Management March 12, 2019 Last updated March 6th, 2019 465 Reads share

How Startups Can Use Blockchain Technology in Novel Ways

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Are you a startup exploring benefits of blockchain technology? Then, this article is a perfect read for you!

 

We all know that it all has started from the buzz created by cryptocurrency, its volatility and its predictions of having a bright future. However, the technology behind these tokens, i.e. blockchain technology, has far more applications than just cryptocurrencies. Isn’t it?

Apart from enterprises and established businesses, small businesses, startups, and solopreneurs – all can get benefitted from this novel technology.

As per Statista, funding and investment of blockchain startup companies worldwide from 2012 to 2017 (in million U.S. dollars) has seen great upsurge.

 

Though it is in its experimentation phase, you can find various applications of blockchain technology in the fields of finance, accounting, healthcare, education, manufacturing, retail, logistics, and supply chain, insurance, and other mega industries. The key to its success is the decentralized and transparent nature of the technology.

Nevertheless, such a unique technology also comes with costs. And costs are a major concern for any startup. How blockchain technology fits in the reality of startups? What startups can do to successfully utilize blockchain? Are there any use cases of blockchain technology in a startup environment? Your questions are answered here! Keep reading.

Blockchain technology and startups

Business is an important part of the economy for every country and likewise, startups form an important part of the growth of the economy.

Most of the organizations, ranging from large enterprises to startups and small to midsize businesses, want to adopt this technology and enjoy its advantages. Though, the fact cannot be denied that it is still in its infancy stage.  However, many startups have started to explore how this technology can change the way the world works.

Think about all the possibilities and opportunities that are available when a startup grows along with the growth of blockchain consulting. With enterprise blockchain solutions and blockchain development, every startup can achieve its vision and mission without any obstruction.

Adoption of blockchain technology is beneficial for startups too!

There are many ways how blockchain technology benefits a startup. It may be regarding operations or opportunities that are available from investors who are willing to invest in a business that runs on blockchain platform as a base.

Business market for any industry keeps changing and how good would it be if we are able to predict what is going to happen next. It would allow us to take the necessary precautions and make sure we are successful. This is possible with blockchain technology. Following are few projects, investors and ways how blockchain can help a startup.

The blockchain technology brings transparency as well as efficiency. Further, it also speeds up transactions and turnover times. The transfer of ownership of digital assets, or execution of stored procedures, runs smoothly and effortlessly in an extremely distributed, global network with no central obstructions.

Efficiency and automation brought in by smart contracts can drastically reduce complexities, delays and intermediary charges. In short, opportunities of blockchain technology for startups are overblown. And, that has been well proved by some of the most prominent blockchain-based projects in startups, across the globe.

Blockchain-based projects in startups:

 

Every startup needs a unique selling proposition to make sure that they have something new and attractive to survive in the business market. Decentralized network platform allows them to sell their products or services at a maximum reach in both in terms of meeting the requirement as well the location of the customer.

QTUM, a hybrid blockchain based cryptocurrency like bitcoin:

It is a blockchain based project and works on the blockchain platform. While it may have few similar ideas as to Ethereum it still shows better operation than Ethereum in terms of having a robust environment as feature offering. Their decentralized and open-source smart contracts show significant value. It has a DGP (decentralized governance protocol) controlled and maintained blockchain thus allowing the users or participants to vote for a change in certain parameters controlling the network.

NEO, a next-generation digital currency platform:

Unlike Ethereum, NEO has complete support and back up from the government of China making it even more famous. It runs on a blockchain based platform. It is also better known for the value it provides. It uses a mechanism technique called decentralized Byzantium Fault Tolerant which makes the operation much faster thus allowing the transaction per second to be faster too unlike Ethereum which is slower.

Augur, future prediction-based project:

Would it not be wonderful to have a time machine to predict the future to know what is going to happen so that we can make decisions accordingly to achieve our goals. Now, think about its huge positive impact if we could predict the events that might take place from a business point of view. It would be a dream come true for all business people and this way everyone can be satisfied starting from CEO to customers. This is what augur aims at achieving. It runs on a blockchain platform and is considered to have huge potential in the future.

For example, say you are one of the members of the augur network platform and you have a share in company A and you post a question asking “will the shares of company A go down or up in the next financial year?” and augur will use the crowd prediction and give you a report back saying it will go up.

Imagine how helpful that would be for your business or any investments you want to make in the present for future potential.

Institutional investors willing to invest in startups:

 

Just like normal investors, there are many institutional investors who are willing to invest in startups that are promising. These institutional investors are looking for opportunities to invest in a business that runs on blockchain platforms.

1)   Digital currency group:

They are investors who are currently looking into the opportunities of the digital currency market. Their mission is to speed up the development of the world for the better with a better financial system. They build and support the infrastructures and usage of bitcoin and blockchain. They use our ideas, suggestions, and network to gain access to capital for investments.

2)   Blockchain capital:

They are investors with a mission and vision of helping the world become a better place by helping entrepreneurs stay on their feet. They build a world of companies and support projects that work on a platform based on the blockchain. They are focused on providing the necessary support and tools needed for making their mission and vision come true. They provide tools like expertise in investments, recruitments, etc.

3)   Union square ventures:

They are investors located in New-York. They manage numerous amounts of assets; more than USD 1 Billion. This particular investor is known for their dedication and their unaltered revenue generation from the funds. They are also known for their smart exit strategy that they follow every year. As an investor, they keep looking for better opportunities and chances thus leading them to invest in blockchain projects. Also, they have invested in block stack labs and coin base.

4)   Ribbit capital:

They are investors who are focused on constant learning and experience from everything that happens around them and from the mistakes they commit and learn from them to be better the next time. They believe that change will bring new players into the markets and brands thus looking at blockchain and digital cryptocurrencies as an opportunity to make the world a knowledgeable better place.

5)   CHANGE:

They are investors who are looking for parameters of a shared passion and ambition in entrepreneurs who are willing to change needed for better success. Thus, they are exploring the options of investing in blockchain and other such digital currency platforms.

Are you a startup? Then, grab the opportunity of blockchain technology:

The above-mentioned are just a few handsome examples where blockchain plays a significant role in business and startup showground. With the major threats of security and inefficiencies existing in the actual business environment, blockchain adoption can help them deal with it great effectiveness and efficiency.

To join the global race, either hire a blockchain developer or be part of a blockchain development company. Either way, you get to be a part of the ever-rising community. Use the entire opportunities that lie around you in blockchain technology and make sure your startup achieves the potential of what it is meant to be. Let it make everyone’s life even better. Hopefully, your business will also be a part of these successful blockchain projects and one day you get to be an institutional investor for other startups too.

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Sonal Mehta

Sonal Mehta

Sonal Mehta is a Content Lead at SoluLab, a leading Enterprise Blockchain, Enterprise Mobile Apps and Web development company, started by ex-vice president of Goldman Sachs and ex-principal software architect of Citrix. SoluLab Inc provides full spectrum, 360-degree services to enterprises, startups and entrepreneurs helping turn their dreams into awesome software products.

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