Blockchain technology is as compelling as the Internet itself from the time when it was considered to be overhyped till now when it has become an essential part to many industries including finance, health care, supply chain and whatever business you are doing to elevate its prowess and guarantee growth in the long run.
This go-to technology has already been implemented in a number of processes at a high level and increased the performance efficiency exponentially of such market giants as Walmart, IBM and more.
The aim is to convey the idea that blockchain could be integrated into businesses of any size. No matter what industry you are in, it will yield results.
While well-established businesses are transforming their working processes by blockchain employment to be in compliance with the modern world, startups that want to get the ball rolling should not underestimate the positive impact blockchain has.
This article is about what blockchain is and how effectively it operates in startups to make it thrive.
Let’s shed light on how you can implement blockchain into your startup, but first let’s dive into the concept of blockchain.
A blockchain is a ledger that is distributed across the nodes of a computer network. The transactions occurring on the blockchain are stored in blocks that have a certain capacity and once they are filled, they are closed and linked to the previous blocks creating a chain that keeps records in chronological order. Hence you have complete data traceability.
The records are stored in a way that it’s difficult or even impossible to change, eliminating the need for trusted third parties that, in turn, cuts down your expenses on administrative personnel.
A vast number of entrepreneurs all over the world have started to capitalize on the crypto industry in recent years, that’s why cryptocurrency startups are popping up everywhere, but the truth is that without the proper consideration of all the development stages, the project takes the risk of being fruitless and fall through the cracks. Below you can see the steps that will take your crypto or blockchain-based startup off the ground:
Research and understand the market trends
First, it’s important to understand how the crypto industry works. A thorough investigation about the market trends has to be conducted, this will help you to understand in which way to develop your business and what problem it will solve.
Create a blockchain prototype
Once you have understood how the crypto business is operating, it’s time to create a prototype or MVP (minimal viable product) to assess the project’s feasibility by testing it on prospective users that gives you the possibility to refine the project before the mainnet launch.
Understand blockchain features
Blockchain technology has a great deal of features and if you have a clear understanding of how to use them it will help you to integrate them into your startup in an effective way standing you out of the crowd, here they are:
Select the best blockchain platform
You should choose the most suitable to your startup platform where developers can create unique and secure applications. There are various free and open-source platforms, the most popular of them are: Bitcoin, Ethereum, Hyperledger, Corda, and so on.
Choose the most promising niche
Digital currencies were the first application of blockchain technology without realizing its true potential. In fact, it can revolutionize almost every sphere of our life, including healthcare, IoT, transport, government, finance, etc.
Review the development stages
Reviewing the development stages will help you to assess the progress of your startup and identify what should be improved, these stages are: installation and setup, granting access, creating a blockchain, contracts and making an application.
Find the right team
If you want your startup to be successful, it’s advised to have a well-versed and passionate about the technology team on board. Although talented specialists in the blockchain sphere are difficult to find, it’s worth the time and effort to find a skilled team that will create and launch a future-proof project.
With following the aforementioned steps, your startup is to make a breakthrough in the digital world.
Can make you early adopters
The blockchain technology is still in its infancy and there are a lot of critical elements that will have to be addressed before the mass adoption of blockchain. So, the startups that will break new ground in blockchain are likely to be at the forefront in the industry and have an edge over their competitors – something that is vital for all startups working in the same domain and trying to solve the same issues.
Can replace antiquated processes with digital systems
Numerous startups use some sort of legacy software or other outdated infrastructure that not only increases the cost of doing business, but also creates inefficient methods of work that hinders the development of business. For example, the prevalence of manual work brings about human errors or discrepancies are found in the reconciliation process that takes a lot of time to fix. With blockchain startup the workflow is streamlined by data decentralization that eliminates human interaction from the data collection process.
