Blockchain solutions in retail
An overview of the blockchain market in the retail sector
Starting at $0.47 billion in 2024, the market for blockchain in the retail industry is set to soar, with a projected CAGR of 52.92 percent, reaching $4.01 billion by 2029 — an almost tenfold increase in just five years.
This explosive growth is fueled by blockchain’s ability to tackle major retail challenges: enhancing transparency and trust between merchants and customers, simplifying fraud detection and prevention, and enabling seamless global digital transactions.
That’s why tech giants like IBM, Oracle, and Accenture are already exploring the adoption of blockchain in the retail market. The technology is also attracting significant government-level investments.
So, where will blockchain make an impact? Practically everywhere.
Its transparency and flexibility make it applicable across the retail landscape — from refining inventory and supply chain management to serving as a digital certificate of authenticity for high-end goods and streamlining payments. The possibilities are endless, including using smart contracts to secure agreements with manufacturers and distributors.
What Vention blockchain experts say
“Despite blockchain being actively used and discussed for nearly a decade, we're still in the early stages of global integration. Industries like retail are just beginning to explore and evaluate the benefits of technology, which means there’s minimal competition. This offers early adopters the potential for long-term profitability as they expand their market reach through blockchain.
Why are companies investing in blockchain for retail? It offers transparency, easy maintenance (especially on public networks), and seamless integration with existing software like CMS or fleet management systems.
However, blockchain comes with its own set of challenges. Operating in a unique technological domain requires experts who truly understand the ecosystem. Training in-house specialists is costly and time-consuming — it could be a valuable investment, but also high-risk. The most effective way to build this expertise is through hands-on experience in real projects where concepts are actively developed and implemented.
Investing in blockchain technology isn’t just about keeping up with trends; it’s about securing your business’s future and laying the groundwork for new opportunities and growth.”
Ilya Zaprutski
Solution Architect at Vention
Drive your retail growth and strategic decisions — leave the blockchain complexities to Vention.
Why you should consider blockchain for retail business
Blockchain solutions, powered by smart contracts, enable flexible customization and automation of business operations. Additionally, decentralization eliminates single points of failure, ensuring resilience even in unforeseen events.
Traditional payment methods can charge anywhere from 0.5 to five percent per transaction, plus a fixed rate. With blockchain platforms, you only need to cover the platform’s transaction fees.
By adopting blockchain for payments, you can expand your market reach. This isn't just another payment method — it opens access to more than 560 million people and a market valued at $2.4 trillion.
Imagine proving your products' authenticity and ethical origin to customers who care. You can make this information publicly accessible, allowing every customer to know exactly where every component of your product comes from.
Blockchain in retail: real-world applications
Retail companies are moving beyond the hype and reaping real benefits from blockchain technology. Here’s how you can start leveraging it today:
Payment method
The most common application of blockchain in the retail industry is accepting cryptocurrencies as an additional payment method. This allows crypto enthusiasts to exchange their digital assets for real-life goods and services without needing exchanges or third-party services.
Fraud prevention
Fraud through fake documents or counterfeit money results in business losses. Blockchain prevents this by enabling KYC verification and eliminating counterfeit tokens, which can’t exist on the blockchain.
Supply chain management
Integrating blockchain into retail supply chain management facilitates easy inventory tracking and verifying product authenticity and rarity. As a result, customers can trust that they are purchasing genuine products that align with their values and preferences.
Automated agreements
Integrating smart contracts automates transaction data and money transfers between retailers and suppliers. There's no need to track every partner or payment — transactions are executed automatically once all conditions are met.
Lessons from retail leaders
Looking for real-world inspiration on how to leverage blockchain in the retail sector? These industry giants have already paved the way, using blockchain technology to revolutionize their operations and set new standards.
Here are some standout examples to spark your next big move.
Carrefour
Carrefour integrated blockchain into its organic product and textile lines to meet the growing demand for transparency in the origin and production of goods, which is especially important for products labeled as organic or ethical.
The result? Each product from these lines can be publicly verified via a QR code, providing consumers with information on its origin, quality, and certifications.
Walmart Canada
Did you know that Walmart Canada manages payment invoices for 70 third-party freight carriers? That’s 500,000 shipments annually, involving over 200 data points.
And the problem wasn’t just the numbers; carriers used different information systems that couldn’t communicate with Walmart. The solution was simple: a blockchain platform serving as a single source of truth, resolving all system incompatibilities simultaneously.
Since its implementation, the system has reduced disputed invoices from 70 percent to less than one percent.
Nestlé
Like Carrefour, the Swiss food giant Nestlé invested in blockchain in retail to increase customer trust and transparency.
Nestlé partnered with OpenSC to launch the first public platform for tracking food supply chains; this platform allows users to trace a product’s origin, complete history, current location, test data, and certifications.
