Smart Regulations Can Boost Blockchain Adoption In Retail And Ecommerce
As with most new technologies in an early adoption phase, blockchain solutions, too, can flourish only in the right regulatory framework. For the retail and ecommerce industries specifically, financial authorities need to devise clear guidelines for how blockchain can be utilized. Without such guidelines, companies around the world will be reluctant to adopt blockchain solutions due to the risk of legal ambiguity.
A number of multinational companies are adopting or have dabbled in blockchain technology in the ecommerce space to enhance their security and track their supply chains. Household names such as Amazon AMZN -0.6% , Walmart WMT +0.1% , IKEA, Nestle, Alibaba have collaborated with tech giants such as IMB and Microsoft MSFT -3.6% to explore blockchain solutions.
According to Brent Hale from TechGuided, “ecommerce platforms tend to integrate the technology to create a chain of information that vendors and customers can easily access to check the origin and authenticity of the product. This, in turn, increases the trust and loyalty of the consumer. Also, the vendor can identify the damaged goods even before their arrival.”
In terms of how regulatory authorities may hinder or help blockchain solutions within the retail and ecommerce space, the answer depends on the type and extent of regulations.
Sensible regulations that cut down on potential fraud and hold vendors to the same standards as traditional payment companies and marketplaces will likely accelerate adoption as enterprises don’t like using unregulated vendors.
“But if the regulations go too far then they’ll diminish the appeal of using this technology in the first place. The best regulations will take advantage of the unique benefits of blockchain technology, such as total transparency and the ability to automate important activities to cut down on human error and potential fraud,” said Omid Malekan, Professor at Columbia Business School and the author of The Story […]
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