FreeMarketToken(FMT) - An Analysis of Ecryptostore

FMT Website

For the sake of context, let’s take a step back for a moment and consider the trajectory our civilization is currently on - where are we coming from and where are we going? Consider (briefly) the pivotal moments in human history that have led us to where we are today. Things like the agricultural revolution, the printing press, and the internet changed the course of human existence undoubtedly. They have led us to the age of information and automation, where billions of people are technologically connected and able to communicate and do business with one another.

Commerce has been a massive part of the evolution of our society. If we narrow the conversation down to commerce and look at the way it’s evolved over the centuries, we can see how technology is a major driving factor in its expansion. The effects have been exponential. Buying and selling online is quickly becoming an everyday occurrence for hundreds of millions of people worldwide, and those numbers are projected to continue to expand as the infrastructure is built out and solidified.

eCommerce

It’s safe to say the e-commerce industry is here to stay, and it’s clear we’ve got a few marketplaces that are taking a lion’s share of the pie. This is the case with most industries; you’ll see a company that was both early to the party and executed in a way that’s congruent with the free market. For instance, take a look at the numbers in the graphic below. You’ve probably heard of at least 3 of these companies, and it’s no surprise that Amazon is leagues ahead of the rest.

These are the revenues recorded in 2016, and according to a study done by eMarketer.com, the projections are pointing ‘upwards and to the left’ (as seen in the chart below). As the technology responsible for the internet’s infrastructure continues to develop at an increasingly rapid rate (in accordance with Moore’s Law) it will become easier and easier for any human, regardless of income level or geographical location, to have access to a global collection of goods and services at the swipe of a finger.

Ecryptostore - eCommerce and Cryptocurrency Combined

Considering everything happening within commerce - in the world at large - we’re looking at some massive societal changes. We’re continuing down a path that is egalitarian in nature; one that allows for a larger and larger portion of the global population to access a “middle-class lifestyle”. As is usually the case, money is at the heart of the equation. So far, we’ve only spoken about the evolution of commerce. We haven’t even touched on the evolution of currency!

There are plenty of articles and videos online that can explain what cryptocurrency is and what blockchain can do, so we’ll focus on how it corresponds with e-commerce. The two are an obvious match. Blockchain will play a significant role in the expansion of the internet's infrastructure.

Taking a look at online marketplaces like Amazon and eBay, the general idea behind their creation was to take the retail business model, put it online, and generate revenue. Ecryptostorewill be using similar ingredients but in a different sequence. They aim to utilize cryptocurrencies within the eCommerce business model, tapping into the market by serving the segment of the population that prefer to use cryptocurrencies. Check out the problems listed below (taken directly from the FMT Whitepaper).

• Provide a safe environment to transact with cryptocurrency with minimal risk of fraud.
• Merchants can avoid the exposure of market price fluctuation and processing delay times associated with typical crypto escrow services.
• Provide tax invoice proving the purchase of goods in a personal use-case.
• Avoids the hassle of engaging web-developers to build an e-commerce store. Simple to set up a storefront.
• Merchant storefronts are conglomerated on one single platform which attracts a wider audience base.
• Accept cryptocurrency locally or from anywhere

These are some specific problems Ecryptostore plans to solve, which will allow them to capture a significant portion of the e-commerce market if they get the timing and execution right. When I first started digging into the Ecryptostore idea, the first major question I had was, “Wouldn't it be easier for Amazon to accept Bitcoin?” and the immediate answer I came up with was, “Of course.” But after diving into the whitepaper a little bit deeper I realized the answer wasn’t so straightforward.

The adoption of cryptocurrency has increased rapidly since its introduction in 2009, back when you could have bought 10,000 BTC for $1. However, this rapid increase in price has outpaced its rate of adoption in the global economy. Governments are large, slow-moving machines and large enterprises like Amazon and Alibaba (who became successful without cryptocurrency) either aren’t able to adopt cryptocurrencies as payment yet or don’t want to adopt cryptocurrency as payment yet, especially since they haven’t been fully processed (read: regulated) by the government. There are also 'existing payment gateway partnerships’ that decrease ‘corporate agility’ and contribute to the adaptive delay of cryptocurrencies in these established marketplaces.

This delay in adoption leaves enough time for a smaller, more nimble company like Ecryptostore to enter the marketplace and capture a meaningful portion of e-commerce revenue. As the government’s stance on cryptocurrency becomes more clear, blockchain technology continues to present itself as the superior payment option, and volatility begins to subside, we can expect to see larger enterprises slowly accepting cryptocurrencies as payment.

In articles to come, I’ll dive into the team behind Ecryptostore and FMT, the project’s roadmap, how FMT will power Ecryptostore, and more. If anything you’ve read so far seems unclear, or you think I could’ve done a better job of explaining, feel free to leave a comment below. I’ll do my best to respond and provide more clarity.

Disclaimer: I earn FMT tokens to discuss with and educate others about FMT and Ecryptostore, and you can too! Anyone can join from now until August 15th. Let’s get the conversation started about buying and selling goods with crypto! Click here to join. Any quotations above cite the whitepaper directly. This is not financial advice, and you should do your own research before participating in any sort of investment.

Links:
Bounty Thread
FMT Website
FMT Whitepaper
Ecryptostore
Author Account