Blockchain For Startups: The Secret to High Efficiency?
To start with, blockchain technology is as powerful as the Internet itself from the time when it was deemed to be overhyped to now when it has become an important part of a number of industries, banks, and governments.
According to Grand View Research, the global blockchain technology market size was valued at USD 5.92 billion in 2021 and is expected to grow exponentially at 85.9% from 2022 to 2030.
Moreover, blockchain technology has made a prominent place in a number of processes on a very high level and has found associations among a number of big brands like – Walmart, IBM, Oracle and more.
Our intent today is to make blockchain a technology occurrence that can be implemented on mass scales by businesses and industries of all sizes and across all categories.
While there have already been several use cases of Blockchain in Enterprise setup, it is the startups that need to reform with the power of blockchain.
This article is for you to get acquainted with the topics like what is blockchain, how blockchain works for startups, how to create a blockchain for startups, and how it can be used to not just make your business efficient but also mark it as a brand that is highly innovative.
We will help you identify the ways blockchain can impact and make your processes a lot easier. And in case you wish to dive deep into the technology’s ABC, head on to our handbook on Entrepreneur’s Guide to Blockchain.
Now without further delay, let’s discuss how blockchain can help your startup operations run more efficiently but before that let’s dive deeper into the detailed concept of blockchain. So, let’s get started!
What is Blockchain?
A blockchain is a database that allows safe, secure, transparent and tamper-proof data storage. This makes it an ideal platform for managing transactions, contracts, and other digital records. In fact, many believe that blockchain will eventually replace traditional databases altogether and has a lot of potential applications for businesses, including startups and tech giants as well.
If you are a budding entrepreneur with a blockchain startup idea to start a new business you must be having several questions in your mind like how blockchain startups work, how do I create a blockchain startup, how to invest in blockchain startups, how do blockchain startups make money and more.
So in order to have answers to all your queries you need to dive deeper into the blog post. To your surprise, you will come to know that blockchain will change every industry in which data can be stored or transactions can be recorded, including retail, finance, banking, energy, healthcare, real estate, supply chain, and more.
Now that we know what is blockchain development solutions, let’s see how blockchain startups work.
When you have a startup, your goal should be to make your product available to more people than ever before, and this is where blockchain technology startups work best. With this technology, you can create your own cryptocurrency and sell it through exchanges (or even give it away as an incentive for users), which will increase its demand and value over time. This will help you create more investors in your company, which will ultimately lead to increased revenue.
Now that you know what blockchain technology is and how blockchain startups work, let’s take a look at the steps you need to follow to create a blockchain startup.
Steps to create a blockchain startup
If you’re an entrepreneur who is interested to create blockchain technology startups, here are a few steps to get you started:
Research and understand the market trends
Before building your blockchain startup, it is important to carry out thorough research about the blockchain industry and understand the market trends. This will help you identify the areas where blockchain technology can be applied and create a solution that meets the needs of the market.
Create a blockchain prototype
Once you have a clear understanding of the blockchain industry and the market trends, you can start working on a blockchain prototype. This will help you validate your idea and assess the feasibility of your project.
Understand blockchain features
It is important to understand the features of blockchain technology and how it can be used to create a blockchain startup. Some of the key features you need to focus on are security, value transfers, smart contract platforms, immutability, transaction verification, and decentralization. By having a clear understanding of these features, you can easily visualize how to include them in your blockchain startup.
Select the best blockchain platform
If you have a blockchain startup idea, then it is advised to select the best blockchain platform for your project. There are various free and open-source platforms available out there, which can help your startup in many ways.
Some of the popular open-source blockchain platforms include Hyperledger Fabric, Ethereum, Corda, etc. Each of these platforms has its own features and functionalities.
Choose the most promising niche
Blockchain technology has the potential to revolutionize the entire world. If you want to get your business on board, you’ll need to choose a niche that’s right for it.
