Blockchain technology has emerged as a powerful technology that can transform how businesses operate. The concept of blockchain was once overhyped but soon turned into an inevitable aspect of our daily lives. Even businesses and governments are leveraging blockchain technology to improve efficiency and security.
A recent study revealed that the global market for blockchain technology is projected to attain a value of $1,235.71 billion by 2030. Also, As several renowned companies use the technology for various crucial tasks, it shows that the technology is getting more relevant on a global scale.
Although some enterprises have already adopted blockchain technology, startups should also leverage its potential with entrusted blockchain app development company. Through this article, we will explore the world of blockchain and its potential impact on startups.
What is Blockchain Technology?
Blockchain is an emerging form of database that facilitates transparent information sharing between companies. This system stores information in blocks linked together in a chain. All data in every block of a chain encrypted so that it can’t be changed or deleted without everyone’s consent.
Furthermore, this ensures data consistency and reliability. Blockchain technology keeps track of orders, payments, and transactions securely and can’t be exploited by hackers. There also security features built in to prevent unauthorized access and ensure everyone has the same information.
The Future Impact of Blockchain on Business
Blockchain-based technology can introduce new and innovative ideas while integrating existing ones. Since blockchain development has made a significant impact on almost every sector, stakeholders are now able to transact securely without involving intermediaries. As blockchain technology is expected to substantially impact every industry, it is crucial to stay on top of its developments.
In general, blockchain’s decentralized, reliable, and trustworthy record of data and information, play a key role in the development of modern technology in the years to come.
Several predictions have already been made about its potential:
- According to Statista, blockchain investment will reach $19 billion by 2024, so companies are investing in blockchain development and realizing its potential.
- Blockchain technology is growing, and by 2030, it will generate $3.1 trillion in business value worldwide. Plus, blockchain technology will drive 10% to 20% of the world’s economic infrastructure in the next decade.
- Blockchain technology is set to revolutionize the Internet of Things (IoT). By 2026, blockchain use for IoT will create a market worth USD 2,409 million. This is because more and more people are getting into this new tech.
What Can Blockchain Technology Do for Your Startup?
The blockchain will transform the startup ecosystem. Here are some of the ways it will do so.
Developing Trust
The blockchain technology eliminates intermediaries and third-party verification, creating a secure and transparent record of all transactions. This trustless environment significantly reduces fraud, scams, and data breaches.
Thus, businesses can use blockchain transactions to build trust among customers, partners, and stakeholders because they are authentic and stable. Having this capability allows startups to build trust and lay the foundation for growth by demonstrating their authenticity more easily than their competitors.
Decentralized Identity Management
Blockchain technology has the potential to facilitate the development of decentralized identity management systems by startups. The storage of personal information on a blockchain enables individuals to gain a greater level of control over their information and grant restricted access to trusted parties. Using this approach reduces security risks and enhances privacy by eliminating the dependency on centralized identity databases.
Enhanced Supply Chain Management
The use of blockchain technology in supply chain management can streamline processes, improve transparency, and reduce costs. Blockchain lets businesses securely and transparently track and record each stage of the supply chain, from production to delivery. This helps detect discrepancies or fraud in real time, ensuring supply chain integrity. Blockchain can also automate supply chain processes, reducing manual errors and increasing efficiency.
Moreover, blockchain can reduce startup working capital requirements by speeding up payment settlements.
Smart Contracts and Automation
The term “smart contract” refers to agreements that utilize blockchain technology to execute automatically when predetermined conditions are met. Using them, startups can automate various processes, such as royalties, supply chains, and customer loyalty programs. The smart contracts implementation not only reduces manual errors, but also minimizes labor costs and provides a time and resource saving benefit to businesses.
Tokenization and Crowdfunding
The advent of blockchain technology has led to the emergence of tokenization, a process in which digital assets such as cryptocurrencies and non-fungible tokens (NFTs) can be used to represent ownership or rights. In exchange for investor contributions, startups can raise capital through crowdfunding by tokenizing their assets. With this decentralized fundraising approach, startups have an alternative to conventional startup capital funding.
Data Privacy and Security
Startups can benefit from advanced data privacy and security measures by implementing blockchain-based systems. Using a distributed network, startups can encrypt and store sensitive information securely, which prevents unauthorized access or manipulation. Through this approach, customer data is not only protected, but also customer trust is fostered.
Advertisement and Promotion
When a startup is trying to get noticed and build a customer base, it’s really important to promote itself. But advertising can be expensive and sometimes not very effective. Luckily, emerging blockchain technology can help businesses promote themselves more efficiently and at a lower cost.
In essence, blockchain can improve the entire process of advertising, which is good news for startups and anyone seeking to advertise.
The Challenges Startups Overcome
- Complexity of Regulations
The biggest challenge for blockchain adoption is the absence of regulatory frameworks that protect entrepreneurs. Although several regulations have been put in place to promote blockchain adoption, there are no legal regulations. Though efforts are being made to address the issue, appropriate regulations may take some time to come into the picture.
- Access to Legacy Systems
The key to leveraging blockchain technology is to set up a Distributed Ledger Technology (DLT) infrastructure, which requires both technical knowledge and money. The best way to handle this challenge is by investing in skilled blockchain developers who can integrate the technology into existing systems and implement it on a smaller scale, rather than deploying it all at once.
- High Hack Incidents
In recent years, blockchain hacks have resulted in individuals losing millions of dollars due to their frequent occurrence. Therefore, security has emerged as the primary concern impeding the adoption of blockchain technology in enterprises.
The alternative approach would be to use a permissioned or private blockchain ecosystem rather than an open or permissionless one. A permissioned blockchain would be much more secure and virtually impossible to hack.
Conclusion
Blockchain technology presents many advantages to startups seeking to disrupt their industries. By partnering with a well-recognized and reliable blockchain development company, startups or even established businesses can leverage their technical expertise, cost-effectiveness, agility, and speed to support their operations.
If your business requires blockchain app development services, Apptunix is the right choice. As a leading blockchain app development company, we specialize in crafting tailored solutions that cater to your business needs. Using our agile approach, we provide custom blockchain solutions that drive innovation within your business. If you’re ready to be the next BIG, let’s talk with experts.