Though the blockchain derives its origins from technologies introduced decades ago, it’s only recently that it’s gained momentum with Bitcoin, the one for which it was created. From a business standpoint, it’s helpful to think about blockchain technology as next-generation software, as it improves quality, which can help organizations generate more customer engagement. The blockchain reinforces the impact of social trust on collaborative innovation via a forceful perspective on value creation. As collaborative technology, it enhances business processes that materialize between companies, so it offers high returns for each dollar spent.
Bitcoin works as a peer-to-peer transaction system, whereas Ethereum is best when you need to create smart contracts and build decentralized applications. Ethereum is the first and undoubtedly the most fruitful endeavor to build a world supercomputer, solving the trilemma (consensus ledger, computing power, and storage capacity) by connecting three topologically heterogeneous P2P networks with zero-knowledge proofs. Unfortunately, the Ethereum price lags behind that of Bitcoin, with investors preferring BTC over ETH.
Many newer blockchain businesses are about to pop up, and if you don’t change, you risk being left behind. Undeterred by fewer resources and the battle for talent, you can find ways to make the most of blockchain technology but have a very clear idea of what you’re looking for and run with it. Here are some ideas to inspire you if you’re looking for the next best thing:
Tokenization Advisory Service
The tokenization process is a promising solution for more affordable and frictionless transactions, increased transparency concerning transactional data, and access to primary/secondary markets. Rights are converted into an asset that exists on the blockchain and can’t be replicated. Asset tokenization supports inclusive finance by opening up the market to a wider number of investors, and no intermediary function is required. You could offer consulting and advisory services to companies looking to tokenize their assets, including commodities, real estate, and intellectual property. Put simply, you can help them navigate the complex and exciting journey.
Cryptocurrency Education
Knowledge empowers people to make informed decisions, deciding which option best fits their needs and brings them closer to achieving their goals. Since cryptocurrencies are now becoming integrated into the global financial system, there’s no longer a clear difference between traditional and decentralized finance, so it’s important for people to be equipped with the information and confidence they need to fully experience the impact of blockchain technology. By capitalizing on the experience you’ve gained, you can build a profitable business that doesn’t require much capital investment.
You have a unique selling proposition, so find your target audience. Don’t assume everyone will find cryptocurrency interesting; if you’re trying to appeal to everyone, you’ll appeal to no one. Initially dominated by tech-savvy individuals and early adopters, the cryptocurrency landscape now draws in a diverse audience, including Millennials and Gen Zers. Identify the people you wish to reach to map the direction for your business model. Think about using search engine advertising, social media marketing, and video advertising. Equally, you should build a website optimized for multiple devices.
Defi Exchange
A DeFi exchange (DEX) is a peer-to-peer platform that makes it possible for traders to exchange digital assets with one another. The transactions are facilitated by smart contracts, so there’s no need for an authority to oversee and authorize trades, to say nothing about the fact that buyers and sellers can keep control of their wallets’ private keys. Trading fees are the primary source of revenue for the DeFi exchange, and there are multiple fee structures to choose from, such as maker-taker fees, flat fees, and volume-based fees. Withdraw and deposit fees are another critical source of revenue.
Peer-To-Peer Lending
Peer-to-peer lending, commonly referred to as social lending, enables individuals and small businesses to obtain funds secured by other people using the Internet as a marketplace. Some platforms connect borrowers and lenders directly, while others connect them via a third-party intermediary, ensuring a high-touch intermediation. You can run a for-profit website and concentrate your attention on domestic borrowers, offering unsecured loans to individuals who refuse to use mainstream debt products or don’t have access to them. Lending functions on the basis of trust.
Attention must be paid to the fact that loan size tends to be small, so community development loans are better suited for a peer-to-peer lending platform, as they tend to be much larger. Advantages include but aren’t limited to longer maturities, variable rates, and balloon payment terms. As far as functionality is concerned, the site should contain basic features. Otherwise, the project loses its essence. Examples are:
- Sign up & authentication form
- User profile & settings
- Personal data management
- Banking integration
- Reminders and notifications
Needless to say, you need a strong team of specialists, including software developers, to deliver the product on time and with the best quality.
Blockchain Gaming
Lastly, with billions of gamers worldwide, the gaming industry will continue to rise in 2024. In blockchain-based gaming, players can use cryptocurrency to purchase in-game assets swiftly and cheaply, as it’s not necessary to rely on third-party payment providers like Visa or PayPal.
Game developers can be their own entrepreneurs, even without prior industry experience, and digital in-game assets are now acknowledged as intangible assets with real value. By streamlining royalty processing, you can take advantage of a trusted, transparent, and connected system.
The Final Note
There are lots of benefits to starting a blockchain business, such as the ability to freely share data across the digital ledger, the fact that applications are secure, transparent, and accessible to everyone, and you can attract investors, supporters, and clients without much difficulty. If you struggle with making a decision, compare your options, determine if you want to have a high level of involvement in the business, and think about starting small and building your enterprise over time.
Blockchain’s genuine value is apparent when it’s used in areas where conventional databases aren’t suitable and trust isn’t present. Blockchain technology can be coupled with artificial intelligence and machine learning, transforming the way we live and work.
