How Blockchain Technology Is Disrupting The Retail Sector
The blockchain technology is rapidly expanding and being adopted in different sectors. The retail sector is the latest to embrace cryptocurrencies and the blockchain technology.
According to the US Census Bureau, some components within the retail sector will completely be disrupted with the growth of cryptocurrencies.
First, the sector is set to begin receiving payments in cryptocurrencies. It is important to note that credit cards are currently playing a major role in the sector. An introduction of crypto payments means that companies like Visa and Mastercard will suffer.
On the hand, we have the shipping component of the retail sector. For the success of any retail, efficient delivery is key. Amazon is leading the way with its fast delivery model. Another opportunity arises in terms of consumer tastes and preferences. Clients want to know the source of their products and ingredients used. This another part of the retail sector that is vital.
It is obvious that many retailers are faced with operational and logistical obstacles. Some retailers are embracing cryptocurrencies to solve this challenges.
Some investors see the volatility of cryptos as a window of opportunity. The volatility can sometimes be risky for the business, however, the earning from accepting crypto payments is motivating. Stores like Overstock, have made $120,000 within seven days in cryptocurrency revenue. Such returns might force business owners against changing their mode of payment.
Players in the market are coming up with easier ways of allowing crypto payments. CoinField from Canada recently revealed that the moonGO will be released and a physical card will allow customers to pay at any outlet where debit and credit cards are accepted.
Some retailers have already put in place blockchain backed mechanism to determine the source of products. Concerns have been raised over the material used to make products and people who made the particular product. Walmart, Unilever and Nestle, are among the prominent brands using the blockchain to handle this concern. Walmart is in a partnership with IBM in a deal that will see the Hyperledger Fabric blockchain to track commodities.
Already some success stories have been recorded. In July McDonald's recalled contaminated salads that were affected by a parasite identified as cyclosporine.
Experts argue that retails that will resist the blockchain technology might find themselves out of business soon. It is expected that the technology will be adopted in the entire sector. With cryptocurrencies, customers and shop owners will have to a work out a formula because there is no room for chargebacks.