The Blockchain’s Effect on Retail

Security

  • Blockchain allows consumers to review all of the information about a specific product that has been collected throughout its history and is available in a shared, secure, and immutable database in real-time. This data includes a variety of product details, such as raw material info and attributes related to manufacturing, logistics, and sales. Customers can thus track and verify the authenticity of a product while also learning about the entire value chain. Before purchasing a product, for instance, people can check its authenticity and ensure that it was produced using sustainable methods.
  • Retailers can now rely on a more comprehensive database that has been built through the many interactions people have had with each other retailer over the course of its history. As a result, retailers have more decision-making power when they rely on a secure and extensive database of precise people’s past transactions. This enables more precise financing lines or extended credit plans with lower default risks.
  • Have you ever had the impression that online testimonials for a particular product or merchant were false? If so, your intuition was probably correct — bots are now commonly used to create fake reviews on online stores. Fortunately, blockchain technology ensures that each customer has only one verification ID, allowing the authenticity of online reviews to be verified and lowering the risk of shopping at fraudulent or cybercrime sites

SCM (Supply Chain Management)

  • Blockchain can be a valuable asset in supply chain management practices: With this technology, all parties in the supply chain can communicate more quickly and efficiently. Retailers can make decisions based on data shared with other buyers, suppliers, and middlemen by using a decentralized database that updates itself in live time. This ensures that sales and price forecasts are much more accurate. Finally, smart contracts can be used by retailers to automatically place orders or offer discounts based on current inventory levels or demand forecasts.

Payments

  • Trading on a blockchain network enables faster, cheaper, and more secure commercial transactions, particularly for cross-border purchases. With this in mind, cryptocurrencies designed for commercial transactions, such as Dash or XRP, are expected to gain traction as the number of retail applications grows.

Marketing

  • Loyalty programs are one of the most important blockchain applications in marketing. Existing programs are often the target of fraud, resulting in losses for some companies. However, loyalty campaigns launched with Blockchain ensure that the campaign’s targets are verified users rather than internet robots, resulting in greater marketing performance. Furthermore, associate merchants can use Blockchain to launch collaborative promotional activities and enable their customers to redeem their benefits across multiple channels. Finally, brands can send digital rewards such as exclusive NFTs using this same data structure.
  • Because all campaign data is hosted on a single server, social media managers often question the legitimacy of digital ads. As a result, it’s impossible to know whether a campaign’s impact metrics are real or faked by the advertising channel. Ads on decentralized platforms, on the other hand, increase the transparency of ROI on digital advertising by providing deeper insights into how verified users interact with ad campaigns.

Sailing over the horizon…

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Pedro Cecilio

Pedro Cecilio

The future of business, startups, VC, tech trends & much more.