As e-commerce entrepreneurs, it is important to think about how the future will
ID: 368083 • Letter: A
Question
As e-commerce entrepreneurs, it is important to think about how the future will impact our businesses. Since technology is always changing and advancing, it is important to identify the advancements as early as possible in order to plan and implement adjustments to the business. With this in mind, let's discuss the major technological advancements on the horizon. What are the major technological advancements that are anticipated to accompany the Internet of the future? Discuss at least one advancement and the impact it will have on the Internet and e-commerce.
Explanation / Answer
Let us discuss the effect of Blockchain (basis of Bitcoin) technology on the internet and e-commerce on the whole. The blockchain technology is entirely different than the internet operational technology used so far. In blockchains, there will be no centralized server where the users will communicate and transact data using their credentials. instead, there will be a network of nodes or administrators (every user will be an administrator) controlling the entire system. There will be no central server to store the data. All the users' personal devices will act as millions of points where the data will be temporarily saved and get updated simultaneously by all the users.
When we talk about the internet, the significant change points will revolutionize the industry. For example, the security will be at a very high level and the hackers can hardly access because there exists no central location and hacking all the copies of a document will require an enormous computing power which people will not have in practicality. The speed of collaboration and efficiency of internet-based service will be very high because all the users of a system can simultaneously update and observe changes in a single database. The technology also provides an opportunity to observe the documents publicly because all the transactions are open to all and there is a high level of transparency.
When it comes to e-commerce, the advantages are again quite a few. It will actuate faster and cheaper transactions between two or more parties irrespective of their geographic location. Note that the users, unlike the traditional currency, need not pay any commission on the transaction amount to any party while operation with the blockchain (Bitcoins) because no such parties exist and the transactions are dealt directly between two parties. The eCommerce supply chain involves numerous parties with negotiated commissions and shipping rates. On top of that, ordering, tendering, shipment tracking, delivery confirmation and settlement of the costs and charges are carried out in private heterogeneous systems of each party which requires the development of custom integrations using cumbersome software systems. With blockchain technology, the transactions, order details, agreed on fees and commissions (with smart contracts) can be used to save all the documents, load tender, shipping, delivery and any other possible events that affect financial settlements. Therefore, each individual or a company involved in the supply chain will make crucial data visible to the others without any need to negotiate custom interface. Such visibility significantly lowers the dangers of dispute, delays, and disorganization increasing efficiency.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.