Freddie Achom on the Opportunities In Blockchain for Startup Entrepreneurs and Investors
Blockchain is the digital advancement of the financial world. Future growth depends on this technology. The question is: what is blockchain? It is an online database where huge amount of public data is stored. The information is stored under a variety of data servers. Those are connected to the main server. Identities are kept private through cryptography.
The features of blockchain which have made it the most famous investment are the fact that it has features to overcome weaknesses of current system. Following are the major benefits of investing in blockchain:
- No transaction cost
- Digital identities
- Easy to maintain
- Security of transactions
Blockchain has made everything possible. Many business niches are benefitting. The fact that it can provide a variety of solutions makes it the best technology to adopt. It makes it easier to detect and recall faulty products or track a product or service all along the supply chain to verify its source or heritage.
The real potential of blockchain is expected from existing companies or start-ups that actually build new platforms or market places in the future. Many industry experts agree that crypto and blockchain technology has the potential to disrupt every business and industry. In fact, this is one of the things that makes blockchain so attractive to entrepreneurs and investors and how it presents so many opportunities.
Blockchain is going to push industries and businesses forward in new ways
The blockchain has a built-in-mechanism which is a major incentive for consumers and enterprises to move away from their traditional products. Blockchain can completely change the way how traditional products and systems work. This is also the specific aim of blockchain start-ups, disrupting the specific mission of established systems to earn a significant share in the market.
The biggest challenge for blockchain at present is to overcome its lack of proven success. This makes it difficult for blockchain startups to gain traction and raise investor capital.
Moreover, the start-ups are faced with the pressure to prove a blockchain model and deliver value to investors regardless of the target market. Blockchain startups must act similar to public companies in order to keep investors supportive and happy. Private non-tokenized companies can leverage the press to their advantage with announcements of partnerships. But this should not be done continuously because their valuations are private and only move ‘publically’ during inflection points like funding and acquisition. Accept that this is the new paradigm and prepare a sophisticated strategy to ‘under-promise and over-deliver.’
The experts of this industry agreed that the blockchain space was not as easy to navigate as some would hope. It comes with its own set of challenges and only the most innovative and transformative companies will find success there. They also agree that if your company has the potential to make major, disruptive changes in the industry, the best time to enter is right now.