People from the retail industry will tend to agree with the fact that the development of this sector has experienced a journey like this. In 1852, the world’s first department store, LeBon Marché, opened in Paris, the emergence of the department store triggered the first change in the retail industry. Since then, the rise of chain stores and the birth of supermarkets have stimulated the 2nd and 3rd revolution towards the retail industry. But these are just history that people have never experienced before. In fact, the current generation is more familiar with the 4th revolution on the rising of E-commerce, which has subverted the entire retail industry. This history of generations often makes it difficult to understand the 5th retail revolution caused by blockchain. Therefore, in order to better understand the transition of the 4th retail e-commerce to the 5th retail blockchain revolution, we will need to understand the answer to the question of “Where does the vitality of distributed e-commerce come from?”
The Challenging Issue of Centralized E-commerce
To give the answer to the question “Where is the vitality of the distributed e-commerce?”, We will have to return to the fourth revolution in the retail industry. After the rise of e-commerce and several evolutions, the final pattern formed is that traditional e-commerce giants like Taobao and JD.com are occupying most of the market. But a detailed analysis of these e-commerce platforms will be revealed that they are not only centralized e-commerce but also an e-commerce portal. The reason is that their ecology and logic are pretty like those web portals that went popular before, these are all the early manifestations of the internet in various fields.
The web portal has once dominated the era of web 1.0, and Its centralized architectural design generates network flows, centralized income, and the low level of activity induces by the organizational form. Similarly, the centralized e-commerce has not escaped all kinds of odd circles such as the increase of customer cost caused by the concept of “The one who pays more, gets it”. On top of that, a single inefficient incentive mechanism has also made it difficult for customers to precipitate, the relative occlusion of organizational structure can’t open the entire value ecology, lack of supply chain supervision leading to a series of defects such as recurring product quality issues in which leading the manufacturers and consumers involved to change their needs and expectations. These flaws caused the entire internet to be upgraded like web 3.0. Centralized e-commerce also has the potential to transform to distributed e-commerce.
The characteristics of distributed e-commerce
Currently, the development of distributed e-commerce is still in its infancy, and the concept of distributed e-commerce has different definitions. As the world’s first distributed e-commerce network, BitCherry review towards the characteristics of distributed e-commerce networks are as followed: support multiple payment methods for platform as well as traditional transaction, distributed sharing mechanism as the evidence of token incentives, distributed open platform for multi-industries and multi-communities access, Operational nodes throughout the world, decentralized distributed business organization, and the community has self-propagating properties.
Among them, multiple payment methods refer to consumers purchasing goods and services in the platform. The choices of payment differ from platform token to the traditional payment method. In this case, the distributed sharing mechanism of token incentive requires the platform to establish a complete sharing system whereby each party involved in the platform can benefit from platform operations through revenue sharing as well. Distributed open platform has access into multiple industries and communities, which made BitCherry distributed e-commerce to have the accessibility to enter e-commerce related business sector in various industries in the future. With the vision of creating open and integrated e-commerce, the building of operations nodes around the world, BitCherry will eventually achieve their international operations movement, building global operations through a layout of the global operating node. In addition, decentralized distributed e-commerce will require the global operating node of the platform ecosystem to be a decentralized business organization. The evaluation model of traditional e-commerce has information validity, weak authenticity, and can’t cater to user needs. Meanwhile, BitCherry platform comes with strong community attributes, facilitate the sharing of user interaction after purchasing, and could accelerate the circulation of goods and token.
From these reviews by BitCherry towards distributed e-commerce network, it is not difficult for us to discover the vitality of a distributed e-commerce.
Where does the vitality of distributed e-commerce come from?
From a global perspective, the centralized platform faces a monopoly of resources, which in turn leads to a declined of the participant’s enthusiasm, causing the deterioration of the internet ecology. Bank of America Merrill Lynch, Bloomberg and Morgan Stanley analysts have recently warned that as the price of online traffic has soared, users have been acquired by means of high-cost investment, which caused a large number of internet companies to enter the stage of cash burn, and the internet is currently entering the bottleneck period of the development. Thus, the most eager issue that BitCherry distributed e-commerce trying to solve is the issues of traffic decentralization.
To solve this issue, we must go back to the blockchain technology itself. Blockchain is not just pure technology, but it is also an idea. Through the community, participants reached a consensus and established a technical belief. The bad mechanism in the real world can lead to distraction and those who make contributions in the Internet world may only get praise, comment or word of mouth. However, in the world of blockchains, the saying of “one good turn deserves another” is evident through the token whereas it is directly paid to the other party, and contributors are more willing to make more contributions after getting the actual bonus. In BitCherry ecology, through the consumption-mining mechanism, enhancing the sharing of interactive desires after purchasing, a community norm of “all for one, one for all” was established and eventually became the basis for breaking the monopoly of traffic.
With this foundation as a guarantee, the potential of distributed e-commerce networks is being triggered. The Internet has transformed the entire planet into a global village, and distributed e-commerce has also extended the trading boundaries of e-commerce to the world. BitCherry distributed e-commerce network is to expand their business scope to Singapore, Indonesia, Vietnam and other Southeast Asian countries, and to more countries in South Asia, European, and America in the future. Through this way, the operator nodes will spread across the world, reaching varies industries and community access, introducing a variety of payment methods, and eventually make BitCherry ecology becoming increasingly powerful.
After all, it can be seen that the vitality of distributed e-commerce comes from its internal mechanism. At the same time, under the enhancement of this internal mechanism and through the expansion of functions, distributed e-commerce finally embarks on the road to prosperity.