How Cryptocurrency could Benefit Retail Sector

Asia Blockchain Review
January 7, 2020

Secure and low-cost transactions are among the many benefits of cryptocurrencies for retailers. With the use of blockchain and cryptocurrencies, retailers no longer have to pay a third party to validate the exchange of data or money, reducing transaction fees while avoiding fraud. 

However, there is still the risk of loss or theft due to the lack of regulations as well as the anonymity of transactions.

Which Retailers Prefer Cryptocurrencies?

Retailers of high-value goods such as jewellery and electronics prefer cryptocurrencies as a payment method, as their customers prefer to stay outside the centralized banking system.

Another group of retailers that actively uses cryptocurrencies is web-based retailers or retailers with both offline and online sales channels. These retailers mostly prefer crypto-based transactions, which are more convenient for customers to pay for goods online.

Retailers that deal with foreign currencies from foreign buyers also prefer cryptocurrencies, as there is almost no risk of currency devaluation.

Challenges in Crypto Use

The lack of any systemic safeguards available for traditional payment methods is one of the obstacles in the large-scale adoption of cryptocurrencies by retailers. The entire digital money can be lost, in the event that the network is hacked, since there are no government regulations and it is often impossible to trace hacking.

As for crypto wallets, anyone with the private key of the wallet holder can access the account, which can be exposed to threats such as hacking, phishing attacks, social engineering, as well as insider fraud. 

Cryptojacking is another threat, in which a hacker hijacks a target’s processing power to mine cryptocurrency on the hacker’s behalf.

Source: www.cryptonewsz.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us