Can secure their data
Companies of all sizes and across various industries are concerned about cybersecurity and the global costs for cybersecurity-based services are estimated to increase by $1 trillion in the coming five years. With blockchain all the data of an enterprise is gathered in the ledger and encrypted so that one is granted access only after the verification process. Due to its distributed nature no manipulation could be done by a single entity without notifying everyone in the network that makes it difficult for hackers to infiltrate, and that is something that turns control of data over to its actual users.
Cloud storage that is dispersed
Blockchain keeps your records safe during data transfer and in nodes making it immune to malicious activities. Distributed cloud storage system appears when all the elements of cloud storage are gathered together in the blockchain ecosystem. Once that happens, each action like access to data, its retrieval or making changes is traced by all members of the network.
Digital Identity Protection
With the risk of fraud and data misuse being increased, the issue of digital identity protection is put today on the agenda of many visionary companies. Nobody is completely safe from the identity being leaked on the Internet or in the hands of hackers. Blockchain can be used as a platform to protect digital identity and solve the problems of authentication and reconciliation processes that many companies encounter. More so, it’s possible to create encrypted digital identities instead of usernames and pin codes.
Realizing the benefits of blockchain is immensely important to determine how it can yield benefit to your startup. Below is the overview of the benefits the technology offers:
Payment and money transfer
Blockchain is destined to transform transactions with its real-time payment solutions, saving a significant amount of time and money since money transfers are handled automatically in a middleman-free manner eliminating redundancy in operational processes.
Contracts creation and abiding
Starting any business you will have to create a number of contracts with third-party stakeholders and blockchain with its smart contracts might come in very handy to help you establish binding relationships, verify the data and automate the process of concluding deals.
Supply chain management
There’re a number of ways in supply chain management where blockchain is used:
Quality customer support
Businesses can provide customer support on the basis of blockchain in two ways:
Advertisement and promotion
Promotion is ignorable by many startups, although they require awareness in the market. In fact, the traditional advertising industry is full of loopholes that incurs unnecessary costs. Blockchain has the potential to overhaul the advertising process in a number of ways:
with a great deal of management work to be done, that if done manually is time consuming. By implementing smart contracts brands will manage the inventory better.
To generate funds
One of the signs of success for startups is the ability to receive investment. The preferred way of fund-rising these days is Venture Capitalist, but ICO (blockchain-backed model of attracting investment) is likely to replace VC for a number of reasons: there’s no geographical boundary, the process lasts for about 30 days, that is quite speedy and the requirements towards entrepreneurs presenting their projects are not so strict as with VC .
Complexity in regulations
One of the biggest impediments for entrepreneurs getting ready to launch a blockchain startup is the lack of regulations safeguarding them in case something goes wrong. While there are some regulations towards blockchain adoption being prepared, the time when we have real regulation in place is still far off.
Presence of legacy systems
Startups that want to use blockchain as an enabler or element behind the product will have to have a DLT-infrastructure that requires a certain level of technical expertise and capital. So, the solution is investing into skillful blockchain developers who know how to integrate blockchain into the existing system.
High hack incidents
Against a backdrop of high-profile hacks related to blockchain which result in a loss of money, enterprises are reluctant to adopt the technology.
The way out is to employ a private or permissioned network instead of open or permissionless that implements role-based access control making the network highly tamperproof.
Before you go all in on launching a startup, it’s crucial to think about the process from start to finish.
Identify a problem that needs solving.
Define the industry you want to revamp with blockchain and the problem you will solve in order to articulate a value to capture interest in your startup. Establishing the objectives at the beginning and identifying the target audience will help you to envision a go-to-market strategy and understand the tech needs.
Create a white paper outlining the idea (i.e. a solution to the problem) and how it will work.
Want to have some coin to get your startup off the ground? Then you need to create a white paper describing the problem, the solution and all nitty-gritty details of your product. A white paper plays a pivotal role in defining whether it’ll be a lucrative project or the one that fails. It will also give credibility to your startup with the purpose and applicable technologies being spelled out.
Find or create a team of developers to build the platform.
