- Shielded from a global recession, cryptocurrency has become the ultimate money for E-Commerce.
- The peer-to-peer transaction was the main driver behind Bitcoin.
The complete human civilization revolves around money. After evolving from the barter system, the use of tokens had been going on for a century, where gold and silver were reserve metals, like the world reserve currency now.
As the Cash System became convenient, the physical character made it essential for a mediator to step in.
As the economy grew, a chain of mediators and authorities formed, leading to taxes and loss of money for the parties involved in transactions. The invention of cryptocurrency became the answer. As it was on the world wide web, having no physical existence led to the elimination of a carrier.
But there was a big wall between digital tokens and their use, the factor of ‘double-spending’. With physical money, once you exchange it for goods, you cannot spend the same physical bill again, hence impossible to double spend. But in digital currency, the transaction details have the susceptibility to copy and rebroadcast, the same BTC being spent over and over again.
This inconvenience pushed Satoshi Nakamoto to come up with “Bitcoin”. When Blockchain technology came to light, they envisioned it as a peer-to-peer transaction system. This is one of the reasons Bitcoin influences the financial and E-commerce market at massive.
In short, Blockchain tech stores data in blocks that link with each other through cryptographic hashes.
Each Blockchain contains the address of the previous block and crypts itself with a hash that is unique for each block. It contains all the information about the block.
Crypto payments are isolated systems and are independent of geographical locations, creating a seamless global network.
But the immense technical expertise needed for mining and running the blockchain keeps it away from receiving the status of the central transaction system.
Analysts believe that the upcoming recession might bring in changes.
While a few companies see turmoil growth like Shopify, which grew $ 3.2 billion in total revenue, Statista expects an immense annual decline. At present, more than 10% of web users aged between 17 to 60 own cryptocurrency.
The number of crypto users stands at 320 million, making the audience attractive and fit for organic growth.
Blockchain helps generate new revenue streams for merchants and gives stakeholders different ways to spend money.
With integrated user-friendly solutions, crypto can gain wider adoption and help the e-commerce industry.
Crypto transactions can become good weaponry for the upcoming recession by having a secure infrastructure, lower transaction costs, and an influential target audience.
In the coming years, the E-Commerce platform might find an untapped market in the ecosystem of Crypto.