Why Should You Consider Implementing Blockchain Technology in Your Marketplace?
Nov 26, 2017 Posted / 2996 Views
Speculations and Deliberations are one of the key elements involved in the process of rationality. Any technology which is leveraged by any sector depends upon its practical applicability. It is necessary for any entrepreneur to evaluate and analyze the long-time effect of any new mechanism. Once the validity of it is proven, successful utilization by few will allure others into mass adoption.
This is exactly what is happening with the usage of Blockchain technology. Various industries like Banking, supply chain & logistics, insurances etc are propagating the deployment of better and productive output. Undoubtedly, during the initial years of origin Blockchain technology faced huge uncertainty and reservations, but as time has passed people around the globe are reckoning it's merited and developing the deeper understanding.
The question now is why should you consider implementing Blockchain technology in your marketplace?
If the dealings are completed on the Blockchain, this will specifically create “A Blockchain marketplace”, which is way more advantageous than the traditional marketplace. Read the following points for better understanding:
The Network Structure: Blockchain uses the open network model, which means that the data on the network is decentralized, democratic and distributed. Unlike the conventional marketplaces which are regulated by mediators and third parties. Moreover, the platform is supported by the users, which are also called nodes. These nodes are continuously advancing their computing resources to the network and are available 24/7. So no need to worry about banking holidays and processing times.
The ease of payment: When you are using traditional methods, you may have a hard time processing your debit or credit cards. Moreover, in international transactions these can take long hours or sometimes days to process your money. Blockchain backed systems are almost immediate. You make direct payments using cryptocurrency like Bitcoin, Ether etc.
Fee processing: With every payment made through your credit card or debit card some percentage of a fee is charged. It can differ in your type of marketplace. Like e-commerce platform can charge up to 3.5% to 20%. But a Blockchain marketplace levies a very small amount of fee (0.0001BTC) or sometimes there is no processing fee at all.
Transparency and Trust: Blockchain technology works on the peer-to-peer network, which enforces the records to be stored permanently in the block. A blockchain marketplace will facilitate users to sell goods and services transparently. It also has an additional advantage of getting instantaneous feedback which is lacking in the conventional marketplace. Traditional sellers sometimes distort the records and hide selling metrics. These lead to frauds and scams.
Security: One of the most influencing points that give Blockchain technology the leading edge is Immutability. The data is publically displayed and cannot be deleted or altered without authentication by the other network users. This helps immensely in avoiding any kind of fraud. The traditional platforms are easily corrupted and the personal information can be stolen at any point in time.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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