How the blockchain system will transform the retail world
Given its particular nature, blockchain is often misunderstood. Blockchain actually, can benefit from almost all sectors, from restaurants to digital signage producers. The blockchain is a decentralized ledger, which is immutable and completely transparent.
It is a transaction database shared by all the nodes participating in a system: a complete copy of the chain of blocks of a currency contains every transaction never executed in the currency. With this information, you can find out how much value belonged to each address at any point in the story.
This means that the blockchain serves as a public ledger, where each transaction is recorded and recorded by a group of users. Users confirm transactions through a process known as mining, in which users lend their computer processing power to solve math equations to confirm and record bitcoin transactions. While bitcoin was the first to use blockchain, it is not the only app for this. Ethereum has also recently developed its own blockchain, and each cryptocurrency also uses some form of the blockchain.
In the case of retail, blockchain will mainly help in two main ways, providing greater transparency to customers and giving customers greater control over their loyalty programs. With supply chains powered by blockchain, customers can obtain complete information on where the product came from and how it arrived at the storefront. Plus, retailers can use blockchain-based loyalty programs to improve the customer experience.
These loyalty programs can generate tokens, which users can exchange or sell with each other, or redeem for purchases. While the blockchain is still on the horizon, large retailers like Wal-Mart are already using supply chains powered by blockchains.
As mentioned earlier, retailers may have better supply chain management due to the blockchain. Because blockchain technology is inherently immutable, retailers can safely track products from production to the storefront. This is particularly useful for preventing epidemics in food products. The system can also help retailers manage identity by confirming a customer’s identity on the blockchain or an employee’s identity for security reasons.