You have to put quite a lot of effort into protecting that data.
Hence, data generally creates such a prize for hackers that it’s only a matter of time before there will be a significant data theft in 2017, nearly 16 billion US Dollars are lost to online identity theft and credit card fraud in the US alone; that’s a big problem.
Now crypto isn’t perfect. It comes with its brand of concerns, but if we were all using crypto instead of credit cards, well, things like PCI compliance credit card fraud, the massive merchant server hacks, all of that would go away. So are you convinced now?
If not, I have two more quick points you see cryptocurrencies are global? You can use them anywhere in the world, so it’s great for international commerce. You don’t have to deal with wire transfer fees and exchange rate fees; cryptocurrencies are also permissionless in censorship resistance?
So if you have a business that’s not politically popular, like a marijuana dispensary, you might find yourself unable to get a bank account, but you can still use crypto. Because the political approval of a banking CEO is not required to use crypto, crypto is pretty awesome for eCommerce; right, well, I hope I’ve convinced you about eCommerce with crypto.
If you’re sure about starting an eCommerce website or marketplace platform that support cryptocurrency, don’t be your mind wavering.