Meet DeCom, The Decentralized eCommerce 3 Stack

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DAOs (Decentralized Autonomous Organizations), which enable individuals to pool their resources and skills to create new self-governed projects, are gaining traction. According to pixelplex, as of January 2023 the total number of DAOs in existence reached 10992, three times the number recorded in 2022.

What is the unique appeal of economic self-government as expressed in DAOs and how can it impact retail? Let’s explore the meaning of decentralization for online shopping. Philosophically, one might say that decentralization is the expression of democracy in its purest form. Rather than allowing powerful third parties and giant retailers to control processes, data and eCommerce, it enables all those partaking in a given project an equal say.

There are many benefits to be gained on several levels:

• Small and medium eCommerce businesses which adopt decentralization will finally have access to data, processes and tools that are currently controlled by giant retailers. This means that they will be able to anticipate their customers’ specific needs and accommodate them accordingly.
• Customers will definitely profit from decentralization; competition will increase, prices will drop and more goods will be available at lower cost.
• The market will be stimulated, sales will increase, and more shoppers will step up.
• Decentralization offers a higher degree of security due to greater transparency and traceability. On blockchain, everything is documented and can never be deleted. No purchase can be denied as it is clearly documented.
• Smart contracts will serve as a form of legal agreement between retail businesses and consumers. There will be less paperwork, less fine print, less hassle and much more clarity.
• Purchasers will be able to keep their shopping habits and personal information private rather than leave it in the hands of controlling retailers. This means that they can determine points of use as desired. Retailers who reject this open system will find themselves left along the wayside.
  

How will DeCentralized eCommerce Work?

The eCommerce 3.0 stack is based on several supportive tiers which underpin the overall structure.

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Tier 1

Blockchain and Systems

At the foundation is the Blockchain Ledger Technology and related systems including an assortment of chains, nodes, bridges, operating systems, smart contract services and decentralized file systems (IPFS). The functionality of all of the decentralized eCommerce services and players is based on these technologies.

Tier 2

Infrastructure and Bridges

This tier adds the crucial layer of infrastructure services and processes built upon the foundation of blockchain technology. These components include practical applications such as inventory storage, smart contract solutions, performance platforms, DAO platforms, wallet management, custody offerings, migrations, operability and validators. This infrastructure will serve the enablers when they build their Web3 store.

Tier 3

Platforms for Web3 Enablers

Web3 enablers are players who utilize the technology in various ways. They require SaaS and BaaS platforms to perform eCommerce activities. These new platforms will enable rapid and seamless management of a wide variety of functions including payment processing, authentication. customer services, refunds, gifting, member club management, fee management royalties, and more.

Tier 4

eCommerce dStores and dApps

The top level of the stack involves the Points of Sale (POS) and offerings. Here is where practical applications enter the picture. Based on the services and products developed in the previous tiers, Web3 stores, eCommerce websites, applications and games will offer global users and avatars virtual items and services for various scenarios in the metaverse. Web3 will also involve the development of new marketplaces, decentralized social commerce, new dApps, store platforms and more.

It is clear that the entire ecosystem of eCommerce and retail stands to gain a great deal from decentralization as it facilitates greater flexibility and privacy, as well as transparency, operational ease, and increased security. It in fact offers a robust new foundation for eCommerce enterprises, retailers, cross-border sales, payment processing, and other areas.

Admittedly, the full extent of potential blockchain-based applications is yet to be explored. Business leaders and entrepreneurs worldwide are already working on unique ways to utilize the qualities of decentralization and replace outdated methodologies.

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Summary

There are those who are still deterred by the lack of regulatory control and legal restrictions in connection to blockchain. However, we at Giftoin believe that it is only a matter of time until the required regulation is passed and Web3 will gain its proper place. Blockchain has huge potential to replace outdated practices, develop innovative infrastructures, and create a vibrant decentralized utopia. Let’s welcome it!

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