After adopting blockchain technology, retail shopping giants like Amazon and Walmart have brought a more streamlined process to Black Friday. The technology allows for lower transaction fees, broader marketing of loyalty programs, less cumbersome management of the supply chain, and, for those who build on the BSV blockchain, a massive number of transactions that can be instantaneously processed. As Black Friday expands into a global phenomenon, merchants can better manage the massive amount of digital shoppers engaged with them.
While online shopping may seem like it already dominates the world, there is still plenty of room for growth. Data-crunching enterprise Big Commerce estimates the online U.S. retail market, currently less than 20% of overall sales, will reach $740 billion in 2023, accounting for 23% of purchase activity. In 2020, Black Friday alone accounted for $9 billion in revenue, a spike of 22% from the previous year (a figure driven in part by the pandemic and restrictions on capacity numbers in public indoor places). The peak of activity is the Thanksgiving holiday weekend, with both Black Friday and Cyber Monday seeing their highest levels of online browsing and online sales conversions.
Blockchain can make significant impacts in just these four areas as adoption builds:
- Reduced transaction fees: The average transaction cost on the BSV blockchain for Black Friday in 2020 was just $0.0314, minuscule compared to the Ethereum network ($1.46) and the Bitcoin Core network ($4.41), and even lower than the cost of a credit-card transaction fee, which is usually calculated as a percentage of the sale. The micro-transactions on BSV can deliver more profit to retailers or cost savings to consumers.
- Stopping fraud: When an item is recorded to the blockchain, it is traceable and its unique identifier is unchangeable. That level of accounting and irrefutability creates a single source of truth that gives retailers — especially those who sell luxury goods — and shoppers assurance that the item they are purchasing is indeed what they will receive. Blockchain also provides the best technology possible for managing and monitoring a company’s supply chain.
- Verified product reviews: The BSV blockchain also has the capability to verify reviewers, which is helpful for businesses and consumers. Businesses can reward reviewers with discounts, status, or rewards for positive reviews while consumers can know that the review they are reading is not from a bot but a real person who has actually interacted with the product or service they recommend. Some reviewers can even monetize their content and receive micro-payments when audiences interact with their opinions.
- Improved supply-chain management: With its ability to accurately and speedily record data that is irreversible, blockchain brings more powerful data to companies, giving them the tools to manage their supply chain and potentially mitigate losses or delays. TAAL client UNISOT — whose name stands for “universal source of truth” — enables its customers in the seafood industry to ensure that the products their customers receive are sustainable, organic, ethically sourced, and have minimal impact to the environment. UNISOT is among the latest adopters of the BSV protocol who are bringing greater efficiency and transparency to global commerce. There’s no doubt more and more businesses in a variety of industries will follow, making Black Fridays in the future even more profitable than they have been in recent years.