The blockchain application is useful for startups in many ways it is a ledger which belongs to the digital world in which transactions are made in bitcoin and other Cryptocurrency are recorded publically.
The world in which we are living is swiftly undergoing a fundamental change it is becoming more advanced by each passing day. This is not just about the Internet or universal mobile computing, this change is all about the societal systems from top to bottom, in respect of every thigh being qualitatively more quantified and efficient, and also more transparent and accountable. This changes not only the economics of systems but their management and funding. It obscures the lines between every transaction. One can easily find out what’s happening around, and so everyone gets to have a role in shaping these new systems.
Cryptocurrencies are a digital currency, in which fine techniques are used to standardize the generation of units of currency and authenticate the transfer of funds, operating independently of a central bank, also it provides an outlet for personal wealth which is beyond confiscation.
Initially, startups and entrepreneurs likely won’t deal with blockchain unless they are working on a project that involves a larger company. It is more useful and beneficial for startups and entrepreneurs.
- Dash is the founder of Cryptocurrency, he became frustrated after trying to introduce innovations to Bitcom. I see take a glimpse at the origin of Dash you will get to know why governance plays a huge role in the project
- He was not able to clout the little group of influencers in the Bitcoin world in order to improve what he has envisioned and then he decided to just bifurcate the code and begin a new cryptocurrency.
- Then the struggle with full of experience made him incorporate a blockchain-based, decentralized governance system
- The owners of the 2nd-tier of the network (Masternodes) enable to vote through the blockchain on proposals to improvise or change Dash. The entire developers still make the majority of decisions affecting the code.
- The Bitcoin blockchain has proven to be stable through more than 7 years of continuous use, and its reliability has led many developers of blockchain products to propose free-riding upon the Bitcoin network through a strategy known as “colored coins.” To transfer an asset, such as a share of stock, one could initiate a bitcoin transfer from the seller to the buyer involving a trivial amount of bitcoins.
- Transaction in an additional data field could be a “token” such as the share of stock. Miners would then bundle up the transaction into the next block, and the record of the bitcoin transfer would also serve as proof of transfer of the stock. Although this strategy seems appealing because it saves development cost and takes advantage of Bitcoin’s reliability, it raises a number of legal and enforcement issues since the Bitcoin network was designed to transmit only bitcoins themselves and may not be suited to the special characteristics of other assets.
- These issues are explored in a recent paper by Swanson (2015). Alternatively, a company could sponsor its own blockchain and either update the blockchain itself or establish an incentive system attract miners from outside.
- Blockchain is a digitized, decentralized, public ledger of all cryptocurrency transaction
Blockchain application adoption and growth
Blockchain application is becoming a business focus for many companies. Manufacturing, technology, bank, media etc. most likely to already have blockchain project in production. A new study founds that ⅓ of C level executives are adopting blockchain technology.
For new startups, it is more beneficial because it provides new transaction application that provides accountability, transparency among the organizations and partners.
The opinion of leading companies and banks about blockchain technology
Deutsche Bank is exploring various uses of blockchain in the areas given below:
- Payments and settlement of fiat currency
- Assets registries
- Enforcement and clearing derivative contracts.
- Regulatory reporting
- Improving post-trade processing service etc.
It claims to have 20-25 use cases for blockchain and have a team ‘crypto 2.0’ to research the use of blockchain in banking to improve the day to day process.
How is blockchain useful for startups?
Blockchain technology provides various opportunities to financial as well as nonfinancial players.
To store digital contracts that are transparent and self-executable transaction a blockchain is a good instrument. It can be connected to GPS gata which automatically releases the payment to the buyer and the supplier when the package arrives. With the help of computer control over the contract startups and entrepreneurs can make their business more efficient and legal system more equitable. It is a great option to enforce all the parties in a contract without the added expenses.
Digital identity can be applied to people as well as for things. It can easily find the right device and helpful in obtaining fruitful information. Entrepreneurs are able to choose how to identify themselves and who will be informed. Blockchain cut out the middleman and provide every company in the network access to the same source of the right information. Blockchain technology makes tracking and managing digital identities which help in reducing fraud.
Usually, the transfer of value is a slow process and more expensive especially in the case of cross-border payment. Blockchain not just only simplifies the process but also reduce the cost. It simplifies the process by cutting out the many middlemen. The blockchain reduces the cost up to 2-3% of the total amount and provides a guarantee, real-time transactions across the border.
Many middlemen are involved in buying and selling stocks and shares such as:
- Broker, and
- The stock exchange itself
Blockchain creates a decentralization and secure ledger that provides:
- The validation of transaction
- Speed up the settlement process
- Allow for greater trade accuracy
Loyalty and rewards
Many benefits are offered by blockchain such as:
- Traceability of transaction
This helps entrepreneurs to create more loyalty and rewards programme for a better performance of management and enhance engagement.
The low transaction for securities such as equity up to 10% is subject to numerous errors leading to manually intervention and the to settle trades it becomes more time consuming.
By the help of blockchain the settlement of:
- Cash securities
- Equities, and
- Leveraged loans
The industry could save around $11 to $12 billion in fees, capital charges, etc.
Blockchain startups in 2017
It is platform and a programming language which can be used to codify, decentralized, secure and trade:
- Domain names
- Financial exchanges
- Company governance
- Intellectual property, etc.
It is a distributed financial technology that allows international payment across the network and receiving benefits from the speed and security of blockchain application, also with the help of blockchain, it is able to improve their cross-border payment.
It is blockchain business which is designed as Smart Ledger Technology for:
- Asset management
- Capital market
- Reinsurance and trading, etc.
World’s data on the decentralized system is stored by factum with the help of blockchain technology for a solution in various fields:
- Mortgage industry
- loT device integrity
- Digital assets, and
- Database integrity
It is an infrastructure technology company that enable its partners to transfer and issue financial assets on blockchain network. It is building a suit of blockchain-based tools for banks, stock exchange, credit cards, etc.
It enables the costumes to deploy blockchain technology to innovate and transform their business as it is a customizable platform.
By Akanksha Singh