E-commerce has become sensationalized in the 21st century, which has certainly turned out to be the most lucrative sector, that also hosts the richest man in the world, Jeff Bezos, the founder of e-commerce giant Amazon. The advent of e-commerce has changed the definition of how we shop. The industry has empowered the common shopper with convenience, affordability, and a vast array of products like never before. But with the astounding growth of the e-commerce industry, various problems related to payments, supply-chain management, data security, transparency, and efficiency have surfaced.
Highlighting the issues faced by the centralized e-commerce industry
E-commerce is currently valued at an astounding $2.8 trillion and is expected to increase the global digital buyers base from 1.66 billion in 2016 to 2.14 billion by 2021.
Online shopping has become one of the most popular online activities worldwide but the centralized nature of online trade has established a monopoly for a few giant e-commerce companies like Amazon, Alibaba, and eBay. Let’s discuss the loopholes in the current e-commerce business model and how HyperionX is set to revolutionize it!
Lack of transparency
Donald J. Trump, President of the United States, recently tweeted about Amazon’s transparency concerns for cutting off direct contact between consumers and sellers. The centralization of the current e-commerce market is not transparent in reference to additional charges and commissions, leaving both the seller and buyer utterly unaware. These platforms also require the distributor to pay commission fees for selling their products while charging consumers with hidden costs for shopping, thus generating revenue for the platform on both sides of the transaction.
High transaction processing fees and insecure payment methods
Presently, electronic payment methods are dominated by payment solutions like PayPal and Skrill, and in recent times these solutions have failed to secure their clients from hacks. Current methods also lead to high processing fees, most upwards of 5% of the total price on any given transaction, thus making centralized e-commerce a nightmare for retailers and consumers alike.
In addition, sellers usually wait as long as 7-14 days to receive payment for their sales and if a refund is required, the recipient must wait days on end to be reimbursed.
Faulty supply chain management
It's no doubt that supply chain management is the most pressing issue for the industry. The opaque, centralized nature makes record keeping and logistics corruptible, increasing vulnerabilities while decreasing the trust of consumers.
No data security
For years, these online retail giants have been exploiting customer data to gain dominance, while also manipulating consumer purchasing habits. Apart from this, data breaches within these organizations have increased manifold, creating a constant risk of malicious attackers acquiring financial and personal information.
Online enterprises rely heavily on the legitimacy of its reviews. Customer feedback, whether good or bad, is extremely crucial as it influences purchasing decisions in 97% of all cases. Fake reviews are one of the biggest reputation killers that can quickly tarnish the stature of a good e-commerce marketplace. Given the importance of evaluation, these centralized sites witness continuous misconduct on the part of unscrupulous sellers that try and cheat the system, degrading the trust of customers.
Introducing HyperionX: Changing the fundamentals of e-commerce
Blockchain technology has taken the world by storm, with the global market expected to see a surge of more than 400% by 2021, according to a recent Statista Report.
The inherent properties of blockchain - transparency, high level of security, time-stamped data, and p2p transactions - makes it the perfect technology to overcome the challenges mentioned above. The transparent nature of the distributed ledger allows all transactions occurring on it to be viewable and auditable to those on the network. The payment method congruent to a blockchain protocol invariably is secure, and has a much lower cost per transaction then conventional payment methods. The ability to track the movement of goods and items from source to consumer can be performed with ease. For example, industry leaders like Walmart and Nestle are currently looking into using blockchains to better their logistics. And finally, the time-stamped nature of all transactions can help verify reviews for authenticity on the immutable ledger.
HyperionX explores the potential of blockchain technology to create a decentralized, autonomous, 'smart market’ ecosystem. The goal is to leverage blockchain-enabled smart products to solve the haunting issues of the e-commerce industry. Peerion, HyperionX’s flagship product, will provide a trust-less, environment by leveraging smart contracts for autonomously managed peer-to-peer interactions.
Peerion: The Smart Market Ecosystem
Peerion will enable buyers, sellers, educators, artists, content creators, and developers alike to connect, trade, and share products, services, and ideas in a trust-less environment. The smart marketplace will utilize autonomous tools such as the Partner Ambition Loop (PAL), a job matching tool, and various others that have been designed to simplify daily tasks for peers on the platform. HyperionX has also developed a custom consensus algorithm, Proof-of-Passion (PoP), to create a distributed p2p network based on uptime and reputation parameters, keeping nodes in the network honest and reputable.
The peer-to-peer platform enables deep learning capabilities with the help of Kabba,
HyperionX's Artificial Neural Network. Kabba verifies peers as legitimate users along with securing and transmitting data to be processed by the nodes. In essence, Kabba assists the entire smart marketplace by connecting peers with one-other in the relevant markets through introspection. It is also capable of assisting peers as they liquidate their products, services, and resources at the highest possible price while staying within the limits the peer sets.
With the amalgamation of PAL, POP, and Kabba, the network will run an honest network for trustworthy peers.
The entire Smart Market Ecosystem is gamified, or based on the concept of Gemunomics (gamified economics), giving users a fun and interactive experience powered by smart contracts to enable easy p2p transactions. The blockchain-enabled Smart Market model is based on the concept of a shared economy. Thus the HyperionX ecosystem is customer-oriented and free from all the loopholes of the centralized e-commerce industry.