If you want to take the cake you need to get developers on board since they are a key to a project. Your solutions couldn’t be turned into reality without tech expertise. Blockchain may be complex, but it shouldn’t be so for users. So, a well-versed team of developers can be a bridge between your product and a customer offering a seamless user experience.
Raise money through an ICO (Initial Coin Offering) or VC funding.
A plethora of investors today are eager about getting in at the ground level of new and future-proof ideas. Both ICO and VC are ideal for fundraising in crypto space. With ICO you have more freedom, no geographical limits and no need to present a whitepaper with a detailed description of the product. With VC you have more strict requirements from the investor’s side, but you receive their loyalty, business guidelines and valuable connections.
Develop the company and buy/sell tokens (hooray!)
Once you go through the aforementioned stages, you are ready to venture into the market and bring innovations to the industry.
The solution that allows you timestamping of the files that you upload to the public ledger and everyone sees that it belongs to you. There’s a possibility to integrate a cloud-based storage system like Google Drive, Outlook, OneDrive, and etc.
Infura
Premium service known as Etheruim API that allows you to seamlessly connect with the Ethereum network without high-level technical expertise and create apps of any size.
It offers a comprehensive set of blockchain services such as blockchain consulting, hybrid ledger installing, tokenization and smart contracts.
The company offers financial solutions for the Bitcoin ecosystem representing a peer-to-peer system that removes the need for intermediaries.
MythX
This startup allows developers to identify vulnerabilities in smart contracts within the Ethereum network. On top of that it encourages the use of cryptocurrency since you may pay for a subscription by a stablecoin.
The company created a blockchain-based application where users can check the legitimacy of drugs when purchasing thus solving the problem of bogus pharmaceuticals that entail drug-resistant diseases and antimicrobial resistance.
Clinicoin encourages people to do physical activity by rewarding them with tokens. Customers have to register their activity in the app and verify them by third-party tracking apps.
Medicalchain leverages blockchain to securely handle patient’s medical records for a collaborative purpose by accumulating the most recent information in one place and sharing it with each organization in the network.
Solve.Care
Solve.Care solves the issue of high administrative expenditures by utilizing blockchain technology directly connecting healthcare facilities with medical staff and giving them the opportunity to set the desirable working hours.
Dentacoin
Dentacoin is basically a cryptocurrency that connects dentists and patients. Dentists are compensated for their services while patients are incentivized for taking care of teeth and having good eating habits by Dental coins rewarding.
A data-driven service platform offering a transparent and highly customizable real estate purchasing experience. The company has also partnered with numerous European property listings in order to provide clients with the updated database of properties available.
The company utilizes smart contracts to execute real estate purchasing and rental agreements by establishing protocols, and in case the predetermined conditions aren’t met, the contract is automatically dissolved.
Fundrise
An investment company that offers opportunities for low-cost investment in the real estate sector. In this case customers become investors eliminating the dependance of external capital.
SafeWire
The solution to the increasing wire fraud that real estate agents, firms and customers have to grapple with due to hackers attacks. The platform works on the blockchain network providing security to transactions from the time they are sent till the moment they are received.
NestAway
The network for real estate renting solutions where owners easily rent the property out within a centralized network. More so, you can find home maintenance services like household repairs.
The company streamlined the underwriting and claims process through automation that has led to reduced completion time, precluded illicit transactions and fraudulent claims enhancing the trust from client’s side.
Lemonade
The company offers insurance to renters and homeowners, the basic idea is that the company takes a fixed fee each month from payments and the rest is allocated for future claims. Once the claim is received, it’s verified through smart contracts and the client gets compensation quickly.
Dynamics
This is a peer-to-peer insurance company running on the Ethereum network focused on unemployment insurance. Policy applicants need to present their LinkedIn profiles, and the unemployed will be verified through blockchain with further issuing of insurance payout.
Rocketpool
It is a staking option on the Ethereum network that allows staking with less than the required minimum making it more accessible for people who do not have a coding background and find staking risky.
