Enhancing E-commerce Business Operations | Blockchain | Edgistify

“Once I got into blockchain, I realized that we may finally have the tools to change the game”

-             KJ Erickson, Public Market CEO

Blockchain has been creating a buzz in the financial industry for quite some time. But with time, many new industry sectors have started implementing blockchain in their business operations with e-commerce being the most lucrative one. The e-commerce industry has changed the way customers shop & blockchain is now set to disrupt the way the e-commerce industry works by establishing a decentralized economy.

With this article, Edgistify aims to shed light on the basics of blockchain & its role in enhancing e-commerce business operations.

What Is Blockchain?

Blockchain is a type of database. What makes it different from the other typical databases is the way in which it stores information. Blockchain stores information in the form of groups also known as blocks. These blocks have a certain storage capacity. Once a particular block is completely filled with information, it is linked back to the previous block thus forming a chain of data called blockchain. Post this, any new information is then added to the next block.

What makes blockchain so popular is the feature that it offers. It is a technology that ensures security, transparency & decentralization of data. In other words, it is like a distributed ledger that is open to everyone. Once any information is entered into the blockchain, it is impossible to alter the data. To verify the authenticity of the transaction, each of them is guarded by a digital signature.

How Blockchain Works?

As mentioned above, each block of the blockchain is filled with data & each block also contains the hash of the previous block. Hash refers to a numerical code that is unique to a specific block. When any data inside a particular block is altered, this hash also changes, hence this hash performs the role of strengthening the security of the blockchain. If at any time, hackers try to alter the data within the blockchain, this hash also undergoes alterations making it impossible for them to steal the data as this hash has to be correct to make successful transactions. The detailed blockchain process is mentioned below:

1) Digital signature is created using public & private key to ensure safety

2) Partakers are then allowed to perform numerical verifications to agree on a specific value

3) Sender then uses a private key to indicate that he/she has made the transaction

4) Post usage of a private key, a block consisting of timestamp, digital signature & public key for the receiver gets generated

5) Now, the Validation process starts as the details of the block are broadcasted through the network

6) Miners then solve a numerical puzzle for processing the transactions

7) A miner who solves the puzzle gets rewarded with bitcoins

8) When most of the blockchain nodes comply, the block is time-stamped & chained to the existing blockchain

9) This block can now accommodate any information

10) Copy of this block is then updated across all the nodes of the network

What Is E-commerce Blockchain?

The use of blockchain in e-commerce processes is referred to as e-commerce blockchain. Any e-commerce business makes use of lots of data like consumer information, inventory data, transactional data & so on. Hence, in such industries, data security plays a vital role.

With e-commerce blockchain, businesses can ensure high-level data security as this technology ensures that the data is stored into blocks that are further chained to other blocks in the blockchain thus making it hard for anyone to alter the data.

How Blockchain Can Help Enhance Business Operations?

Implementing blockchain into e-commerce operations can help businesses enhance their processes in varied ways. The majority of the logistics operations like inventory management, recordkeeping, etc. can be easily carried out with blockchain technologies.

Below are some of the ways in which blockchain might be beneficial for e-commerce businesses:

1) Cost-Effective Process

Blockchain ensures decentralization. This implies that the data cannot be controlled by any central authority but is limited to the buyer & the seller. Since, there is zero involvement from a third-party, with this technology, businesses can enjoy zero transaction fees while consumers can enjoy lesser prices, thus creating a win-win situation.

2) Managing Inventory

Blockchain helps e-commerce businesses manage their inventory with ease. All the information related to the inventory are digitally stored. This helps in easy administration of the stock thus ensuring that businesses don’t have to spend a huge amount for hiring human resources for managing the inventory.

3) Provenance Tracking

This type of tracking refers to identifying the source from where each data came from. In e-commerce businesses that make use of blockchain technology, this type of tracking becomes a cakewalk via RFID tags & embedded sensors. Additionally, blockchain also helps in determining any oddity in any logistics operation.

4) Data Security

Majority of the e-commerce businesses make use of centralised data storage or cloud storage for storing any information related to their business. But storing the data in this manner makes it highly susceptible to theft. As mentioned earlier, blockchain makes use of a decentralised system thus making it impossible for anyone to hack into the blockchain network & alter the data.              

How Edgistify’s Blockchain-Backed Logistics Solutions Help Businesses?

Being India’s largest e-commerce fulfillment platform, Edgistify understands the importance of blockchain in e-commerce operations & has been implementing the same to provide a one-of-a-kind logistics procurement support platform. Right from warehouse procurement to deciding the right service providers across all domains, Edgistify is a one-stop destination to fulfill all supply chain needs of your business. Our warehousing network is spread across 150+ cities in India enabling us to help clients deliver their products at lightning speed and that too in the most cost-effective way. Visit Edgistify to know more about how our blockchain-backed logistics solutions can help your e-commerce business.