Can bitcoin change online commerce?

Netease Technology News July 3 news, the foreign media recently wrote that several e-commerce providers, including NewEgg bitcoin payments continue to support the digital currency with the support of Dish Network, the prospects seem more bright. With instant, secure, no-fee and other advantages over traditional trading methods, it will change online commerce.

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Bitcoin has been steadily advancing its mainstreaming process in the past six months. Overstock, Lord & Taylor, TigerDirect, Virgin Galactic, NewEgg and other companies have accepted Bitcoin payments. After Dish Network announced it would accept bitcoin payments, the future of the digital currency looks even brighter.

eBayCEO John Donahoe has said that bitcoin is not just exciting, it will also play an "important role" in PayPal's future. Last year, the app that once blocked the use of Bitcoin wallets was beginning to relax its control over the digital currency. Even Amazon, which claimed to be bound by bitcoin, recently won a bitcoin-related cloud computing patent.

All this will help Bitcoin restore its reputation. Earlier this year, bitcoin pioneer Charlie Shrem was arrested for money laundering and Tokyo's Bitcoin trading platform Mt. Gox collapsed to file for bankruptcy protection. As a result, the prospect of the virtual currency cast a shadow over it. However, bitcoin can solve the trust problem, and change the online business?

What is Bitcoin?

Bitcoin is a digital currency that allows trading without a bank or other intermediary. Transactions from consumer wallets are handled, verified and publicly recorded by so-called bitcoin fans. Trading does not generate any fees.

People can buy bitcoin, store them in digital wallets, and buy goods or services through the Bitcoin trading platform Coinbase or Bitpay. However, because they are not regulated, you can not secure your "wallet." In addition, only your wallet ID is stored in the common log, excluding your real name. This anonymity makes bitcoin a good payment option for illegal activities.

Change online business?

Despite the risks, bitcoin is a very interesting and dynamic technology that will surely change the way eCommerce works in the future.

Ofir Beigel, co-founder of Bitcoin Guide Website 99Bitcoins, said: "Bitcoin is slowly penetrating into the e-commerce space as it is a new and viable, even 'sexy' solution that includes Overstock, New Many companies, including Egg and Tiger Direct, have come to understand this and are using Bitcoins to attract a lot of customers. "

Instant trading

In today's fast-paced society, we want everything to be done instantly. Bitcoin obviously fits this requirement. Bitcoin transactions can be done almost instantaneously, in stark contrast to traditional payment transactions that often take hours, days or weeks to pass.

Bitcoin is also expected to speed up the online trading process. In the traditional model, businesses have to wait for some time until the payment is completed, will be shipped. With bitcoin payments, they can arrange shipping right away. For example, while Amazon is fast shipping, think for a moment about how fast it can deliver goods if it's a direct instant payment.

Simplify overseas transactions

For people living in developed countries, it is not hard to find a bank outlet or a service like PayPal. But it is another thing for people living in developing countries, who are at very high risk. But the advent of Bitcoin has changed the situation.

People are no longer afraid to deal with financial institutions in specific countries or accept local currencies. Because Bitcoin is a P2P service that allows money to reach its destination safely. This should help to facilitate business with developing countries so that marketers in those countries can finally participate in online commerce.

In the view of Bitpay co-founder and CEO Tony Gallippi, bitcoin will be everywhere in a few years. This technology is very powerful and is likely to be the basis for all types of deals, be they business, personal or government-sponsored, not just online shopping. Since it does not generate fees, fast and secure, scalable, how can you unmoved it?

Bitcoin is also expected to end the era of currency exchange or overseas transaction fees. Because it is a universal currency, trading with people or businesses overseas is becoming easier and more efficient.

No fee

As mentioned above, bitcoin enables businesses in different countries to dispense with the same fees and charges as traditional transactions.

Ordinary credit card transactions must go through layers of channels, such as actual credit card networks and payment gateways, so high fees are inevitable. Bitcoin trading does not involve these brokers, so users do not have to worry about fees and debit issues.

establish trust

Unlike traditional banks, bitcoin is user-first. Banks may object to this, but no financial institution is in fact able to give people full control of the capital as Bitcoin does. You can send and receive money immediately. More importantly, this allows you to do what you want without having to follow the rules set by banks or other financial services.

In addition, bitcoin is more reliable than frequently attacked banks such as Target bank card stolen information. Bitcoin is safe, though not guaranteed by the Federal Deposit Insurance Corporation (FDIC). For example, you can back up the digital keys to your wallet, encrypt keys, and even put your bitcoin in a "cold store" - offline to store bitcoin keys.

You can also take advantage of the multitenant signature feature to prevent theft, which means that organizations need to get approval from three out of five members to reap funds. The same bitcoin can only be used once, and everything is recorded in the public ledger, which should reduce the incidence of fraud and embezzlement.

Another security benefit is that people can make a one-time shopping by creating a new bitcoin address. This means that all your other financial information will not be disclosed even if the company you visit is black.

Stimulate innovation

Of course, Bitcoin also has its drawbacks and risks. However, this concept inspired a lot of entrepreneurs. Bitcoin is an open source ecosystem, so its model can be improved for future products, services and applications.

For example, Bitcoin is not the only virtual currency. Dogecoin, Litecoin, Ripple, Peercoin, Mastercoin and other currencies are likely to improve or repair Bitcoin-related issues in the future. As the currency becomes more and more popular, the deals will become faster, easier and more efficient. In short, it will change the banking and financial system.

More interestingly, Bitcoin also has potential at some level beyond financial transactions for other innovations. Take the digital key for example, the technology can be applied to businesses that involve more than just money transactions. For example, bitcoin can help solve copyright issues because media files can be legally transmitted between users with the help of bitcoin addresses and encrypted passwords. Private digital keys can also be used for home security, time-stamping contract files, and even for creating decentralized social media networks. (Hao Hui)