Blockchain is an innovative technology, but it doesn’t have a specific industry or sector. That means it can be used in a variety of different sectors. The best way to start using blockchain is to identify its most useful applications for your company. Each application requires different tools and approaches, so you should do research before you begin building your blockchain solution.
Some of the popular blockchain niches include healthcare, law, government, banking and finance, media, supply chain management, etc. By choosing the best blockchain niche, you can create a blockchain startup that has the potential to change the entire business.
Review the development stages
If you’re building a blockchain startup, reviewing the development stages will help you get started. These development stages include – installation, setup, granting access, building a blockchain, contracts, and making an application. By reviewing these development stages, you can easily assess the progress of your blockchain startup/cryptocurrency startup and identify the areas where improvement is needed.
Find the right team
A successful blockchain startup requires a strong team of blockchain developers that have the necessary skills and experience to build and launch a blockchain application. It is important to choose the right team that shares your vision and is passionate about blockchain technology. Talented blockchain developers are hard to find and much more expensive to get. But not to worry, every problem has a solution. You can always look forward to the experts in the market offering the best blockchain development services to cater to your business needs.
By having the right steps in place, your business can become one of the top blockchain startups that helps make a digital transformation. Also, with each progressing step, you need to know what blockchain can do for your business.
What can blockchain do for your startups?
As startups get involved with blockchain, it is important to understand the technology and its impact before working on a project. So, for a better understanding, we have listed a few pointers that will let you know how blockchain is helpful for your startups.
Can make you early adopters
Just like the starting days of the Internet, the Blockchain world is underdeveloped to a huge extent. There are a number of critical elements that will have to be addressed before Blockchain becomes a mass phenomenon.
For startups that are willing to act as fast movers and follow the plant the flag strategy, there is a golden opportunity to conceive and grow a community before space becomes too overly crowded with Blockchain business applications.
By investing time and resources to develop a business model with Blockchain at the center of the processes or even a major part of the working mechanism, will automatically give startups an edge over others working in the same domain – something that all startups need in a time where there are thousands of businesses working in the same category, fighting for the same piece of the market.
Can replace antiquated processes with digital systems
A number of startups operate on some or the other form of legacy software or outdated infrastructure, which not just increases the cost of conducting business but also make them inefficient and inconsistent to a great extent. Plus, a great number of vital processes are manual in nature, meaning they are subject to the risk of human error to a massive extent.
With blockchain for small businesses, startups will be able to solve a great amount of these issues. The technology is known to decentralize the pool of data segregated among a great number of different processes – something that solves the startups’ need to rely on manual labor to collect and process data.
Can secure their data
Cybersecurity is a point of concern for companies of all sizes across industries. The global spending on cyber security-based services and products like automation and IoT is estimated to increase by $1 trillion in the coming five years.
Noting the incredible security proof that Blockchain systems come with, they are poised to soon become the de-facto mode of gathering and organizing the enterprise data – and a primary answer behind the question of why companies use blockchain.
All the data gathered in the ledger gets automatically encrypted with the newest and greatest of the cryptographic methods; the warehouses are only accessible through a key-value mechanism, which validates and authorizes the identification before granting access.
Moreover, the decentralized mechanism of Blockchain for small business reduces the security risk to a great extent. As the distributed system cannot get manipulated by any single entity, it is impossible for hackers to change the data without notifying everyone in the network – something that protects against corruption and give the control back to the actual users.
Now that you have seen how blockchain can make your startup more efficient, let us look at the benefits of using blockchain for your business and the steps to implement blockchain in your business.
Benefits of using blockchain for your business
- Payment and money transfer
- Contracts creation and abiding
- Distributed cloud storage
- Protection of digital identity
- Supply chain management
- Quality customer support
- Advertisement and promotion
- To generate funds
There are a number of reasons that have not just brought the demand for VC and ICO at an equal stage but have also increased the fund investment count for ICO fund model. But, the ones that make ICO ideal for you are:
Read more about blockchain startups