}
Blockchain and business— Stuart
Blockchain technology seems to be the new frontier of the business and financial world. Existing companies are trying to incorporate the blockchain element into their business strategies. The success stories of companies like Bancor, Cardano, IOTA, and Ontology are examples of it. Let’s drive into the whole blockchain technology and its role in the business.
What is Blockchain Technology?
In simple words, blockchain is a distributed database whether a distributed ledger technology. A blockchain is a series of blocks connected using the cryptography data structure. Each block contains information on the data in the blockchain and the data itself. A blockchain maintains the timestamp as well as the transaction amount of the data it carries. Blockchain uses this information stored in the blocks to track any changes happening in that data. The blockchain is decentralized. Anyone with an internet connection can directly interact with the network without the intervention of an intermediary party. Blockchain is transparent, so any changes made in the database can be directly viewed by anyone involved with that blockchain.
There are two types of blockchains
Public blockchain
A public blockchain can be accessed by the public. They are mostly used by cryptocurrencies like Bitcoin and Ethereum to run their distributed ledgers.
Private blockchain
A private blockchain is one that is confined to an organization. The network is managed by the organization running the network.
We have seen that blockchain is a secure technology. But these networks are primarily used to connect the people and help them exchange money. Blockchain technology is used to store sensitive information. These kinds of information can be majorly private, public record of the transaction, digital identity, medical history, and other financial transactions.
What is The Cryptocurrency?
A cryptocurrency is a digital currency that is stored in an electronic form. The transactions on this currency are also stored on the blockchain. All these currencies are encrypted using blockchain technology. The blockchain, thus, can be used to verify the transactions happening in these currencies.
Blockchain is a secure technology that is not only used in the business but is also used in the cyber realm. Cryptocurrencies may be seen as a form of digital cash. Blockchain allows the transactions to be made anonymously over the network which is why it is used by the cryptocurrency such as Bitcoin. Blockchain technology is not owned by a single entity and the data is public. This is mainly the advantage of blockchain technology. The blockchain network is not in the control of a single institution. So, no organization can misuse the power of the blockchain to gain an upper hand over its competitors. This also ensures that the platform is transparent.
Things to Look for in any Blockchain Startup
Before you join any blockchain startup, there are certain factors you should look into. Not only for startups but any startups you should always keep those things in mind.
Technological Challenges
There are a number of companies working on the development of blockchain technology each day. It is even hard to tell which company will be a winner among the giants. Blockchain technology is still growing and has a long way to go. So, there are a lot of challenges to overcome. Some must-have management skills and the right strategy are all required to overcome the technological challenges which are common for any startup.
Coin Values
Since cryptocurrencies are starting to be viewed as a commodity, a lot of currencies are available in the market. However, you should be careful enough to pick the right one which will continue to be at the top for years. One such company which has the potential to be at the top is Nauticus.
Marketing
There are different kinds of marketing techniques a new cryptocurrency has to use to gain popularity in the market. Some of these include whitepapers, ICO events, and bounty campaigns. There is a lot of competition in the market, and your cryptocurrency must have an interesting story to tell.
Community Development
Community development is an important factor to keep in mind. The blockchain startup should be actively involved in the development of their community. They should be present in social media, forums like bitcointalk, and should be active on the websites related to virtual currencies. This ensures that the firm is honest and transparent in its dealings. The users can approach the firm and guide them towards using the right path. Ultimately, the blockchain is a great opportunity to build a business around. It is one of those technologies which will grow as time goes by.
Blockchains will be at the core of new business startups as well as new organizations to solve societal problems, and I think it’s only a matter of time before we begin to see a massive proliferation of what blockchain businesses really look like. We’ll also see a parallel growth in new types of software that will be powered by decentralized, blockchain-based infrastructure. We’re still just at the beginning, which is a great place to be because we’re in the development phase in a very low-friction environment. The future is extremely bright.
Thanks for reading :)
Follow me for my crypto / DeFi content to expedite your knowledge!
🤓 Advertise with me! 👉 DeFiknowledge.com