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The interconnectedness of supply chains and their associated relationships are far-flung, complex, and chaotic, creating a perfect storm for opportunistic cybercriminals to exploit. On the other hand, Ethereum is the next-generation digital currency that harnesses the power of blockchain technology to create an unbreakable and transparent accounting ledger. As a result, it's infinitely more secure than traditional financial institutions. On the other hand, there are articles that tackle the analysis of ethereum profit margin.
The below-mentioned portion discusses both sides of this equation, emphasizing why Ethereum is better suited for handling global transactions faster and more securely than any other form of money today.
Supply Chains are Highly Compartmentalized, Not Easily Traceable
Supply chains are highly compartmentalized and incur numerous touchpoints along their journey from the point of origin to the ultimate consumer. The problem is that supply chains have a long history of exploitation due to their complex nature and limited visibility into individual transactions.
Supply chain transactions can be virtually impossible to trace, mainly when they occur on the dark web. Fraudsters leverage this fraud-friendly environment to commit multi-layered attacks with clear targets — moving money into fraudulent digital wallets and then cashing it out for physical currency or goods.
Supply chain vulnerabilities are a known attack vector for cybercriminals. In the case of digital goods, such as software or digital content, supply chain issues are exacerbated because the final product is not as tangible or discoverable during initial distribution. As a result, it makes it significantly harder to trace and verify the actual origin of any given piece of merchandise.
Even if one finds a fraudulent transaction in an e-commerce vendor's transaction history, the serial number or beneficiary address may have changed after distribution. Ethereum -based smart contracts are the best way to secure the goods and services supply chain. Smart contracts will make fraud unthinkable and impossible.
In addition, e-commerce relies entirely on trust for legitimacy, reputation, and customer satisfaction. The very nature of e-commerce creates a hierarchical dynamic in which certain "trusted" centralized authorities act as gatekeepers to protect consumers from bad actors and provide an environment where everyone can feel safe transacting business.
However, this model is fundamentally flawed because it's also a prime target for cybercriminals' attacks — fraudulent vendors can easily create fake profiles complete with positive reviews to trick consumers into buying fraudulent goods by leveraging their reliance on trust as a gauge of legitimacy. Once again, the fraudsters take advantage of a supply chain vulnerability to perpetrate a scam.
Ethereum – The Only Solution for Supply Chain Integrity and Money Problems
The openness of the internet and the decentralized nature of cryptocurrency seem to be opposed to each other — especially when one considers supply chain vulnerabilities. However, there is no reason people cannot utilize cryptocurrency to create an infinitely more secure system from which consumers can purchase digital content with enhanced convenience: nearly instantaneous access anywhere in the world. Furthermore, this solution would protect users from being forced into a single "trusted" centralized authority to feel safe transacting business.
Ethereum blockchain open ledger for trackability and immutability is an excellent solution to such challenges. Ethereum, a platform offering cryptocurrency as a transactional currency, is perfect for an e-commerce platform. It will make fraud impossible and rife, and companies will significantly reduce the demand for trust.
Ethereum in e-commerce:
E-commerce with features of cryptocurrency, i.e., decentralization, transparency, accountability, and immutability, to create a transparent marketplace allows users to track transactions from vendor to beneficiary and vice versa through a single immutable ledger entry.
The e-commerce platform would be as simple to use as any other, except that once the transaction is complete, users can verify the legitimacy of their purchase at any time through the blockchain. In addition, users would be able to track their purchase history throughout its lifecycle thanks to a blockchain ledger entry that is immutable and open for all to see. Fraud would become unthinkable.
Ethereum offers just such an opportunity. For example, suppose the digital content industry were to adopt Ethereum as its global currency. In that case, vendors could implement smart contracts on their website or application to manage digital goods sales in a trustless manner — ensuring that only real customers can make actual purchases without having to worry about phishing scams or fraudulent vendors selling counterfeit goods. Furthermore, any e-commerce website or application using Ethereum as a transactional currency would be able to provide instant transparency, immutability, and accountability to all of its users.
They would not have to rely on any single centralized authority to provide this level of transparency — meaning that every transaction is entirely transparent, trackable, and immutable in the Ethereum blockchain. Additionally, customers could conveniently track their purchases throughout their lifecycle, enabling them to identify any fraudulent activity as soon as it happens.
Ethereum's use case in supply chain management, e-commerce, and inflation problems depict that ethereum is a much stronger candidate for becoming the future money than bitcoin.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.