This technology could revolutionize your professional life and improve your finances. This article is for you if you want to start a blockchain-related career and want to know how to get started. Get started with investing on the Bitcoin Prime platform immediately, where you’ll find investment opportunities, as well as expert-authored blogs and articles.
Blockchain is a technology that allows people and companies to share information securely and transparently. Creating a new blockchain involves several steps, but they work together so that the system can store data and conduct reliable transactions between users.
This technological platform is being used for the creation of new companies. Some Blockchain-based businesses are Bitwage, Bitcoin Teller Machines, and Ethereum, among others.
On the other hand, this platform is considered the technology of online transactions and the exchange of value; it is becoming an effective way of financing businesses. Therefore, it is one of the main reasons entrepreneurs should consider starting a business with blockchain.
Blockchain business models
A blockchain business model can be defined as a set of rules, norms, and procedures that allow the integration of legal needs with the technical characteristics of the protocol to create and give value to its participants.
They are a new way of projecting the creation of value. A business model through blockchain allows us to reduce operational and financial costs.
Technology allows the development of products and services that did not exist before or was very expensive, such as instant transactions without intermediaries or decentralized systems without physical servers, which could be considered the most lucrative business in history.
The blockchain business model is based on the idea that participants must trust each other. A lot is known about how blockchain-based business models will work. However, some pictures can inspire entrepreneurs interested in this type of technology.
Traditional business model
The typical business model, which is the best known and which we are all familiar with, is based on an intermediary acting as a seller and buyer of products or services.
In this case, the intermediary does not offer any added value to the client but plays the role of “intermediary” to be able to sell their products or services, in many cases without the need to use technology as a basis.
The traditional business model is an organization that has existed since at least the Middle Ages. In this form of organization, individuals come together to create a project that will allow them to generate a benefit from the shared and cooperative use of resources.
For example, if you want to sell your house, you will first hire a real estate agent. The agent is responsible for finding buyers for the property and negotiating the final price. In other words, it provides services not available in a decentralized marketplace like those offered by blockchain technology.
For many entrepreneurs, the traditional business model is the one they know best. It means it is an idea for a new product or service that tries to compete in the current industry and offer something different.
Blockchain-based business models combine the advantages of the traditional market with the benefits of cryptocurrencies, such as decentralization and security.
The intermediaries in the traditional market are necessary to organize the transactions between the participants in commercial operations. In this model, entrepreneurs have to deal with the management and administration of the process and the high associated costs.
Blockchain Business Types
- Exchange and purchase of tokens
Entrepreneurs can use this model to create new ways for their customers to buy and sell products and services. The system works by issuing and selling tokens, which can be sold in a secondary market like any other financial asset.
Investors buy tokens to earn a return when prices rise. In this model, the profits are attributed to the permit owners, not the blockchain project itself.
- Creation of development platforms
Development platforms are websites that allow users to create their decentralized applications. Users can also access and modify the source code to improve the system. Development platforms are essential to the blockchain ecosystem and offer an easy way to create new services and products.
A few years ago, people were still determining what this technology was. Now, it is present in all kinds of industries, where it is possible to create decentralized and distributed systems based on mutual trust between the participants.
It enables the exchange of data and transactions without intermediaries or traditional financial entities.