How to Start Blockchain Startup: 3 Basic Steps
Media outlets are full of stories depicting not only successful crypto investors but also successful crypto entrepreneurs who launch their own startups and thrive. As much as blockchain is still a nascent industry, there are thousands of new coins available right now for buying, selling, and trading at exchanges like CEX.IO. Taking a look at the market cap, even if we take some average coin, it becomes inspiring to wind up being an owner of a brand new blockchain.
However, creating a tech startup is not that easy. If you take a look at some ratings of the promising coins of 2014, chances are that you won’t find any of those coins existing up until now. Why? Because those coins were created without the necessary strategy that would ensure their growing or at least maintained market demand over the years to come. Certainly, the unpredictability of the crypto markets is a huge risk factor that might set you up for failure if you have been aspiring to launch a blockchain tech startup.
So, what are the basic steps to take in order to create a successful blockchain? Let’s look at the top 3 steps that probably will not ensure your huge recognition worldwide but at least will minimize chances for a daunting failure.
Find pain points
Just like any other business, blockchain needs to solve some problem or be anyhow related to the existing market needs in order to succeed. It’s not enough to just issue a number of tokens and expect them to hit the price charts. First of all, because there are thousands of tokens out there already, so the competition for the market is much more than it used to be back in the days when Bitcoin and Ethereum were introduced.
Today, you need to look further and try to recognize the pain points that other popular blockchains do not address. If most of the large-scale demands are mostly met (like the issue with stuck transactions, high network fees, etc.), then you need to look for some unmet needs in the niche markets. Thing is, there are so many industries where some particular blockchain could appear useful.
For example, oil supplies, green energy, healthcare, education, aircraft, automotive, forestry, and so on. It’s highly likely that there are industries that have some areas in which they struggle to keep up the pace in the face of the present challenges. If you resolve those issues with the help of your blockchain, it means that your product will experience demand. As a result, you can supply tokens and make them fairly tradeable on the market.
It is good if you manage to find not only developers that are skilled in building blockchain code but also professionals who are able to look at your project from different perspectives. For instance, these could be professionals from industries like government, real estate, finance, statistics, academic field, and so forth.
The top-level analysts and architects should be able to help you build solutions that are going to meet the business needs of case studies that you set up in your business plan and strategic view. Essentially, blockchain is a large distributed database that is capable of growing on its own, without any facilitation from a central authority. Since all those growth capabilities depend on the individual participants involved in growing the network, you need to make sure that all these people that you don’t know will be interested in contributing to your blockchain. Therefore, it should represent enough value for them to make any effort.
Set up a working process
Sometimes when you running a business in a high-paced technology world, you need to turn ideas around as quickly as possible. The working process should be inviting for that. Usually, most developers agree to create an MVP (minimum viable product) and then test it to determine whether they created a viable product or not. If something doesn’t work as planned, they redo the weak parts or ditch the whole concept and come up with a new one.
Consider working one step at a time. They say that one way to eat an elephant is to do it bite by bite, so even the most ambitious goals can be reached if you take it step by step, considering your present resources and trying to increase those to be able to achieve more. At the same time, consider discarding too complex strategies in case if they don’t bring as much value compared to the effort that they require. For example, you could build a blockchain on an existing platform like Hyperledger or IBM, instead of building a blockchain from scratch.
What’s more, in this case, you would choose a solution that many of your prospective clients are already familiar with. This way not only you would save on your material resources and time but also you would ensure a low adoption barrier, making a seamless integration that is easier to work with. This could be the right strategy for you as a startup to kick off and start operating. You can also review your architecture down the line and issue a new version of your blockchain if it will be needed in the future.
Out of all the businesses that are popular as startup ideas, blockchain is a toughie. Yet also, just like many tech startups, blockchain holds a huge potential for development. To launch a successful startup, you need to think through different scenarios beforehand and be ready for any unexpected circumstances as well.
How to Start Blockchain Startup: 3 Basic Steps