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How will dApp development influence the future of eCommerce?

With blockchain technology, application development has brought a completely new level of change in the finance sector. To our surprise, cryptocurrency stole all the limelight for using blockchain technology in its early days. But apart from cryptocurrency, blockchain offers much more in different sectors, including eCommerce. 

As reported by ResearchAndMarkets, the blockchain market in the eCommerce sector is estimated to grow at a CAGR of 81% by 2023. The growth of blockchain in the eCommerce industry can be attributed to its various advantages, like transparency, traceability, security, and immutability. Businesses are trying to move away from traditional eCommerce platforms and looking for something more secure and efficient.

As retail businesses are looking for alternatives to traditional eCommerce platforms, dApp development will play a pivotal role in the future of eCommerce. Let’s take a look at how dApp development will influence the future of eCommerce.

1. Improved data security

With eCommerce businesses collecting a large amount of data from their customers, the need for improved data security is paramount. Data breaches have become quite common, and they cost businesses a fortune. Also, customers are losing their trust in eCommerce businesses as their data is not safe. 

With dApp development, the data is stored on a decentralized network, making it immutable and safe from hacks. If by any chance, hackers try to alter the data, it will be visible to everyone on the network, and this will make it easy to track them down. As the attack would require hackers to have more than 50% control of the network, which turns out to be a bit tedious task. So, partnering with a company that offers dApp development services is always recommended to take your business to the next level.

This will make dApp development a go-to option for businesses looking to improve their data security. As reported in Crypto51, renting enough mining power to attack Bitcoin would currently cost approximately $716,289 per hour, followed by $46,692 for Litecoin and a further $16,180 for Ethereum classic.

2. Reduced costs

One of the main reasons why businesses are looking for alternatives to traditional eCommerce platforms is the high processing fees. With dApp development, no middlemen will be involved, and the transactions will be peer-to-peer. 

This will help reduce costs significantly as there are no fees for the middlemen. Also, as the transactions are transparent, businesses will be able to save on expenses related to fraud. An eCommerce app development company can help build dApps to solve your business needs.

3. Faster transactions

Undoubtedly, blockchain can help make faster transactions by immediately moving the payment made by customers to the vendors. It can handle 10,000 transactions per second. By leveraging the power of blockchain, dApps can change the future of the eCommerce industry. 

As reported by PYMNTS, 37% of businesses currently use blockchain and cryptocurrencies for cross-border transactions; however, 13% said that they would like to make transactions by crypto. This number is likely to increase in the future as businesses realize the potential of blockchain.

4. Greater transparency

As more businesses have shifted online, the need for transparency has also increased. Nowadays, customers have become more diligent and want to know the current status of the products or transactions they have made from their accounts. 

dApp development can help eCommerce businesses provide a higher level of transparency as all the transactions are stored in a distributed ledger that cannot be erased. Also, any wrongdoing on the merchant’s part can be monitored easily. This will give customers clear visibility into each step, allowing them to track the progress easily and instantly.

5. Elimination of fake reviews

According to a report by the spiegel research center, the probability of a customer purchasing a product with just five reviews is 270% greater than that product with no reviews. As many people tend to buy products after reading lots of reviews. These may be genuine or, many times may turn out to be fake. This may also harm the brand’s reputation. According to a study by Harvard Business School, 20% of Yelp’s reviews are fake. This turns out to be a real threat to businesses that need the right solution.

So, blockchain-powered dApps can help verify and eliminate fake reviews as these are stored in different blocks, and each block has a unique identity. This will help eCommerce businesses succeed in the marketplace. Amazon uses verified digital IDs with blockchain to validate fake reviews and take action accordingly.

Closing thoughts

Undoubtedly, dApps have the potential to revolutionize the eCommerce industry and take it to new heights. They can help businesses reduce costs, improve customer experience, eliminate fraudulent activities, validate fake reviews, and more. With the increased adoption of blockchain, dApps are expected to gain more popularity in the coming years.

Jaxson henry
Jaxson henry
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