Blockchain for eCommerce transactions
In recent times we’ve fielded questions from clients concerning eCommerce and Blockchain. Blockchain is still in its developmental stages and is really only available to businesses through third-party companies. For example:
- Ethereum was specifically designed to offer a range of different smart contracts. The Create a Democracy Contract Guide explains how to draft non-financial smart contracts.
- Ripple’s blockchain technology allows businesses to securely send international payments, source liquidity, or process payments. It’s currently used by more than 1,000 companies and has a sound reputation.
- Storj (the oldest and most well-known brand), Sia, or MaidSafe are three of the largest organisations offering decentralised cloud storage. Filecoin is another up-and-coming cloud storage company but its services haven’t yet been launched.
- Companies such as ShoCard provide organisations with blockchain identity services. ShoCard allows companies to verify and authenticate employees’ identity for access to the company’s network and data without a username or password.
Businesses selling on line can accept Bitcoin payments through retail platforms such as Shopify and Magento. Magento allows you to also accept Litecoin, Ethereum, Ripple and more than 50 other cryptocurrencies.
One industry where Blockchain technology stands to disrupt the status quo is factoring. Factoring, a financing instrument alternative to loans in the context of which a company transfers its accounts receivables to a third party can use Blockchain technology, specifically Ethereum Blockchain to timestamp a unique identifier on each invoice and have it cryptographically hashed so the invoice can’t be financed more than once. The hashing function encrypts data so confidential details are unreadable. The accounts receivable is then incorporated in to a token in order to be traded and transferred on the blockchain that works also as a settlement layer.
Acknowledgements
Stacey McIntosh Editor-in-chief of Sage Advice UK
Dario Longobardi CEO Neos Consulting Srl, Partner Neosperience SpA