How Nando Caporicci Believes Blockchain Technology Will Affect E-Commerce

By now, most of us are aware that Bitcoin and blockchain technology are actually two different things. The former is a digital currency, and the latter is the method of keeping a ledger of transactions. It just so happens that Bitcoin transactions are approved and stored via blockchain. We also have been made aware that blockchain will disrupt many things in our lives, including e-commerce. Many of us, though, really don’t understand how this will occur.

In order to find out more about the changes that blockchain technology will bring to e-commerce, we spoke with Nando Caporicci. Caporicci is the CEO of Olitris Technologies, a company that creates and maintains Bitcoin mining equipment. He also has experience running an affiliate marketing program for Roadmall.com. Caporicci graduated from Concordia University, where he received a Bachelor of Arts in political science. He went on to the City University of Seattle, where he received an MBA with a specialization in marketing.

What is Blockchain and How Does It Work? –

According to Forbes Magazine, blockchain is an electronic ledger of transactions. Because it is maintained in a decentralized form, it has more security than other types of ledgers. Investopedia states that one block in the chain can store a thousand or more transactions. Each transaction is vetted before it is approved. The network of distributed computers checks to see that your transaction occurred properly by checking the time, amount and parties to the transaction. Your transaction will be stored with your digital signature and the digital signature of the seller.

This block is part of a blockchain of transactions. It is stored on many computers, so it is very difficult for hackers to alter all of the records. The records of every copy of the ledger must correspond with each other. A hacker would have to simultaneously identify and alter each instance of a record simultaneously.

Also, identities of buyers are purported to be kept secret. They are only identified as purchasers by their digital signature or by their username. The idea is to keep transactions secure and users’ identities private.

Why Blockchain in E-Commerce and What Changes Will It Make? –

Forbes has reported that most all industries will adopt blockchain technology over time. This includes e-commerce.

According to Investopedia, there are a number of advantages to blockchain technology’s use in e-commerce:

Supply-chain management: Before we get to the obvious advantages for keeping a ledger of sales transactions, let’s look at how blockchain is already being used today by Walmart. The big retailer has had concerns over the years about lawsuits emerging from tainted foods and pharmaceuticals.

According to the New York Times, Walmart, after piloting such efforts for two years, has decided that all lettuce and spinach manufacturers in their supply chain must become a part of tracking by blockchain produce as it goes through the facilities where the it is washed and cut, sent out to the warehouses and eventually to the local Walmart store. The idea is to pinpoint the origination point of tainted food in the supply chain. Walmart is already tracking poultry products and yogurt by blockchain, according to the Times.

Curiously, the Times reported that Walmart will not use distributed computers for their supply-chain monitoring efforts and will, instead, store the blockchain ledger on a cloud in IBM servers. So, one use of blockchain could be to thoroughly monitor the origins and movement of food and pharmaceuticals to ensure their safety.

Low-cost transactions worldwide: According to Investopedia, one big improvement of blockchain on e-commerce is to help speed financial transactions across the globe 24/7 and 365 days each year. Of course, banks are usually closed on weekends. Transactions on the weekends often do not post until Monday. This is not the case with blockchain. Transactions are posted every day around the clock to your account, which helps ensure customers don’t make mistakes and over-spend.

These transactions, according to blockchain proponents, are going to be either free or low cost. That is a huge boon to local merchants who work on small profit margins. According to Ecommerce Platforms, the average cost to the retailer per transaction to allow their customer to pay by Visa or MasterCard is 2.25 percent to 3.7 percent or more. If blockchain is utilized in a manner that indeed lowers fees for transactions for merchants, it would help every online retailer’s bottom line.

Privacy and security of transactions: If blockchain information is stored in a distributed network, then hackers would have to invest so much time and money into altering transaction records, that it would likely not be worth the effort. Also, if blockchain e-commerce transactions only show on the public face of the ledger with either the digital signature or user name of the purchaser, it would stand to reason that the hackers would have to get the purchaser’s information on the ledger itself, not through individual company databases.

Thus, blockchain may help e-tailers eliminate transaction fees entirely or at least reduce the fees, while providing customers with more secure and private transactions. There is certainly a worldwide outcry against the plethora of data breaches by major retailers.

According to Nando Caporicci, blockchain technology will become more and more dominant in the e-commerce industry in the coming years. There is a potential for safer foods if blockchain ledgers keep track of the foods as they move through the supply chain to the market. There is also a potential savings for customers and retailers if blockchain ledgers are used to complete financial transactions by eliminating or lowering transaction fees and creating more privacy of customer data.