We are clear that blockchain technology’s strength and potential are not just confined to digital currency, as it develops and becomes more widely used. Blockchain’s underlying technologies have the potential to revolutionize many industries’ commercial landscapes. Even though this is still a relatively unexplored area, many firms are already interested in what immutable distributed ledgers may provide. Meanwhile, the emergence of decentralized autonomous organizations (DAOs) backed by blockchain has given rise to the first Internet-native commercial enterprises.
Launching blockchain startups is surely raising the bar if you believe starting a business is difficult. But with the appropriate strategy, such a company may take advantage of a wealth of opportunities.
I believe that, with my experience working on many blockchain development platforms for different industries, I have put together a complete guide on how to launch a blockchain startup.
So if you are trying to learn how to launch a blockchain startup or learn the benefits that blockchain can bring to a startup or an established organization, it will be well worth your time to read my post.
What is Blockchain? Important things you need to know
As I understand it, a blockchain is a distributed database shared among the nodes of a computer network. Blockchains function as digital databases that store data electronically. In fact, it’s a cryptographically linked sequence of timestamp digital documents called a ” block ”. The best thing about Blockchain is that whatever you put into it stays there. Furthermore, no one can forge the Blockchain once it has been built. And no one can change the data once it is stored on the blockchain. Blockchain assists in the verification and traceability of multistep transactions that need these two things. It can speed up data transfer procedures, lower compliance costs, and ensure secure transactions. Blockchain technology can assist with contract administration and product origin audits.
We are now familiar with a few characteristics of blockchains, so let’s examine the blockchain’s operation in more detail.
What is a cryptocurrency/blockchain startup?
Blockchain startups are decentralized and immutable ledgers that enable peer-to-peer cryptocurrency transactions and networks. This startup does not have a single leader, as it is consensus-based and can raise capital from around the world using methods such as initial coin offerings (ICOs), Initial DEX offerings (IDOs), and more.
As we see, the growing demand for digital currency combined with the excitement of building a blockchain-based future is putting blockchain startups in the spotlight. This is evidenced by the venture capital boom. According to the State of Blockchain 2021 report published by CB Insights, 1 in 4 dollars in the world is allocated to blockchain projects.
Ideas for Starting a Blockchain Startup
Based on our experience working with blockchain startups, here are 4 ideas for starting blockchain startups that are successfully adopting blockchain and crypto technology.
Crypto eCommerce
In the future of online shopping, more and more people prefer to buy and sell online. Opening an online store or commerce platform that accepts cryptocurrency payments is a great option. Not only can you accept cryptocurrencies to sell items, but you can also facilitate the entire buying cycle through blockchain. Alternatively, if you already have an online store, you can consider integrating crypto payments into the process.
Cryptocurrency Exchange
One of the most popular blockchain business ideas right now is cryptocurrency exchanges based on blockchain technology. Around the world, there are more and more businesses providing various exchange services. Using these exchanges, traders can convert digital assets like Bitcoin, Ether, and Litecoin into other cryptocurrencies or traditional currencies. Users can also exchange fiat currency for cryptocurrencies with the intention of making money in either case.
Supply Chain Network
Supply chain and logistics management are one of the best blockchain business ideas. Applications have required that they record and monitor each phase of the complex supply chain cycle involving several stakeholders. Blockchain has the ability to secure supply chains from beginning to end, whether you’re ordering from your preferred tech website or buying fair trade coffee.
Cryptocurrency Gambling
Low transaction costs and quick deposits and withdrawals are reasons why cryptocurrency gaming is so well-liked. Another key selling point is the degree of anonymity it offers customers. Customers can gamble anonymously without being located or identifiable. Additionally, it improves security and can reduce the likelihood of disputes by logging transactions on the blockchain.
How can you launch a blockchain startup?
In 2022, the mass market is becoming more and more interested in blockchain technology. To address the rising demand for their goods and services, business owners are establishing blockchain businesses in response to this new financial services trend.
