Before exploring how blockchain has simplified online commerce, we need to define the blockchain system, its history, and how it works.
Before knowing how blockchain has simplified online commerce, should we define the blockchain system, its history and how it works? A blockchain is a system through which trading bitcoins and other cryptocurrencies is possible with a linked peer-to-peer system. There is no central authority over the system.
The people run the system instead of a central institution or government. It is based on peer-to-peer or person-to-person transactions. There is no need for a third party, middleman or government to insure the transaction. It is also not necessary to find the personalities of the seller and the buyer. They can sell and buy products online without knowing or seeing each other.
Blockchain uses cryptocurrencies for trading. They are digital assets using cryptography for verification and records instead of centralized government or institutions. Cryptocurrencies have no intrinsic value like other physical commodities i.e. gold or silver. They are simply virtual or digital assets that can be bought or sold anywhere.
The history of blockchain
The blockchain history is not that much older than any monetary system. It all started with an article published in 2008 entitled “Bitcoin: A Peer to Peer Electronic Cash System”. The article was written by a pseudonymous man, organization or institution (no one knows) named Satoshi Nakamoto. From then on, it was quickly adopted, first by renowned personalities and then by recognized institutions. Since then, he has never looked back.
How Blockchain Simplified the World of Online Commerce?
Blockchain has simplified commerce and transactions on many levels. The most important part of this blockchain system is that it is safe from any hacks or fake entries. Moreover, it does not require any central authority with the help of which the trade is carried out. In addition, this blockchain is protected by a complex and robust algorithm.
Here are some of the ways blockchain has simplified the world of online commerce.
Trade without third parties
In a traditional way of trading, you would need a third person to trade. This third party can be a governmental or private institution, or a bank. Whereas on the other hand, in blockchain technology, you don’t need such type of third party for trading. A person sitting in Japan can buy or sell part of bitcoin or any other cryptocurrency to a person in America without any middleman being involved.
So it becomes effortless when you trade with a person without any instructions from an intermediary. You would buy and sell as you wish. Additionally, the traditional way of trading is susceptible to being hacked or scrubbed. You would have no choice but to rely on the support of the bank to restore your information or your money.
On the other hand, if your account is hacked into cryptocurrencies, all the assets cannot be withdrawn from you; there would still be some currency left in the blockchain because it is designed that way.
No need to reveal identities
In a traditional way of trading, you have to give the names of both trading parties. So when there is a problem in the future, they can be traced. But in cryptocurrency trading, you don’t need to show your identity to anyone. You can buy or sell cryptocurrencies using a blockchain system while being anonymous. You just need to give your wallet address to the second party involved in the trade.
But if it appears necessary to reveal the identity for any reason, the blockchain has this unique characteristic that can be traced back to the person. Thus, the concept of stealing or rubbing disappears in the blockchain system, thus providing the best way to trade online without any fear.
In the late 2000s, very few people were using blockchain systems for commerce, and no country had legalized it. But in 12 years, it has been used by more than 300 million people, 1800 companies and more than 100 countries use central bank digital currencies.
Different countries have made their exchanges for trading cryptocurrencies. Indian traders have WazirX, Americans have Coinbase, Singapore traders have Binance and a new platform Bitcoin Loophole also allows e-commerce.
With the simplicity of the blockchain system in e-commerce and its security, many institutions and countries are rapidly adopting it.
Disclaimer: The information contained herein is provided without regard to your personal circumstances and should therefore not be construed as financial advice, investment recommendations or an offer or solicitation for trading in crypto- currencies.