Blockchain Allowing Data-Driven Approach to Create Opportunities with Startups
Written By Stephanie Clarke
Published Date January 25, 2019
While blockchain and cryptocurrency are growing exponentially, the industry is still assailed by a lot of criticism and fear-mongering. One reason is that the Bitcoin actually deregulates government control over the fiat. It gives the power back to the people, so to speak.
Now, the blockchain database technology is being used to closely look at startups like never before.
The vastly superior AI tool of blockchains will drastically improve the analytics, as well as risk management, for companies looking to invest in startups. In the same vein, Ethereum and Aragon have rolled out blockchain solutions for startups that will allow them to raise funds, network with other entrepreneurs, and collaborate with bigger companies.
But nobody said it’s going to be easy.
Wading through the complexity of the blockchain technology can eat up the time of startups or Angel investors. The technology is very disruptive and leaves little room for mistakes. It’s really a high-risk, high-reward endeavor because adopting blockchain ideas for startup companies will allow them to leapfrog past their competitors.
How Technology is Evolving and Benefiting New Companies
Another challenge for blockchain database technology is the misconception that it’s only being used for finance.
Looking at the description of blockchain as a “ledger that vets all transactions and keep a historical record of all digital footprints,” and you get the idea of its potential.
For instance, ShipChain will drastically reduce logistics and shipping issues.
Meanwhile, IOST, which is a spiritual descendant of Ethereum, uses the blockchain technology in order to resolve the problem of scalability. The company is offering a secure infrastructure to allow entrepreneurs, startups, and even large enterprises accelerate the decentralization of their processes.
Another company, ImpactPPA, offers blockchain solutions for startups, particularly in the area of secure payment gateways. The technology is seen to reduce costs and eliminate corruption. Green startups will also benefit from using ImpactPPA so they can connect to socially and environmentally conscious investors.
Benefits of Blockchain Solutions for Startups
There are multiple ways that adopting blockchain solutions for startups will benefit your company:
1. It removes the need to do a background check on employee applicants and potential B2B deals
2. It automates online legal agreements and contracts
3. It provides an open-source platform to raise needed financial capital
4. Eliminates the middle-man
5. Creates more transparency in financial transactions
It can’t be denied that the porous and secretive nature of the blockchain makes it susceptible to being exploited by criminal groups. And the Internet is replete with these horror stories that can make people sit up and take notice of what is happening in this area.
It should be emphasized that blockchain by itself is not a bad thing. It’s a technology that can be used for both good and evil. Blockchain strategy consulting is actually a growing industry that has helped thousands of entrepreneurs and startups get their business to another level by leveraging the core technology of blockchain.
Read more about Blockchain-enabled Strategy