If you are starting up or scaling a Blockchain-powered tech startup, this is for you.
Blockchain offers significant benefits from increased security; reduced transaction times that drastically cut costs and reduce errors; traceability so you know where your products come from or go without paperwork—to name just a few things Blockchain has been proven capable of achieving.
The Blockchain industry is still in its nascent stage and has room for many new entrants. The open-source nature of the technology is challenging a system that largely favors industry giants. Many Blockchain startups are working on bringing mainstream adoption to the newly minted industries such as cryptocurrency, Non Fungible Tokens (NFTs), Smart Contracts and more.
Our Blockchain product managers have compiled the best practices outlined in these pages with semi-technical founders in mind; and is inspired by some of our most successful startups clients from recent years!
Starting a Blockchain startup may seem like it’s too hard at times because the competition is so tough and there are tons of projects that look similar to one another; however, when all has settled out, only those who persist will have survived.
Blockchain is an exciting technology that can be applied to a variety of industries, but it’s important not to get overwhelmed with hype. Within the next few years we’ll see only high-quality projects survive and there will be chances for them to grow into tremendously successful ventures.
Though there are many ways Blockchain can help your business, it’s equally important to consider some of the disadvantages of Blockchain technology when deciding if it’s right for your company.
The Blockchain environment is a complicated one, and it’s important to understand why so many businesses in the space end up throwing in the towel.
Blockchain technology is a key piece of the digital landscape and its open source nature should be exploited to ensure that your project funds are not stretched too thin.
Even audited smart contracts have been exploited recently, and there is a high chance we will see more of such breaks. There are many ways that your token could be exploited if you rely too much on the incentives of DeFi yield farming or liquidity mining, so make sure to take necessary precautions to hack-proof your token. Otherwise, the sudden, deep losses and chaos may cost you the trust of your users, as well as the value of any tokens left for development purposes.
The regulators are circling for new reasons to scrutinize Blockchain projects, specially crypto asset. After Ripple’s XRP faced a series of delistings, some investors may realize that it is rather risky because the SEC will come after them with lawsuits if they pick poorly on jurisdiction, for instance. Make sure you do your research before investing in any token or startup as there have been many cases where these projects get shut down by authorities when trying to break into traditional financial systems such as securities law violations.
IEOs (Initial Exchange Offering) are a new way to raise funds in the blockchain industry. It’s a great opportunity for startups that need funding. IEOs allow Blockchain startups access to an influx of capital without needing go through the arduous process of setting up their own ICO! Of course, you will want to capitalize on this trend as quickly as possible before interest dies down.
Using an IEO offers many advantages. The Exchange provides professional due diligence and guarantees project quality as its own reputation is at stake. You can enjoy a community of crypto enthusiasts who already understand Blockchain projects. An exchange wallet will offer your contributors more confidence in investing with you, while participants worry less about sending funds to the wrong address or personal wallets being hacked – peace of mind all around!
Even in your alpha stage, you should be generating revenue. You don’t have to have a perfect product to start with. The first step is levying minor fees on platform users so that as soon as the money starts trickling, it can keep moving forward at a reasonable pace and not get lost because of lack of funds this early on!
At the same time, loyal users will contribute ideas and suggestions to improve your product. You will need to make a compromise between accumulating massive revenue and attracting new users. Your startup is more likely to succeed if you have more users – large initial revenue doesn’t guarantee continued success.
As a startup, you should reduce overheads as much as possible. Spending on a spacious and luxurious office is not necessary- many startups feel they need to do this but it increases overhead costs which prevents them from reaching other revenue producing objectives
As the decentralized economy continues to see strong progress with startups, it’s important for companies to embrace this. It has been shown that remote workers and freelancers can be more efficient than traditional employees in a workplace setting.
Crypto startups often face a tough challenge convincing users that they’re here to stay.
We advise new startup founders to think hard about their token economics, incentives and potential activity. Afterward, they should focus on building up their user base through an intuitive product with well-thought out features that are focused around the needs of the end customer or investor.
You don’t need to be an expert in the technology itself. But understanding emerging consumer needs, privacy, ownership of data, will help you predict where and how to position your Blockchain startup to get funding or find customers.
Blockchain adoption is close, but not there yet. If you want to use your token as the only way for users to access resources on your platform it could be a poor business decision. This may push them away and affect how much revenue you can generate in the future
By using MTBE (Multiple Token Business Ecosystem), you are looking at an all-inclusive blend of both Fiat and cryptocurrency. A blended approach allows your startup to be open to the whole world while also being able to take advantage of highly liquid cryptocurrencies like Bitcoin and Ethereum as well as our platform’s native currency – which means accessibility for everyone!
There are many ways blockchain can help your business, but it is important to consider the disadvantages of Blockchain technology before deciding if it’s right for you.
Here are some examples:
Are you looking to scale your Blockchain company?
Do you want to start a new venture that uses Blockchain-backed solutions for customer experience improvements?
If so, let’s discuss how we can revolutionize your startup or scaleup venture with Blockchain-backed solutions.
VezTek is an expert in smart contract development and optimization, audit, and security.
Our Blockchain experts will help you navigate this new frontier and give you a competitive edge in your industry.
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