It won’t be wrong to claim that technology is the most dynamic thing, and because of it, we are witnessing some significant transformations. One such change is the use of Blockchain in the retail business. The blockchain is a new concept which is just a few years old, but, it has managed to influence the operation of all the industries. Retail industry’ dynamism is unhidden. With the growing demand for customer and the mode of transaction shifting to the online medium, there is a dire need for the companies to come up with system and protocols which can ensure complete safety.
We all know that Blockchain offers a shared ledger where all financial transaction gets recorded which is visible to both the parties. Despite the flurry of coverage around the implication of Blockchain for the commercial industry, it’s not a one-trick pony.
Despite the flurry of coverage around its implications for the financial industry, Blockchain is not a one-trick pony. Its applications in the different sector make it have a multitude of benefits. When it comes to retail business, then companies look for provisions which can help in enhancing customer’s trust in the brand. Blockchain in the retail industry is one such aspect. Here we will discuss,
- How can Blockchain benefit retail sector?
- What are its different implications?
Blockchain in retail business- A force to reckon
The blockchain is a debatable topic. Many people still question its application as a part of the mainstream business operation; its propagators strongly feel that it is the next big thing.
Blockchain in local industry has different uses, although, we are using some of the best technologies, there is always a scope for improvement. When it comes to retail business, then it’s all about alluring the customer. The best way to achieve this is to enhance in the following categories:
- Transparency– Transparency is the key to success, and when it comes to Blockchain which enables a peer-to-peer transaction, even the smallest change gets registered in the ledger. Both the parties can view this ledger and thus, there is the minimal probability of cheating. Apart from this, the customer can get to know about the origin of the product, their date of manufacturing and every minute detail which would affect their buying and consumption decision. For example, Provenance is a platform which helps the brand to provide the particulars of origin and history of the product. The blockchain is the underpinning of this. It allows the parties, i.e., the seller, manufacturer and consumer to trace the product journey.
- B2B payments – Cryptocurrencies are slowly becoming popular. But the biggest challenge that it holds is its acceptance as a real cash. For this to happen, banks must be willing to keep cryptocurrencies as a deposit for hard cash. 28 banks are now working on how they can use cryptocurrencies for cross-border transactions which will facilitate more business.
- Smart Contracts- Apart from banking, Blockchain is more popular regarding the smart contract.These are automated private Blockchains. This ensures that all the actions from any end, seller, supplier or manufacturer gets recorded. Thus, most of the retail businesses are opting for it, this provides clarity and maintains trust between the parties. Moreover, there are lesser chances of fraud and cheating. This means a reduction in paperwork, reliance on the digital exchange of information and seamless cross-border transaction. It also reduces the chance of losing any data.
The wave has not yet rested
Well, the Blockchain technology in the retail industry is still at a very nascent stage. Although Blockchain is popular for commercial works, it holds promising transformations in various business, retail being one of them. This technology brings in digital consensus, accurate record to the company ensuring better trust and transparency.