The use of blockchain for online marketplaces is very important these days because one of the benefits it brings is increased transparency. The concept of online marketplace has revolutionized the way we shop and sell products and services. Currently in many countries these marketplaces lack transparency as well as face various challenges such as high transaction fees and fraudulent activities. Blockchain technology has a solution to these problems by introducing decentralization, transparency and immutability to online marketplaces.
Blockchain is a distributed ledger technology that we all know enables secure and transparent peer-to-peer transactions without the need for intermediaries. Data is stored in a decentralized network of computers, making it resistant to tampering, hacking and other malicious activities. This makes blockchain an ideal technology for online marketplaces. So trust and security are very important factors that can be minimized in the blockchain ecosystem. Because people trust online market places very little due to various reasons. Especially in countries like ours because there is a lot of fraud involved.
This reduces the cost of transactions and also ensures that the transaction is transparent and fair for both parties by eliminating the intermediaries. Blockchain also provides a clear and permanent record of all transactions. Hence the accountability and trust are enhanced. Transection fee of online marketplace will be very very low. Since blockchain eliminates intermediaries so the transaction fees associated with them are also eliminated. This results in lower fees for both buyers and sellers. Thus is is more affordable for them to participate in the online marketplace.
Blockchain also provides an effective solution to the problem of fraudulent activities in online marketplaces. The technology enables the use of smart contracts which are self-executing programs that automatically execute the terms of an agreement. The system uses blockchain technology to store and verify the reputation of buyers and sellers. Trust is very important in online marketplace that is true. This enhances the trust between the parties and reduces the risk of fraudulent activities.
Decentralized reputation systems also make it easier for new buyers and sellers to enter the marketplace. Reputation of a newly established store will be very high on the day of its business initiation. Nice. In Bangladessh and India, online marketplaces such as Flipkart, Amazon, Daraz and Snapdeal have revolutionized the e-commerce industry. They face several challenges such as lack of trust and transparency, high transaction fees, and fraudulent activities. The use of blockchain technology can help address these issues and enhance the e-commerce industry in India and Bangladesh.