Challenges and solutions
Challenge
Solution
Ease of use
Despite being almost 30 years old, blockchain still lacks user-friendliness. Typically, some specialized knowledge is required to navigate these platforms.
Implement blockchain in automated scenarios where users don't need direct interaction with distributed ledger technology. Create custom, user-friendly solutions that make blockchain implementation more intuitive.
High initial costs
Developing and deploying blockchain solutions can be costly, involving expenses for custom software and specialized personnel.
Conduct a thorough cost-benefit analysis to determine if long-term savings and efficiency gains justify the initial investment. Exploring consortium models can also help distribute costs among multiple stakeholders.
Scalability issues
Blockchain networks can face scalability challenges, with slower transaction speeds and higher costs as the number of transactions increases.
Implement layer-2 scaling solutions, such as sidechains or off-chain transactions, and choose blockchain platforms that perform best in your specific case.
Interoperability with existing systems
Integrating blockchain with legacy systems and IT infrastructure can be complex and time-consuming.
Develop middleware solutions to bridge blockchain and existing systems. Thorough planning and testing are essential to ensure seamless integration and minimize disruptions.
Security and privacy concerns
Ensuring the security and privacy of sensitive data on a public or semi-public blockchain can be challenging.
Use advanced encryption techniques and privacy-focused blockchain platforms. Implement access controls and permissions to restrict data visibility and protect sensitive information.
Legal concerns
Depending on the region, retail businesses can face legal issues when handling private and public data and receiving payments via blockchain.
Consult with law, regulatory compliance, and tax specialists on utilizing blockchain in business in your location.
Our services
Blockchain consulting and strategy development
Unsure how blockchain in retail can elevate your business? We’ll help you find the right solution. From selecting platforms to planning future upgrades, our team provides all the strategic insights you need, from selecting platforms to planning future upgrades. Your part? Just implement it.
Whether you need to customize an existing blockchain for a retail solution or develop one from scratch, our blockchain experts have the know-how and can-do attitude to help. Sit back, relax, and focus on your business operations — we’ll cover the technical part.
Our smart contract developers will deliver the solution tailored to your needs. You choose the platforms and define the tasks for the smart contracts, and our team will bring them to life.
Blockchain integration services
If you’re looking for specialists to integrate blockchain into your business processes and operations, your search ends here. We don’t just incorporate blockchain into your software; we anticipate potential issues and resolve them before they even arise.
Maintenance and support
If you already have a retail blockchain app up and running, our engineers will support and upgrade it according to your business needs. Upscaling, migrating, troubleshooting, or adding new features? Consider it done.
Blockchain technologies we use
Blockchain platforms
Ethereum
Solana
Polygon
Binance SmartChain
Libraries & tools
Ethers.js
web3.js
web3.py
OpenZeppelin
Decentralized storage
IPFS
Frameworks & languages
Hardhat
Truffle
Brownie
Solidity
Vyper
Oracles & data feeds
ChainLink
Interoperability & wallets
Metamask
WalletConnect
DeFi & cryptography
DeFi protocols
cryptography
Why Vention
years in software development
years in blockchain development
senior blockchain engineers with deep integration expertise
completed projects
We help our clients comply with PCI DSS, GDPR, SOX, and other relevant regulations
End-to-End support
Advanced integrations with AI, big data, IoT, and other forefront technologies
An ISO 27001-certified company
FAQs
What is the future of blockchain in the retail sector?
The future of blockchain in retail largely depends on how retail businesses and their customers embrace it. As a versatile tool, blockchain offers significant advantages over traditional systems, particularly in its ability to support internal operations and customer-facing activities without needing multiple, potentially incompatible systems.
Additionally, the growing adoption of crypto payments unlocks new markets, enabling swift and secure intercontinental transactions.
How can IoT be used with blockchain in retail?
IoT devices — such as sensors and RFID tags — can track the movement and condition of goods throughout the supply chain, and this data can be recorded immutably on a blockchain. This integration improves real-time inventory management, ensures optimal storage conditions for perishable goods, and facilitates automated, secure payment systems.
Plus, combining IoT with blockchain can improve the customer experience by offering personalized services and ensuring data privacy. Retailers can also combat counterfeiting by verifying product authenticity through IoT-enabled tags and automating processes with smart contracts triggered by IoT sensors. This integration boosts operational efficiency and builds consumer trust and satisfaction by enhancing transparency and security.
Are there any regulatory concerns with using blockchain in retail?
The regulatory landscape for blockchain is still evolving and can vary by region. Retailers must stay informed about local regulations and ensure compliance, particularly in data privacy and financial transactions. Partnering with legal experts and maintaining communication with regulators can help navigate these challenges effectively.