Over the last few years, blockchain technology has changed how we transact, store data and consequently how we carry out economic activities, like banking, selling, international trade, asset creation and so on and so forth. It has also influenced how we think as regards inventing solutions, especially financial solutions; hence, more people are beginning to realize that the only real thing about money is it’s symbolic power.
In 2020 we’ve had an outburst in the growth of Decentralized Finance (DeFi) solutions, because the hitherto complex solution of traditional finance can be built on a blockchain, and bank processes to access finance products are being replaced by Smart Contracts.
If this innovative solution through blockchain could happen for Finance, how about other sectors?
The DeFi solution has shown how useful Smart Contracts are for building financial solutions. This is because the primary use case of the Blockchain Technology is to maintain the integrity of data; whether that data be records of transactions or lines of programmable codes that self execute, the important thing is that it’s integrity i.e memory storage, records and more be immutable, secure and distributed across the network, making it possible for digital assets to exist only in one place at a time thereby, solving the problem of double-spending.
DeFi has shown us that financial solutions can be built using Smart Contracts on a blockchain network, I think that the same thing can happen for another industry — the ecommerce industry.
How? – By Building E-commerce Solutions through the Algorand Blockchain.
ALGORAND’S LATEST FUNDAMENTAL SHIFT IN SMART CONTRACTS
Algorand has unlocked a potential in blockchain with powerful protocol purpose-built for frictionless exchange in their latest addition of STATEFUL SMART CONTRACT functionality integrated into Layer-1.
Adding this to existing Algorand solutions like stateless smart contracts, Atomic transfers and Algorand Standard Assets; scalable DeFi and dApp solutions that can execute to billions of users with tens of millions in daily transactions with minuscule transaction fees are made possible through the Algorand Blockchain.
In contrast to millennial blockchains that were forked, the Algorand Blockchain was designed from scratch and has broken the restrictive barrier around scalability, decentralization and security, thereby solving the problem of high transaction fees and transaction speed.
You can read more about the latest update on Algorand’s stateless smart contract.
A BRIEF ON ALGORAND SMART CONTRACT STRUCTURE
The Algorand blockchain provides the solution that enables Smart Contracts are:
- Fast – 1,000 TPS, typically executes like every other transaction
- Cheap and – Transaction fees at a mili Algo 0.001 Algo
- Powerful – Speed, cheap without slowing down the network
to be built, run and executed without slowing down the network or costing so much in fees.
Smart Contracts are digital contracts that self-execute when pre-conditioned activities are met by the parties involved on the network.
Think of Smart Contracts like your POS machine’s relationship with your ATM card. Lines of codes are pre programmed and run to connect your ATM card to a centralized network when it’s slotted in, and for transactions to be executed you complete pre-conditioned activity which is inputting your pin. Smart Contracts are built on a blockchain network to maintain and protect their integrity and execution.
Smart Contracts are built to enable you to exchange anything of value without a middleman or centralized bodies like exchanges.
Algorand uses the Transaction Execution Approval Language (TEAL) to write both Stateless and Stateful smart contracts which is a development on the complex Hashed Time Lock Cont for writing Smart Contracts.
This is useful because it enables developer’s build Smart Contracts designed to suit their rule structures, and executing pathways which offer a consistent developer experience. Algorand is a programmable blockchain and is currently building a community of vibrant developers and providing structures that ease enterprise adoptions and solution creation.
SMART CONTRACTS AND DECENTRALIZED COMMERCE
We can bring decentralization to the e-commerce sector by replacing the middle men with Algorand’s TEAL written smart contracts and creating an ecosystem for trade using either a CBDC tailored to the user’s country, a stable coin or make payments via Algos.
Smart contracts that execute when a buyer has indicated interest to purchase a certain product that a seller has put up for display.
Imagine Nigeria (I’m using Nigeria as an example cause I’m a Nigerian, you can imagine in your country’s currency too) has the digital NGN built on the Algorand Blockchain, since CBDC is one of Algorand’s use cases.
Imagine a decentralized e-commerce platform built on the Algorand blockchain that enables traders with various goods to display their goods for buyers who visit the platform to develop an interest and buy them.
This platform has only 2 modes of payment, Algos or digital NGN, which can be funded and withdrawable through the Algorand wallet or any of the wallet like Blockchain wallet that Algorand is on, wallets can also be imported to the e-commerce platform to receive and transfer payments.
This would be possible through the ASA Layer 1 Smart Contracts and also a new security feature (Rekeying) that Algorand will be releasing soon.
Imagine that a trader’s display of goods or services is a part of a smart contract that pre-conditions that if a seller clicks the “buy” button, after examining the specs of the product, the price amount leaves the buyer’s wallet immediately to the seller’s wallet and shipping is scheduled automatically to execute because of the Smart Contract.
I CALL THIS DeCom – DECENTRALIZED COMMERCE
These are the solutions DeCom presents through the Algorand Blockchain;
- Replace e-commerce middle men with Smart Contracts
- Ease of payment for goods and services
- Encouraging mass adoption of crypto solutions because of ease of pay for services and goods that range from various types, class, cost etc.
- Reduction of human error in cost of operating centralized e-commerce platforms.
- Front International Trade
- Provide trustless transactions
- Provides Ease of sale of services across countries and borders.
- Ease of auctioning of goods across borders
I think Decentralized E-Commerce (DeCom) will be adopted sooner than I say Algorand!
My name is Karla Obakpolor and I am an Algorand Ambassador.
If you’d like to learn more about Algorand, please register for my webinar holding by 12noon GMT+1 on the 28th of August 2020.
Click this link to Register Now, there will be giveaways in Algos at the end of the Webinar.
You’ll need to Create an account on Algorand to join our community first before you can register for the webinar.
So please create an account and register here.