Given how recent blockchain technology is, it is crucial to remember that not all enterprises in this sector will be prosperous. But you can ensure your success if you plan and research beforehand. So, we came up with a guide on how to launch blockchain startups. By checking it out, you will discover everything you need to know to succeed in this field.
#1: Do your research.
As with any new technology, it’s crucial to do your homework and get advice from industry professionals. Before you dive into this technology, you should have a basic understanding of what blockchain is and how it operates. No matter where you live or your coding experience, there are a number of resources that can assist you in your blockchain journey. Fortunately, there are knowledgeable groups of people willing to share their industry knowledge.
Reaching out to other blockchain enthusiasts and asking them about the startup process is the best place to start. Ask them for their opinions on your proposal, the market as a whole, and the mistakes they made when they initially entered this profession.
#2: Find your competition
First, you must know who your competition is. The best time to launch a startup is when there is a new and emerging trend in the market. As blockchain technology starts to gain popularity, many people are still trying to figure out how it will change their business. This means that your competitors are launching their own businesses and are looking to use blockchain technology for themselves. Knowing the competition will help you plan and ensure the success of blockchain startups.
Second, you need to possess specific abilities to set yourself apart from the competition. For example, if you have experience in network marketing or finance, those specific skills can easily translate into blockchain-related skills.
Third, it helps to research what people expect from blockchain startups to be successful. What sort of goods or services are they seeking? What are they most interested in? Once you find these answers, use them as a guide when developing your product/service so that it is exactly what your potential customers want and need.
#3: Choose the right blockchain for your startup
It’s crucial to pick the best blockchain for your startup. For example, if you are looking to create a payment system, you can use a licensed blockchain like Hyperledger Fabric, which is a private and licensed blockchain by design. On the other hand, if you are looking to create an e-commerce platform and have transactions between buyers and sellers done on public blockchains like Ethereum or Bitcoin, then you will need a public blockchain for transactions of any kind.
You can consider the following factors when choosing a blockchain:
- Acceptance level
- Ability of extension
- Regulatory compliance
- Developer Support
- Cost per transaction
When using a public blockchain, you also need to consider how fast your transaction will be and whether miners will maintain it. This determines how much your transaction costs and how long it takes to execute.
#4: Make sure to focus on marketing and branding.
Blockchain is still a new technology, and reputations take time to establish. To build yourself and potential customers, you need to focus on marketing and branding early on. In addition to focusing on marketing and branding, you’ll want to create a sustainable product or service. This will ensure your business has a long future.
Also, you should think about how people will get your product, service, or token. Blockchain technology is still new, so you have to support those who understand the industry before launching this market.
#5: Utilize collaborations within the blockchain community.
It’s quite competitive in the blockchain industry. Especially as the industry expands, it would be beneficial if you were ready to compete against other businesses and startups.
Partnering with organizations that have similar goals to your own is one way to get the upper hand on your rivals. For instance, it is essential to collaborate with a business with experience in the blockchain industry if you want to develop an application that incorporates blockchain technology. As a result, none of your businesses will have an advantage over the other, as you can work together to support each other’s business growth. Additionally, by doing this, you can benefit from one another’s achievements and disappointments. Through this kind of relationship, you’ll gain more knowledge about what’s effective and ineffective in this sector.
Conclusion
2022 will be a promising year for the founders of crypto and blockchain startups. Many initiatives that failed to survive the 2021 crisis have cleared the way for upcoming projects, and healthy competition among projects is thriving. I believe the success of a project will be determined by the community, the trust of the users, and the ability to integrate new features. Satom Venture Studio can assist you with blockchain application development, provide advice on business strategy and provide cost estimates for blockchain application development.
The blockchain world moves at a frenetic pace of innovation, with new platforms emerging, new features being added, and new releases. So don’t miss the chance. Satom Venture Studio provides support, helping startups on the blockchain, especially in the Web3 area. Contact us at hello@satom.vc.
