Blockchain technology has shifted in many ways since 2008, the year Satoshi Nakamoto released his white paper simply titled, Bitcoin. In the last decade blockchain technology has become a powerful utility that very well could change the digital game forever.
If you are a blockchain and cryptocurrency enthusiast, this may be the best time to launch a blockchain technology business. For example, over $2 billion has been invested into blockchain solutions this year already, and the trend will continue. In fact, it is estimated that blockchain tech will continue to increase every year at an astonishing 40 percent per year.
The question is, however, how do you start your own blockchain technology business and get a piece of the billion dollar investments being made? To capitalize, you’ll need to have a utility in mind, like MasterCard’s new blockchain patent, which in a way is no different than a business idea. The rest is as follows.
1. Find A Common Issue And Apply Blockchain Utility To It
There are a number of ways businesses can use blockchain technology, but not all the solutions out there are solving large-scale issues. You also don’t want to aim too high. For instance, there are several organizations aiming to increase food distribution to those in need around the world using blockchain technology.
This goal is a lofty one, and though the aim has huge value, there is far too much red tape and political problems that would potentially stall a project of such magnitude. Instead of trying to save the world, think about starting a blockchain technology business that solves a more micro-issue. Once you’ve mastered that, then go fight world hunger with blockchain.
2. Understand Consensus Mechanisms
The use case scenario, your solution to a common issue using blockchain technology, is important. However, the way you deliver your solution is just as essential. This makes understanding consensus mechanisms vital to starting a blockchain business that is a successful one.
The different types of consensus mechanisms include, Proof of Stake, Proof of Work, Delegated Proof of Stake, Proof of Identity, Proof of Burn, Proof of Elapsed Time, Proof of Importance, and the list goes on.
These are a few of the most common consensus mechanisms, but learning more about all could have value when starting your business. The biggest nugget of this is to ensure you can deliver your solution via the blockchain in the most efficient and useful way for your users.
3. Choose A Platform and Online Presence
You can have the best blockchain business idea on the planet, but if know one knows about it and it is on the wrong blockchain platform, you may have an issue winning customers. For instance, you’ll need to choose a platform, like Ethereum, Corda, Stellar, Quorum, BigChainDB, Openchain, Multichain, and again the list goes on.
Next is having an online presence. Bringing your blockchain technology solution and business to the masses means you need to have a website that details the information and value proposition. Essentially the “Why” anyone would need your new solution.
Luckily, there are a lot of made-to-order themes for new blockchain tech businesses online. You will also need to choose a website hosting provider and plan. The two best for new businesses is VPS or shared WordPress hosting. These hosting services are scalable and allow you to bring your business to market in days.
4. Public Or Private Node Development
Node development is another very important consideration when starting a blockchain technology business. You will need to first decide if you want your business to provide public solutions, or private ones, leading to the type of node development you will implement.
There is also an option of doing both private and public, and you will also need to consider the permissions you will have in place. For example, your solutions may be permissions-based, thus needing a special node development. This will lead us into the last consideration for your new blockchain technology business.
Ready To Launch?
Getting into blockchain is actually easier than a lot of people think. Despite the craze and volatility in Bitcoin and other cryptocurrency, starting a block-business can be rewarding and far more stable than simply investing in digital coins.
The utility blockchain technology serves up can be applied to a number of industries. You can start a payment system on blockchain, identity and security platform to mitigate online retail fraud, and more. How will you capitalize on the billions on the blockchain business table?