Three things that retailers need to know about Blockchain today

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Credits: Getty Royalty Free

Many of us have heard of blockchain: we have seen advertisements about his power and searched the internet to find clues. if we are honest, most people, even entrepreneurs, have a limited understanding of the blockchain: what it is, how it works and why it counts.

In short, blockchain is a distributed digital ledger that allows more stakeholders share the same information, can not be hacked or manipulated, but this explanation probably brings clarity to dealers (and their customers).

The real question is why retail businesses should worry about the blockchain, [19659006] when many of its advantages are technically complex and seem to be very far away? Because the average consumer is changing rapidly. The expectations surrounding the cons egna and transparency, supply and authenticity are rapidly changing. lligence will eventually help retailers meet those expectations, probably even blockchain will play an important role, particularly in mobile payment, supply chain and finance applications.

Here are the three main ways in which the blockchain will probably change to detail

  1. Increasing transparency and consumer confidence

The vast majority of consumers do not care how the blockchain works, but have very clear expectations and values ​​when it comes to buying goods. They care that an organic tomato actually comes from California and that their engagement is conflict free. Of course, they also have higher concerns, such as the confidence that their food and their medicine have been produced and managed safely.

Historically, consumers have had to trust third parties, many of them motivated by profit, that their product is produced in a certain way or comes from a particular place. Blockchain changes this with its only source of truth. If all the suppliers of a product are part of a blockchain, retailers and their customers could potentially track a single product – from raw materials from the other side of the world, through every stage of production and delivery.

Consumers could access this information and obtain the insurance they need, for example, by scanning a QR code in-store and receiving transparent information at the moment. Does it look like something to be expected in 20 years? In reality it is happening in China now in the stores of Alibaba and JD .

In some parts of the world this kind of transparency is very valuable. It also promotes the much needed safety and security measures in a global market in the face of high consumer pressures.

  1. Ensuring the authenticity and reducing counterfeiting

In relation to transparency, companies with global supply chains (which are now virtually all retailers) are more responsible than the fact that the goods are exactly as they claim to be to be. This power not only helps the primary and secondary markets of resale in products such as luxury goods, but also means a lot for the safety of products

Take for example a pervasive problem you might know little about, depending on where you live: counterfeit alcohol. For example, in some parts of Eastern Europe and China, the black market for alcohol has exploded. Brown-Forman, the company that makes Jack Daniel's, estimates that about 30% of all alcohol in China is fake . The Office of the European Union for Intellectual Property (EUIPO) estimates that counterfeited alcohol costs to EU Member States about 1.2 billion euros at the # 39; year. While the resale of real bottles is a significant and more difficult problem to mitigate, the blockchain could play an important role in tracing the spirit or origin of an over-the-counter drug that is literally a life-saving application.

  1. Accelerating delivery and smoothing logistics

In general, no consumer appreciates, but every retailer is painfully aware of how incredibly complex and demanding it is to have the right delivery, from the manufacturer to the retailer or directly to the consumer's door. Disputes between the parties along the supply chain, communication, administrative management and monitoring of all present challenges. These disputes are often difficult and expensive to solve because they involve incompatible systems, poor data entry and more or less a telephone match. AI, autonomous fleets and other new technologies can alleviate some of the pain, but blockchain – a single ledger of indisputable data and history – could make transportation and logistics more efficient, streamlined and reliable. This offers infinite positive effects for retailers and consumers.

Now, the hard part

Of course, blockchain will face real challenges before companies and consumers can reap the benefits. Ironically, for a technology that can foster trust among retailers, consumers, and others along the supply chain, there are some challenges related to trust, such as making supply chain partners (and even competitors) they work one with the other. [19659003] But there is no doubt: blockchain will make companies smarter and more efficient. Retailers who will learn how to integrate it into their business will be able to offer a better customer experience.

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Credit: Getty Royalty Free

Many of us have heard of blockchain: we have seen advertisements about his power and searched the internet to find clues, but I think that if we are honest, most of the people, even entrepreneurs, have a limited understanding of the blockchain – what it is, how it works and why it counts.

In short, blockchain is a distributed digital ledger that allows multiple stakeholders to share the same information. hacked or ma nipulated.This explanation probably brings clarity to dealers (and their customers), however.

The real question is why retail companies should worry about the blockchain when many of the its benefits are technically complex and seem to be far away – because the average consumer is changing rapidly – expectations on delivery times and transparency, supply and autent they are rapidly moving. And while new technologies such as artificial intelligence will eventually help retailers meet those expectations, probably even blockchain will play an important role, particularly in mobile payment, supply chain and finance applications.

Here are the three biggest ways in which the blockchain will probably change in detail.

  1. Increasing transparency and consumer confidence

The vast majority of consumers do not care how the blockchain works, but have very clear expectations and values ​​when it comes to buying goods. They care that an organic tomato actually comes from California and that their engagement is conflict free. Of course, they also have higher concerns, such as the confidence that their food and their medicine have been produced and managed safely.

Historically, consumers have had to trust third parties, many of them motivated by profit, that their product is produced in a certain way or comes from a particular place. Blockchain changes this with its only source of truth. If all the suppliers of a product are part of a blockchain, retailers and their customers could potentially track a single product – from raw materials from the other side of the world, through every stage of production and delivery.

Consumers could access this information and obtain the insurance they need, for example, by scanning a QR code in-store and receiving transparent information at the moment. Does it look like something to be expected in 20 years? In reality it is happening in China now at Alibaba and JD shops .

In some parts of the world this kind of transparency is very valuable. It also promotes the much needed security and security measures in a global market in the face of increased consumer pressure.

  1. Ensuring the authenticity and reducing counterfeiting

In relation to transparency, companies with global supply chains (which are now virtually all retailers) are more responsible than the fact that the goods are exactly as they claim to be to be. This power not only helps the primary and secondary markets of resale in products such as luxury goods, but also means a lot for the safety of products

Take for example a pervasive problem you might know little about, depending on where you live: counterfeit alcohol. For example, in some parts of Eastern Europe and China, the black market for alcohol has exploded. Brown-Forman, the company that makes Jack Daniel's, estimates that about 30% of all alcohol in China is false . The Office of the European Union for Intellectual Property (EUIPO) estimates that counterfeited alcohol costs to EU Member States about 1.2 billion euros at the # 39; year. While the resale of real bottles is a significant and more difficult problem to mitigate, the blockchain could play an important role in tracing the origin of a spirit or an over-the-counter drug that is literally a life-saving application.

  1. Speeding up delivery and smoothing logistics

In general, no consumer appreciates, but every retailer is painfully aware of how incredibly complex and demanding it is to complete deliveries independently of the manufacturer or retailer or directly to the door of a consumer. Disputes between the parties along the supply chain, communication, administrative management and monitoring of all present challenges. These disputes are often difficult and expensive to solve because they involve incompatible systems, poor data entry and more or less a telephone match. AI, autonomous fleets and other new technologies can alleviate some of the pain, but blockchain – a single ledger of indisputable data and history – could make transportation and logistics more efficient, streamlined and reliable. This offers infinite positive effects for retailers and consumers.

Now, the hard part

Of course, blockchain will face real challenges before companies and consumers can reap the benefits. Ironically, for a technology that can foster trust among retailers, consumers, and others along the supply chain, there are some challenges related to trust, such as making supply chain partners (and even competitors) they work one with the other. [19659003] But there is no doubt: blockchain will make companies smarter and more efficient. Retailers who will learn how to integrate it into their business will be able to provide a better customer experience.

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