Blockchain eCommerce vs. Traditional eCommerce

Since the birth of World Wide Web (the internet) in the 1990s. and its tech rise, commerce has increasingly shifted online, paving the way for the rise of eCommerce (today known as traditional eCommerce) — a digital transformation that allows businesses and consumers to engage in transactions seamlessly over the internet.

eCommerce has changed the way people buy and sell goods, making shopping faster and more convenient. Traditional eCommerce platforms have been created and they have dominated online retail for years. However, they often come with issues like high transaction fees, slow payment processes, and centralised control.

With the next tech rise — which is blockchain development, need for blockchain eCommerce has arise. It offers a decentralised alternative to traditional eCommerce, allowing direct transactions between buyers and sellers. By removing the middlemen, blockchain-powered marketplaces offer lower fees, instant payments, and increased security.

So, how do these two eCommerce models compare exactly? Let’s explore the differences.

What is Traditional eCommerce?

Traditional eCommerce refers to the conventional model of online shopping, where transactions are facilitated through centralized online selling platforms like Amazon, eBay, and Shopify. These platforms act as intermediaries, connecting buyers and sellers while managing payments, logistics, and customer data. Payment processing is typically handled by third-party services like PayPal, Stripe, or credit card companies, which charge fees for their services. In this model, the online platform holds significant control over the transaction process, user data, and even the rules of engagement.‍

While this centralized approach has enabled the rapid growth of eCommerce, it also came with limitations, such as high transaction fees, data privacy concerns, and vulnerability to fraud.

What is Blockchain eCommerce?

Blockchain eCommerce, on the other hand, leverages decentralized blockchain technology to facilitate online transactions. Blockchain is a distributed ledger technology that records transactions across a network of computers in a secure, transparent, and immutable manner.

Unlike traditional eCommerce, blockchain eCommerce eliminates the need for intermediaries by allowing peer-to-peer transactions.

This model is often associated with cryptocurrencies like Bitcoin and Ethereum, but its applications extend far beyond digital currencies. Blockchain eCommerce platforms enable users to buy and sell goods and services directly, with transactions verified and recorded on the blockchain. This decentralized approach offers several advantages, including enhanced security, transparency, and cost efficiency.

How Transactions Work on a Blockchain eCommerce

1. Buyer places an order – The transaction is created and recorded on the blockchain.
2. Smart contracts handle payments – The payment is automatically verified and secured; Payment fees are very low, as there is no middleman.
3. Escrow system ensures security – Funds are held until the product is received.
4. Transaction is recorded – Once the order is completed, the details are permanently stored on the blockchain.
5. Immutable records – No one can alter past transactions, ensuring transparency.

Unlike traditional eCommerce platforms that require banks and third-party verification, blockchain enables instant and tamper-proof transactions, reducing fraud and making online shopping more efficient.

Similarities Between Traditional and Blockchain eCommerce

Although blockchain eCommerce operates differently, it still shares key functions with traditional platforms:

• Online Shopping Experience: Buyers browse products, add to cart, and place orders as usual.
• Seller & Buyer Interactions: Sellers list products, set prices, and manage stores.
• Logistics & Delivery: Products still need shipping, whether using blockchain or not.
• Marketing & Customer Service: Businesses still use advertising and customer support to boost sales

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Both eCommerce models aim to connect buyers and sellers, but blockchain enhances the experience with decentralisation, transparency, and better prices due to lower sellers costs.

Key Differences Between Blockchain eCommerce and Traditional eCommerce

To better understand the impact of blockchain on eCommerce, let’s break down the key differences between the two models:

Astal is Leading the eCommerce Change!

Astal is bridging this gap and leading eCommerce into future by building a blockchain-powered eCommerce platform designed to solve all these challenges! It offers an easy-to-use, decentralised marketplace with low fees and instant payments. There is no middlemen, no hidden fees.

For sellers this means direct payments, more earnings and full control over your store.

For shoppers this means -  various choice of payment, lower prices, secured data privacy and safer online shopping.

So, if you want a platform that gives you more freedom and privacy, and saves you money, Astal is the way forward. See why more people are choosing Astal Marketplace for their online selling & shopping needs!