It’s undeniable that many businesses have embraced blockchain. This tech trend is reshaping online transactions, with brands like Microsoft and Tesla already accepting cryptos. The gaming industry has also become a hotbed of blockchain-based games as crypto casinos become more popular. You can even play casino games at online roulette sites and withdraw winnings in cryptos. As we approach 2025, we want to look at several ways this technology will revolutionise the digital commerce sector. Maybe it’s time to overhaul your payment system and do things differently.
What is Blockchain Technology?
Blockchain is basically an advanced database where transactions are recorded and stored in a decentralised public ledger. This database links to several computer networks with a unique ledger copy. Transactions are added to the blockchain network as new “blocks” that no one can manipulate or edit.
5 Ways Reshaping the E-Commerce Sector
Below are several ways blockchain and cryptocurrencies, in particular, are changing the digital commerce landscape:
Smoother Cross-Border Transactions
We all know the complications that often come with international payments. For example, finding an online business that accepts local payment methods and currencies can be challenging for customers. Conversely, most companies only process offshore payments in bank transfers and payment cards. These options often attract hefty fees for both parties involved in the transaction.
Today, cryptocurrencies are reshaping how businesses process international payments. These transactions use decentralised public ledgers, which any institution or individual doesn’t own. Customers can make crypto purchases from anywhere, leading to more business profitability. Research shows that merchants who accept crypto payments experience 327% increased ROI.
Smart Contracts in Business Transactions
The role of smart contracts in modern business transactions is clear for all to see today. These self-executing contracts allow businesses to code their terms of service into the contract and eliminate any intermediaries. The idea here is to make contract executions faster and more streamlined. It also ensures all transactions are secure and immutable.
In 2025, more businesses will likely embrace these digital documents. They are easier and more efficient to execute, especially for online businesses with no physical offices. The e-commerce sector can save money by eliminating the need for lawyers and brokers to draw up contracts. Also, smart contracts are more transparent and auditable because blockchain is not editable.
Faster and Cheaper Transactions
We have already mentioned that crypto transactions are decentralised. This means banks and other financial institutions don’t play a role in facilitating online payments. Due to a lack of intermediaries, crypto payments are often faster than traditional bank transactions. You only need an exchange wallet to transact instantly from anywhere. And yes, payments are 24/7/365.
Now, this leads to cost savings. Cryptocurrencies often have lower exchange fees than traditional transactions using credit/debit cards and bank transfers. Your business can save a few coins by using cryptocurrencies and transfer the benefits to your customers. Most companies provide better offers for crypto purchases compared to traditional payments. It’s a win-win for all.
Preventing Online Payment Fraud
Many people continue to lose money to online scams in this digital era. Chief among them is credit card fraud, with more than 214,000 cases reported in 2024. This type of criminal activity can result from stolen cards, card skimming, or phishing. Some cardholders can also be scammed into providing their PIN and other critical details.
Cryptocurrencies, meanwhile, can provide a more secure way to transact online. Blockchain technology is not only immutable, but transactions are also irreversible. Each transaction block connects to the previous one, making payments more secure and traceable. Its decentralisation also means banks and other authorities cannot track your crypto transactions.
However, your cryptos are still at risk if you don’t take precautionary measures. Here’s what to do:
- Use the most secure and reputable exchange wallets.
- Withdraw your digital assets as soon as possible.
- Use hardware wallets that don’t need an online connection.
- Create a strong and unpredictable wallet password.
- Use two-factor authentication (2FA) to protect your wallet.
Protection Against Inflation
One aspect that has made cryptos appealing to online investors is protection against inflation. So, what exactly is inflation? It’s simply a process that sees fiat currencies like the USD and EUR lose value. When this happens, prices of commodities increase. That’s why some governments keep printing more money than the public needs.
Cryptocurrencies, on the other hand, are resistant to inflation. Bitcoin is a good example. This coin was trading at $20,000 in late 2020 and is now soaring above $90,000 in December 2024. That’s because the supply of digital coins is limited, creating high demand in the market. So, you can expect the value of these coins to keep increasing. That’s good for business.
The Takeaways
The dynamic relationship between e-commerce and cryptocurrencies will likely hit new heights in 2025. We’re entering an era where newer generations seek more convenient and cashless payments. The digital marketplace can take advantage of this situation and grow even further. This could be the year of blockchain technology.