Market Trends: How To Start A Business In Blockchain?
Blockchain is one area where social implementation is progressing. On this page, for those who want to start a business in the blockchain area, you will learn about the market characteristics and current trends.
Also, those who want to launch blockchain-related services in the future can join us to get more ideas about it. So here we begin…
What are the characteristics of blockchain?
First, let’s define the features of blockchain.
Originally developed as part of Bitcoin, it was born as a technology to record all transactions such as “who sent Bitcoin to whom”. Simply put, it’s a “laser”.
Transaction records recorded in the ledger can be examined by anyone with a terminal connected to the Internet. Blockchain is therefore considered a highly transparent technology. Entries in the ledger are performed by computer calculations. And at that point, the transaction is recorded as “correct” by a majority vote of participants in the blockchain network.
Thus, using blockchain, it becomes possible to manage data autonomously, trustlessly, and without tampering and without a centralized administrator.
The phenomenon of launching businesses in the blockchain space
We want to launch several initiatives on how blockchain is being implemented in society.
First, we will introduce an initiative to share information on insurance application data using blockchain.
Customer data, such as application documents for insurance companies, is managed on a centralized server, so there was a risk of falsification.
Insurance company Mitsui Sumitomo Insurance has launched blockchain through a partnership with BitTyler. As on-chain data cannot be tampered with, it is expected to improve security and streamline the process of verifying insurance application documents (details).
Next, we will introduce a business case for managing ownership through blockchain.
Traditionally, real estate has a lot of paperwork that requires manual labor. Also, there is a problem that transactions are prone to fraud.
Thus, by registering land ownership on the blockchain, there is an expectation that it will be possible to improve the transparency and liquidity of property information, as well as transactions that cannot be lied to and are not fraudulent.
Although it is still in the demonstration phase, countries around the world are launching projects to record land ownership on the blockchain.
The third is an example of a project that enables secure electronic voting.
The need for “Electronic Voting” to improve the efficiency and convenience of elections is discussed. But, introducing electronic voting was difficult. Due to the risk of hacking.
On the other hand, by using blockchain as an electronic voting tool, it is possible to create a system that makes tampering almost impossible.
In the 2020 US presidential election, there was a scene where blockchain was used. Blockchain-based voting was also used in the 2019 Moscow regional elections.
Finally, we will introduce NFT-certified smart locks.
The office entry/exit management system has a smart lock called “Akerun”.
A demonstration test of a smart lock “only NFT holders can enter and exit” combining NFT authentication using Akerun and API linkage has begun. This will lead to active activity not only online, but also offline by DAOs, communities, and membership salons (details).
Also for these, innovation is expected by incorporating blockchain into existing industries such as sharing economy, marketplaces, and logistics.
How to Start a Blockchain Business
After reading this far, we think you can see how blockchain is being applied to society. On the other hand, you don’t know what steps you should take to start your own business using blockchain.
Here, we will specifically summarize the points that can be made as steps to move to the next phase during the year.
Don’t gather information to start a business in the blockchain space alone.
The blockchain area is a rapidly changing area. If you can’t make time to input for 2–3 months, you will be out of step with time. Because it is such a market, it is difficult to understand the state of the industry and start a business on your own. Even if you can gather information with full commitment.
Our recommendation is to put yourself in an environment where you can grasp the news and business cases that attract attention from time to time. You can gather information efficiently by watching industry key people’s transmissions on Twitter as a routine.
Even for those who spend time inputting the blockchain area and understand the flow, it is very difficult to build a product on their own. There are programming languages for building applications (DApps) on blockchains like Solidity. But there is not enough information to learn easily like HTML and CSS.
Thus, if you want to start a business in the blockchain area, it will be useful to join the community and recruit friends efficiently.
Depending on what you want to build, if you have members who have learned a language that can handle smart contracts or people with experience in marketing and sales, you can work together to shorten the time to start a business.
In conclusion, it’s not too late. Blockchain itself was born in 2008, and since the beginning of 2022 people’s perception of blockchain has changed and the number of products is increasing.
On the other hand, those who have acquired basic knowledge and have a track record of engaging in business by 2022 will influence the industry in the future and create businesses with high entry barriers like other industries. If you want to enter, now is your chance.
Suitable people to start a business in the blockchain area
Now that we know about starting a business in the blockchain area, we will summarize the characteristics of people who are suitable for starting a business in this area.
Currently, there are no services in any industry that use blockchain. It is suitable for those who want to find problems and create a new worldview in such areas.
There are already “dominant” companies in existing industries and there is a problem that barriers to entry are high in terms of capital and brand.
Also, on the Internet, GAFA and others are filling platform business seats on social media. In contrast, the blockchain industry is still in the demonstration phase. The service has been released and discontinued at the speed of breaking bamboo. But some of them will be products that will be the next generation of Google.
The blockchain industry is characterized by rapid change. Common sense a year ago won’t work a year from now. If you like to get information and learn new things every day, then you may be suitable to start a business in the blockchain area.
In the blockchain area, there is a new form of organization that replaces DAO-like organizational management with smart contracts instead of corporations. This will be a free and more gig way of working, but it’s perfect for those who want to challenge new ways of working, like getting paid from a DAO or working in the metaverse.
In the future, there is a possibility that this will be a way of working that uses English to work on DAOs around the world.
Risks and solutions that exist when starting a business in the blockchain space
At the beginning of 2022, the government announced that “Web3 will be a national strategy”. But politicians’ understanding of new technologies and procedures and laws is still insufficient.
In particular, there are issues like taxation when raising funds with tokens. As a result, excellent domestic start-up entrepreneurs also face difficulties in moving to Dubai and Singapore.
The rules are still vague, and it’s hard to judge where the line is crossed. Thus, when starting a business in the blockchain area, it is recommended that you do not proceed on your own, but involve experts in the creation of a product.
A blockchain field is one where numerous opportunities are being created amidst massive change. Don’t hold everything in your hands and challenge yourself to start a business in the right environment. If you are interested, please join us knowing the details!