Blockchain Technology has come a long way since its inception in 2008, when Satoshi Nakamoto published the now famous Bitcoin paper. The peer-to-peer decentralized method to send and receive funds via cryptocurrency, however, has taken on new forms and paradigms.
The utility of Blockchain is now too compelling for companies, financial institutions, and governments to ignore. Using the utility to streamline processes or enhancing security is trending.
In fact, there was $2.1 billion spent globally on blockchain technology solutions in 2018 alone. And blockchain growth is not slowing down anytime soon either. Blockchain expansion is estimated to be over 40 percent year-over-year till 2022.
The utility is a no brainer, and it is not all about Bitcoin. The following seven steps to doing just that may serve useful.
1. Set Up a Sleek Blockchain Website
You can build a Blockchain startup that is the best around, but without any online visibility, no one will ever see or hear about it. This makes launching a sleek Blockchain business website priority before launching your actual Blockchain based Currency.
Doing so can also help net funding from potential investors, as well as crowdfunding campaigns, since you will have an online space for people to check out what you are doing, planning to do, and cool updates on progress.
To make this happen, you need to get a domain name. These are usually free when you choose a WordPress hosting service to host your new blockchain website. Once you have this, the next step is to choose a WordPress theme. The good news is that the popularity of blockchain has led website designers and developers to create amazing themes for purchase. Check out Themeforest to begin your research.
2. Solve A Realistic Problem Utilizing Blockchain Technology
Blockchain Technology has plenty of uses, but not all are realistic. For example, there are many governments and global organizations that believe Blockchain can end world hunger. However, “end” may be slightly over exaggerated.
Can this innovative technology solve food distribution problems? Yes. But ending all world hunger could be far more challenging and presents a number of political and economical issues. Why is this important?
When you begin brainstorming and developing a Blockchain business, you want your use case to make business sense and be achievable. To get a list of business ideas, draw from the utilities Blockchain excels at, like smart contracts, enhanced security via digital signatures and encryption, as well as management of smart assets.
3. What Consensus Mechanism Will You Utilize?
Once you have identified the type of Blockchain use case you will pursue, you will need to find the best fitting consensus mechanism to deliver your solution. There is a wide variety of consensus mechanisms to consider:
- Proof of Work (PoW)
- Proof of Stake (PoS)
- Delegated Proof of Stake (DPOS)
- Proof of Identity (PoI)
The above are only a few of the most common mechanisms. There are variations in each consensus mechanism, but the main aim is to ensure processes are completed as intended based on the project, or in this case, business need. You will have to decide which is the best fit for your business project.
4. Build Technology on the Best Platform
The blockchain platform you choose often depends on the type of consensus mechanism you want to use for your business. One constant when it comes to blockchain platforms is that nearly all are open source and without cost to you. Some blockchain platforms to research are:
- Ethereum
- Stellar
- Cordano
- Multichain
Ultimately, you do want to consider functionality and the range of capabilities of a platform. A few main Blockchain platform assets include, ability to customize smart contracts, scale as needed, and optimized speed of transaction.
5. What is Your Blockchain Instance
This is a very important step in starting your business, because the Blockchain instance you configure can sometimes not be altered after launch. These configurations include:
- Key Management
- Permissions
- Asset Issuance
- Multi-Signatures
- Parameters
6. Know What APIs You Need
There are a number of APIs you need to have in place to start your Blockchain business. When choosing the Blockchain platform you want to use for your business, look for pre-made and implemented APIs. There are Blockchain APIs for:
- Security
- Connectivity
- Ownership
- Chain Management
Wrapping Up . . .
Starting a Blockchain business can be rewarding. You may be using your business to solve a major world health issue or strengthening the security of corporations, the utility of this Technology is simply endless. Use the above six steps as a quick guide to get moving in the right direction. Do you have any Blockchain business tips? We want to hear from you.
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