How Web3 Will Transform Online Commerce

Web3 is here, and the decentralized, blockchain-powered future of the internet is already changing the face of online commerce. 

As cryptocurrency trading grows, the technology behind the crypto revolution continues to find a foothold in the commercial world. Nike, Starbucks, and most major supermarkets now rely on the blockchain for varied reasons. Nike has used blockchain tech to tokenize and authenticate its sneakers. Starbucks uses the blockchain to trace its coffee from farm to cup, and every major chain uses blockchain tech in supply chain management. We have barely scratched the surface of what is possible.

Web2 focused all its power on monolithic tech giants, such as Amazon and Facebook. Web3 technology promises to shift the power from major organizations to the individual. That should give you a more unique, transparent, and fair shopping experience. Here are a few things to look out for.

1. Decentralized Marketplaces

The old world of Amazon and eBay is all about centralized models and charging sellers and buyers fees to use the platform. They’re easy places to shop, and your financial information is relatively safe, so they have become the default option for consumers. But the future looks very different. 

Web3 marketplaces effectively fire the intermediary platform. With peer-to-peer transactions, the platform can effectively step back and let you keep control of your data and your deal. OpenBazaar and Origin Protocol help you set up a decentralized store where transactions are all governed by smart contracts. XRP, the cryptocurrency of the Ripple Network, can facilitate payments quickly, across borders and with extremely low fees due to cutting out the intermediary banks. The coin’s use in DeFi apps and peer-to-peer transactions has made it a cryptocurrency leader with a market cap of $121.12 billion as of March 11^th, according to Binance. 

2. Enhanced Trust and Transparency

Users have stopped trusting Web2 review sites as affiliate marketing turned a public service into an easy money-making opportunity. Sellers also have problems building credibility and a reputation for delivering the goods, and the blockchain is the answer to both issues.

The blockchain provides a completely transparent record of every transaction, so it is much easier to demonstrate a solid track record without building up feedback scores on eBay and Etsy. With blockchain tech, customers can also check the entire product journey and ensure they’re buying authentic goods or relatively fresh food. VeChain and IBM Food Trust already use blockchain to map out the whole product journey. That’s a level of transparency we are just not used to, but it can only improve the overall experience.

3. Data Ownership and Personalization

In the Web2 era, it is a known fact that centralized platforms harvest and monetize user data, with the lines of consent often blurring. There are constant privacy concerns, users have limited access and control over their data, and big firms suffer data breaches with frightening regularity. 

Web3 tech changes the rules as decentralized identity systems can confirm your identity without handing over any information. Shoppers can control their data and monetize it by selling their information to certain brands or platforms. 

4. Truly Global Market

In a centralized, Web2 world, cross-border transactions are often expensive thanks to hidden fees, currency conversions, and other platform charges. Some sellers simply cannot give you the chance to buy their wares because of the fees involved.

Web3 should open up the marketplace with instant, low-cost, and truly global payments. Smart contracts can take care of tax calculations and postage, and you won’t be limited to sellers who can navigate the demands of the giant platforms.

What does this mean? Theoretically, boutique sellers, farmers, and artists from around the world will be able to sell their goods to an entirely new audience. Merchants will be able to take cryptocurrency payments with low fees and do business with the world. 

Challenges to Adoption

Web3 adoption is well underway, but before it takes over completely, we will have to address a few issues. They include: 

• Accessibility and Education: Digital literacy is still a long way off for large portions of society. Blockchain and crypto tech are getting simpler, but we still need to work on education, and simpler DeFi platforms.
• Scalability: Blockchain congestion is an issue, and we are still looking for the perfect blockchain that can handle the increasing mass adoption of the e-commerce world. Nobody knows what the demands will be as the world switches to blockchain tech en masse, but the consensus is that we don’t have the solution yet.
• Regulation: There are separate and conflicting crypto regulatory frameworks worldwide, which is an obstacle to a truly global marketplace.

Conclusion

Web3 will bring a new era of decentralized marketplaces, complete transparency, and peer-to-peer payments between Middle America and the heart of Africa. The blockchain will change how we interact with businesses, individual sellers, and the world, and we can’t wait to see how it turns out.