What Makes German E-Commerce Firm to Look At Blockchain Technology?
The Germany-based software giant, Gambio Gmbh, is creating Global Alliance of Merchants on the Blockchain (GAMB) specifically for merchants to deal with the emerging digital transactions. GAMB’s objective is to provide merchants with power that enable sellers, who are located on the platform’s marketplace, to contribute to the rules thus enabling them to govern their businesses. This is not the case in respect of centralized marketplace. The new platform could change the perceived belief that online shopping is mostly restricted to centralize one and the technology could also allow the adoption of crypto as means of payment.
Advantages of Blockchain
Though there are skeptics about the blockchain technology, its use case is set to grow beyond the fintech sector. The e-commerce platform could be one among them since GAMB thinks that the blockchain technology advantage is the transparency for the online marketplace. The key factor is that a decision on the kind of services and features apart from costs and fee structures would not be established by it. On the other hand, merchants could take a call among themselves in a decentralized autonomous association.
GAMB pins a lot of hopes on merchants to become members of this alliance. They believe that this would allow them to get access to involve themselves in the process of decision-making. The application also allows the de-centrally organized marketplaces to allow enterprises to operate their online shops locally. At the same time, it would also ensure access to consumer demand, SEO, and traffic. The marketplace would also part with their gathered data so that the competitive position of merchants could be improved.
A senior advisor, Felix Hotzinger, told Forbes, “By using blockchain technology, we can provide a platform which not only provides secure transaction but an opportunity to create an ecosystem of vendors and merchants which is self-governing.” Gambio pointed out that there were some big flaws in centralized marketplace systems of some of the e-commerce giants. Significantly, adoption of digital currencies is yet to gain traction in the sector.
Currently, about 96 percent of the population in the United States is shopping through online only. Aside from that, if Big Commerce data is true, more than 2.1 billion people are predicted to shop online by the year 2021. That meant there is more likelihood of digital coin and distributed ledger technology becoming the improving process in the e-commerce marketplace.
However, there are certain opinions that suggest unionizing merchants could throw a lot of issues in a marketplace. One among them is that it is not necessary as to what majority of sellers think good should be supported by everyone concerned. Therefore, it would be a tough call whether Gambio has the ability and the resources to provide the merchants with requisite power through a decentralized marketplace.
That does not mean that e-commerce marketplace could not explore the possibility of the new age technology. In any new app or technology, there were issues encountered, and the bugs were fixed. Similarly, there are hopes that any issues that might crop up could also be addressed.