Dharma DeFi
Dharma Labs is a wallet on Ethereum directly connected with your bank account that functions as a bridge between your traditional banking system and decentralized finance.
Slync offers a suite of supply chain applications based on AI and blockchain-enabled software that are integrated to the platform via APIs. It enables transparent and error-free traceability of goods.
Bext360
Bext360 is a coffee supply chain management solution offering a complete traceability of goods through tracking from source to the end user. Special kiosks check the grade of beans using AI to set a fair price,moreover, APIs are given to wholesalers and retailers to facilitate marketing and loyalty programs.
Everledger
Everledger offers an immutable ledger for diamond identification through which you can have a complete provenance of each diamond including rough state, allotment, polishing and certification. The risks of insurance fraud for diamonds are mitigated.
Chronicled
Chronicled tackles the issue of counterfeit limited edition collectible sneakers and luxury goods. The platform is built on NFC and blockchain technology, and offers a mobile app where you can see an open and decentralized record of product authenticity.
LiquidX
It’s a provider of a marketplace that connects all parties across the entire finance ecosystem. The company provides various working capital solutions such as inventory finance, supply chain finance, accounts receivable, and etc.
LivestockCity
LivestockCity is a farmer’s tool that connects farmers from all over the world, SaaS-based management software enables farmers to manage animal records and expenses/income, the streamlined ways of buying farm related products are also in place.
Demeter
A place where you can rent and farm micro fields across the globe without any trusted-third parties. You can see the data on a website or in a mobile app, the data is automatically analyzed and the system makes signals on how to optimize the process.
This is the platform for buying and selling used machinery and equipment. The startup is adept at using the technology for connecting buyers and sellers and facilitating transactions.
iUNU
iUNU utilizes computer vision to make indoor farming and commercial greenhouses more efficient and autonomous that will have a positive impact on nutrition across nations.
FarmTogether
A farmland investment platform that provides access to farmland as an asset making it an attractive investment tool provided by low volatility level and 10% returns per year.
The cloud platform Azure of Microsoft helps to track goods in the supply chain using blockchain technology that enables the compliance to standards of pharmaceutical and perishable food companies.
Blockchain in Transport Alliance (BiTA)
BiTA was created as a forum for logistic specialists to discuss the ledger technology implementation and shed light on blockchain benefits in the logistics industry.
T-Mining
The company is developing software to make the logistics more secure and transparent. With T-Mining only authorized users are allowed to carry cargo, the workflow is automated by smart contracts and document digitization, the data exchange is secured that creates trustful cooperation.
MuleChain
MuleChain is a smart contract-capable delivery network that enters into an agreement with the mules heading for the same destination. MCX tokens are put up as a collateral by both parties, after the shipment is completed mules receive the tokens as a payment.
OpenPort
The blockchain is destined to optimize the issues of cash flow with its digital ePOD (Electronic proof-of-delivery) providing hard evidence of cash flow as well as the contracts that have initiated the transactions.
It’s clear as crystal that the technology that was once associated only with cryptocurrencies, today has a world-wide scale and reach, making waves in almost every industry. Companies are facing a need to be reformed to stay ahead of the competition, and blockchain technology stands to overhaul business processes by making them more secure, efficient, transparent and cheaper, with fewer middlemen.
It’s nice to see that startups today are not just trying to take their market share without being useful to society, instead they are taking strides to solve the issues of developers and communities in the blockchain sphere.
Since blockchain is at an early stage of the development, its integration into a business requires a high-profile tech expertise that’s why it’s crucial to have top-notch professionals on board.
At NDlabs we design and develop blockchain solutions tailored to your needs. Contact our team of blockchain developers and they will help you to build feature-rich and robust blockchain software solutions for your startup with minimum risks and maximum returns. They can develop either a full-fledged solution from the ground up or migrate your existing system to a new operating environment. You can also contact our consulting team to have a clear picture of why and how blockchain can benefit your startup.
