The projected growth of the Blockchain sector is increasing manifold. Let’s find out why they are flourishing?
Crux: Raising capital from venture capitalists or banks or financial institutions was difficult earlier but Blockchain technology has created opportunities for cryptography, consesus, and decentralized app financing (Initial Coin Offerings) or token sales.
Companies are generally able to track products or services from production until distribution via immutable transactions. All stages are in front of the sender and receiver (source and the destination) of the transaction.
If someone asks, as to why are you using blockchain for your startup – answer with the assertion that it offers fidelity and accuracy of data. Transactions are secure and irreplaceable, which implies that no transaction repeats itself. Once done, it is final.
Blockchain is a medium of payment transfer. Bitcoin replicates the money in the real world, and is transferred via Blockchain. One Bitcoin might be hundreds or thousands of USD strong.
Most of the small – medium sized companies have not come into terms with Blockchain yet. It remains a mystery to be cracked by SMEs. But if we count the advantages, it makes the transactions secure, reducing the time to process the payments from days to hours.
Future Ambit
Governments are contributing to the growth of the blockchain market. The increasing demand for e-identity offers the growth of the market. Large enterprises in sectors like insurance, healthcare, financial services, and supply chain are adopting blockchain technology to digitize their offerings. Blockchain technology offers transparency, security, and traceability, which makes it essential for various applications. It also improves payment system efficiency and minimizes operating costs. Blockchain-enabled inter country payments aim to improve transaction processes by mitigating traditional banking issues.
So when the chances of error are nullified by using Blockchain the overall cost of making an app or software comes down. Blockchain helps in money transfer, smart contracts, internet of things, personal identity security, healthcare, non-fungible tokens, government and media.
What else can it do?
Blockchain automates processes, eliminates the need to have banks or insurance companies, streamlines data verification, improving efficiency and speed. It offers solutions that don’t require high fees, or positive credit scores. It provides supply chain companies with enhanced transparency, traceability, and security. Mobile App development companies may think of adopting Blockchain as it also facilitates payment and money transfer, contracts creation and abiding, distributed cloud storage, and protection of digital identity.
How and Why: Unscoping Future With Confidence
Blockchain and other emerging technologies are poised to shape the future of startups in future (lets not quote a specific year here), by enabling new business models, improving operational efficiency, enhancing transparency, and creating entirely new markets – in areas like decentralized finance, supply chain management, healthcare, and voting systems; allowing startups to build trust-based platforms with secure data management and streamlined processes across various industries; essentially providing them with a competitive edge by addressing issues of security, data integrity, and accessibility for customers.
Blockchain’s immutable ledger feature can provide a transparent view of transactions and data across supply chains, allowing startups to build trust with customers and partners, especially in industries like food safety and provenance tracking.
Startups leverage blockchain technology to create innovative financial products and services without relying on traditional intermediaries, enabling peer-to-peer lending, borrowing, and trading with lower fees.
By automating processes and streamlining data management, blockchain helps startups optimize operations, reduce app development costs, and improve overall efficiency in areas like contract management, logistics, and identity verification.
Emerging technologies are also enabling budding startups to create unique customer experiences, personalized services, and innovative product offerings that were not possible before.
Blockchain’s cryptographic security features protect sensitive data and prevent fraud, making it particularly valuable for startups dealing with customer information or financial transactions.
Specific examples of how startups might leverage these technologies
Medical industry develops secure, decentralized platforms to manage patient medical records, enabling easier access to data for healthcare providers while maintaining privacy.
Supply Chain Management tracks product movement throughout the supply chain with real-time data on blockchain to ensure authenticity and traceability.
Voting Systems creates secure and transparent online voting platforms using blockchain technology to combat voter fraud.
Investors can buy portions of a property instead of the whole thing. This is similar to crowdfunding, where an asset is divided into smaller portions. Tokenization streamlines the transaction process by reducing the need for intermediaries like brokers, escrow agents, and title companies. This cuts down on costs and speeds up the transaction process.
Such tokens can be traded on secondary markets, similar to trading stocks on an exchange. This offers much awaited liquidity anticipated in real estate industry. Smart contracts automate the transfer of ownership rights during a property sale. As a result transactions are seamless. The type of token used depends on the goal and what’s being tokenized. Non-fungible tokens are useful when a property is considered as a whole, while fungible tokens are useful for fractionalizing a property into parts.
Difficulties in Adoption
One main concern faced by organizations in adopting Blockchain for their startup businesses was non availability of skilled developers who could learn and iterate the process for the purpose of their work. Users do not trust startups with Blockchain yet, because it is difficult to learn and implement in the first place. We cannot hold anyone accountable if something wrong happens.
Succinct Takeaway
Blockchain and other emerging technologies are disrupting existing markets, and creating new business models by leveraging the advantages of transparency, security, and efficiency inherent to these technologies. Besides VR, AR, AI, and IoT – neuromorphic computing and advanced robotics, and generative AI are also shaping the future of emerging startups but their success largely depends upon societal acceptance and cultural adaptation. It will require a collaborative approach among technologists, policymakers and the public.
