In today’s competitive era, integrating robust Point of Sale (POS) solutions into retail business allows businesses to improve payment services, inventory operations, and customer service.
However, the traditional POS process is complex. Involving multiple entities complicates tax, supply chain, and billing. So, there is a need to integrate the traditional pos system with modern technologies such as blockchain to ensure security.
The current pos system includes the following components:
- PC or tablet system for ordering /
- Barcode reader to scan products.
- A software that can maintain and store sales data
- Credit / Debit Card Slider
Connecting the POS to a distributed network (also known as blockchain) eliminates the need for middlemen and allows the use of smart contracts to increase the reliability of the system.
From inventory management to sales and tax accounts to automated payments using customer data, the blockchain can simplify POS securely and efficiently.
Here’s how a Blockchain-based robust POS solution can make a difference:
Data storage on the blockchain: Smart contracts process incoming data and take steps to ensure that taxes, regulations, and compliance are maintained before transactions occur.
Blockchain gives all stakeholders, including product suppliers, vendors, buyers, regulators, and other authorities, transparent access to the immutable data stored in distributed ledgers.
For example, if a restaurant owner needs to purchase vegetables to cook, the blockchain can help verify whether the vegetables were purchased from an authorized vendor. Blockchain also provides transparency by giving customers access to past invoices at all times.
Pay in cryptocurrency: Payments are automatically deducted through the customer’s crypto wallet at the time of ordering and sent to the business owner’s wallet. Transaction details are stored on the blockchain and can be used later for tax and auditing purposes.
Quick check: Lawyers participating in the blockchain POS ecosystem as auditors/authorities have direct access to time-stamped records related to taxes and payments. You may be able to use smart contracts to quickly perform annual or quarterly audits.
Now let’s see the benefits that the blockchain-based pos system bring to the various stakeholders of the system.
Benefits for sellers
- By adding regulations to smart contracts, the blockchain can reduce costs by eliminating the need for middlemen such as accountants, consultants, and auditors.
- Blockchain allows headquarters to perform financial audits on a monthly, quarterly or yearly basis without any problems. Therefore, tax returns can be filed quickly.
- With quick access to information about frequently purchased items from the blockchain, companies can efficiently manage their inventory.
Benefits to customers
- Clients can track their monthly expenditures by tracking information that is always available.
- Blockchain allows buyers to pay bills automatically via cryptocurrency wallets.
- Everything on the blockchain is stored in a verifiable and transparent manner so that customers can also track information about the origin of their products.
Conclusion: POS Smart contracts based on blockchain: reduce complexityGovernment authorities can put in place regulations on smart contracts to ensure that taxes are properly applied. Smart contracts also ensure that suppliers of raw materials meet required quality standards. The smart contract built into the crypto wallet allows shoppers to enable take-away payments. Once the customer pays the invoice, the smart contract updates the status of the invoice to “paid” in the ledger. By integrating the pos system with Blockchain, you can reduce various types of taxes, bills, and supply chain complexities.