Forbes: Block Chain and Retail: Four Opportunities


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nnThe development of digital technology for different countries to pay the market there is a big difference, such as the United States and China’s small payment differences to the overall market is significantly different. And thus also to the financial service coverage caused a difference. This is good at using block-chain technology, can greatly improve the payment environment, so that more people benefit, to provide more opportunities for retailers.n
nnTranslation: Annie_Xun
nBitcoin, block chain, distributed books, encrypted currency, you may almost forget the Internet of Things and big data, and the way people talk about block chains this time. The development of this technology is carried out at an alarming rate; if you were a retailer who had previously neglected the technology and wanted to pay attention later, then it was time.n
nAlthough the chain chain will not immediately change the retail industry, but the innovation, investment participants and the number of changes sufficient to attract the attention of retailers, because they do not know how it will affect their industry.n
nI do not want to define the block chain or introduce its principles, because there are many references to these. But whether or not you understand its principles, we must know the following four major changes in order to achieve the results of the time far and near arrangement.n
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nConsumers payn
nWhen the people around you start talking about buying Bitcoin, it can be said that it has caused the attention of ordinary consumers. Encrypted currency has the potential to solve consumer financial problems. In an interview with McKinsey, Liana Douillet Guzman, senior vice president of corporate development at Blockchain, said 2.5 billion people are currently outside the financial system, including 1/12 Americans. This part of the people’s high transaction costs, especially immigrants to his hometown money transfer. Douillet Guzman takes $ 200 for someone to transfer $ 200 to the Philippines, which can cost up to $ 12 for traditional transactions, and only a few cents through a currency transfer.n
nHigh transaction costs limit market development. Its economic principles are very basic, high-quality goods or service needs will be high prices. Comparison of China and the United States mobile payment: Hillhouse Captial and Kleiner Perkins joint survey found that an American credit card transaction costs more than 200 basis points, and WeChat and Alipay less than 50 basis points. China’s mobile payment market (including small payments) reached US $ 5 trillion in 2016, compared with US $ 112 billion in the United States. One of the reasons why Bitcoin and other encrypted currencies are so hot is that as long as the encrypted currency can maintain a “low” transaction, they can provide the opportunity to avoid the “expensive” payment model in favor of a cheaper approach.n
nTherefore, from the consumer point of view, the demand for encrypted money is very large, but the current process of creating a digital wallet, access to encrypted currency exchanges, buy encrypted currency, etc. are very complex. Is there a way to simplify it? The Singapore start-up company TenX connects its digital currency wallet to the Visa wallet, allowing consumers to spend money with Visa. BitPay provides bit-money payment support to the point of sale so that retailers can accept encrypted currency payments. Some retailers have already begun to pay royal currency payments, including the Russian Burger King.n
nBut the challenge is still a lot, the biggest of which is the encrypted currency price fluctuations too. The rumors about the founder of the ethertail also drove the currency market to $ 4 billion. Is there a “cheap” transaction fee that makes the encrypted currency so attractive? Bitcoal trading fees increased from five cents two years ago to five dollars this year. Outside there are different opinions, Bitcoin may fall in the next decade, burned or reached a single $ 100,000 price.n
nIt must be remembered that the fluctuation is part of the technology-driven. August 1 Bitcoin went through bifurcation, split into Bitcoin and Bitcoin Cash (BCC). The reason is that in the block chain to add a larger block of the attempt, in theory, this can make the transaction processing faster. But the value of BCC is far less than Bitcoin, the market is not mobile. In other words, the exchange to adjust technical support, began to accept BCC, the price may fall further.n
nPart of the encrypted money market security is not guaranteed. Last month, one of South Korea’s largest exchanges was attacked. Thirty thousand accounts are black, and these accounts do not have FDIC deposit insurance. The Exchange undertakes to repay the account holder approximately $ 85 and increase or decrease according to the amount of the account. This news so that ordinary consumers to hold and use the encrypted currency is not assured.n
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nProduct Category n
nThe details of this aspect are cumbersome. Block chain because it is distributed books, an increase of the difficulty of fraud. So that the currency is attractive. The block chain makes it possible to verify the legitimacy of any product category in the supply chain.n
nIts application, including so that Hermes, LV and other fake real trouble more difficult. Making the labeling of origin and product safety tracking easier, such as food supply chain, block chain can record the supply chain in the product cycle of each circulation. Can also be used to ensure the authenticity of a unique product, such as art or super bowl tickets. Can also be used to ensure the confidence of the secondary market.n
nMany of the start-up companies and software solutions that target these use cases make it possible to be the most developed chain of chains in the retail industry.n
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nB2B paymentn
nOne of the biggest challenges of encrypting money is how its monetary status is recognized. To this end, banks must be willing to hold encrypted currency deposits and participate in encrypted currency and cash transactions. At present, banks are testing block-chain technology, not just for deposits and transactions. The world’s 28 banks are currently joining SWIFT’s leading chain-chain concept to determine whether they can use it for cross-border settlement.n
nIn addition to the banking sector, the chain chain often appears as a “smart contract”, an auto-escalating private chain that records all changes in the contract, whether it be a buyer, a seller, or a third-party contract. The 18 affiliates of the R3 affiliate currently assess whether the block chain can replace traditional L / C.n
nFor retailers, once the end of the concept of proof stage, which means less paper flow, digital information exchange more cross-border multi-party transactions more smoothly.n
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nDigital advertisingn
nDigital advertising in the field of lack of transparency, causing harm to the industry. Some from the blind market bids, the market to buyers and sellers at the expense of the use of blind bidding.n
nSome from the rise of robots, they can replace people, people can not see the time for the demand side of the platform to bring advertising payments. Some from the form of advertising in the form of advertising buyers, and the content associated with the site actually hurt the brand image.n
nLarge digital organizations, such as the US Interactive Advertising Bureau test, use block-chain technology to solve digital advertising problems.n
nThe problem with advertising technology is speed. Block chain is very safe, but the speed is not high, can not meet the digital market real market. Although the concept of proof and a number of initial projects a lot, but the field is not like the supply chain tracking and B2B payment areas, the solution is not much. So although the future is still very far away, the impact on the retail industry is still great.n
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nRetailer: Please note the block chainn
nFor retailers, at least block chains will continue to exist. At present, consumers and business applications are also a lot of development projects, it is time to focus on the block chain to see how it will be the next development.n

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