The studies show that cryptocurrencies are one of the major driving forces for economies around the globe. The recent pandemic has shown the caliber of custom eCommerce development with blockchain technologies.
These days many e-commerce giants are showing interest in cryptocurrencies to provide more convenience to their buyers. If we talk about the present-day scenario, there are more than 3000 different types of cryptocurrencies worldwide.
Today we will discuss the benefits and challenges that come with custom eCommerce website development. We know that many of our readers may be unaware of cryptocurrencies, so let's start with a brief introduction about them.
What are Cryptocurrencies, and how does it work?
For a layman, the best words to describe cryptocurrencies is that it is a form of digital money. If we consider the investor's point of view, it can be described as a system of value. Just like shares in the stock market, the value of cryptocurrencies keeps on fluctuating over time.
The fluctuations of cryptocurrencies value depend on numerous factors like the utility of blockchain and the interest of investors. It is also a fact that determining the value of these currencies has a maximum dependency on investors.
Blockchain technology is the primary driving force behind the working of cryptocurrencies. We can refer to blockchain as a digital ledger that records the transactions. These ledgers are distributed across a network of multiple computers that control and authenticate the transactions.
Underlying blockchains are used to record the transactions made using cryptocurrencies. All the transactions are converted into blocks and added to the chain to form Blockchains. These blockchains keep the network running by authenticating the transactions.
Benefits of cryptocurrencies with custom eCommerce development
As we know, eCommerce is one of the largest sectors, and numerous opportunities are yet to explore. In recent times the world has witnessed a surge in demand for having cryptocurrencies as payment options.
eCommerce giants such as eBay and PayPal are already working on this, and many more will follow soon. Have you ever wondered why there is so much rush for it? Well, if you are still wondering then, the below advantages will surely bring some clarity:-
Lower fee for transactions
Reducing the transaction fees charged by banks for facilitating transactions is one of the major concerns for eCommerce stores. These fees often result in increased prices of products and services. Cryptocurrencies provide an efficient solution for it.
By using an eCommerce development company to facilitate cryptocurrency payments, you can overcome this issue. The transaction fees of making payments with such currencies are less when compared to fees charged by banks and other financial institutions.
Lower risks of cyber threats
Cyber threats are serious concerns that haunt eCommerce businesses worldwide. The financial and personal data of your users are always at risk. Using blockchain technologies can help you to reduce these risks as data is stored in different computers. Blockchain technologies also come with encryptions to overcome frauds and hacking attempts.
More reach for your business
Offering an additional mode to make payment for products and services that users buy at your store will help to get a better reach. You can also expand your business to third-world countries by facilitating a payment option not bound by physical borders.
An eCommerce website development company can help you to provide an option of making payments using cryptocurrencies. Blockchain technology can open the doors for the expansion of your eCommerce business in developing and under-developed countries.
More security for Merchants
Since there is no involvement of third parties like banks in the payment processes, it reduces fraudulent transactions. The transactions completed using the Cryptocurrencies cannot be reversed until the merchant agrees for it.
You might have heard of instances where banks reverse the transactions without even asking for your consent. By using cryptocurrencies you can ensure full control over payments you receive from users.
Challenges that eCommerce development company face with Cryptocurrencies
Though cryptocurrencies have many benefits, they present some challenges too that an eCommerce website development company can face. Below are some of the major drawbacks and challenges that come with using cryptocurrencies as payment options.
Lack of Blockchain professionals
Whenever you search for a blockchain engineer, you will notice a scarcity of such professionals. Integrating blockchain technologies requires expert skills, and your eCommerce web development company can suffer due to it.
The lack of blockchain professionals also results in a sluggish development process. You will need to find skilled and trained professionals to manage and solve complex issues of peer-to-peer networks.
Absence of standardisations
Though there are several blockchain technologies, a lack of standardization presents a complex challenge for developers. This problem often results in interoperability, increased costs, and difficult mechanisms for an eCommerce website.
The absence of standardizations is among the primary reasons that put an impact on the usability of such currencies as a payment mode on eCommerce stores.
Problems with large scale transactions
Most of the popular cryptocurrencies such as Bitcoin and Ethereum are prone to slow down while processing transactions. Your eCommerce website developer can face issues with its implementation for eCommerce websites dealing with large-scale transactions.
Restriction to use cryptocurrencies is one of the prominent reasons that cause problems for eCommerce stores. In many countries, the idea of using cryptocurrencies can land businesses in trouble. Always go through the legalities concerning such currencies before working on plans to integrate them.
Frequent fluctuations in the value
One of the most prominent risks of using Cryptocurrencies on eCommerce stores is the fluctuating values. You may have noticed that the value of such currencies keeps on fluctuating frequently.
Sometimes these changes can be on a higher scale than what we face with real-world currencies. A sharp fall in the value of cryptocurrencies can cause significant losses for your business.
You can get a competitive edge by using cryptocurrencies to facilitate the payments on your eCommerce store. Make sure that you hire only experienced and skilled custom eCommerce development experts for it. Also, ensure to update and encrypt your crypto wallets to enjoy their benefits to their full potential.
Published by Hitesh Chauhan