Are you familiar with blockchain technology? First introduced by cryptocurrencies and later adopted in different sectors that want to benefit from this new way of data storage and transfer. To provide you with some context, according to Fortune Business Insights, the global blockchain market grew to around $5 billion in 2021, almost going two times over its value in 2020. Those indeed are impressive numbers and may spark the question of how to launch a blockchain startup in the more innovative of you. If you want to delve into this fast-growing and exciting sector, you can definitely do it in 2022, as now even academic establishments offer education for blockchain developers. But if you’re not knowledgeable in technology enough and still want to get into this business, you can do it by starting your own blockchain company and hiring other developers to do the technical work on your behalf.
Here we’ll take a look at how to launch a blockchain startup in 2022 – the things you should consider, as well as some ideas if you really decide to go with this venture.
A Short Explanation: What Is Blockchain Technology
If you answered “no” when we asked earlier if you know what blockchain technology is, don’t worry, we’ll cover that now. Here we’ll explain in a very summarized matter what blockchain is about to help you decide if you really want to get into it or not.
A blockchain is composed of a chain of chronologically interconnected blocks that contain information, a hash. The hash consists of data about the timestamp and the transaction data and the time information is used to prove that the transaction existed when the block was published to get into the hash. The blocks are built to comply with cryptographic rules and the way they work is that you can’t alter a block on the chain without affecting the whole chain. That’s why this technology is referred to as more secure or transparent compared to other similar ones because, in a blockchain, you can’t easily manipulate information. Another benefit of the technology is the peer-to-peer environment it provides for users, meaning all participants in the network have equal rights in it, none is above the others, and none can influence the blockchain more than another can.
What Are the Reasons to Learn How to Launch a Blockchain Startup?
After our short explanation about blockchain, we’ll list some of the reasons that may make you wonder how to launch a blockchain startup. There are many others, however, we’ve listed some of the most popular ones.
There Are Different Types of Blockchains
You can decide between a variety of different blockchain types when looking at how to launch a blockchain startup. Some examples are choosing between a public or a private blockchain, hybrid blockchains, or sidechains. You can research any of the mentioned types of blockchain and pick one that suits your future business needs best.
Multiple Uses of Blockchain Technology
If you want to deal with cryptocurrencies, learning how to start a blockchain startup would be natural, since digital assets were the ones to introduce this technology and still are its most active users. But if you don’t want to make your own coin, you can take advantage of its other uses, including financial services, smart contracts, domain names, supply chains, as well as games.
Many Sectors Can Benefit From Blockchain
As mentioned, you should most definitely look up how to launch a blockchain startup if you want to deal with crypto. However, the technology has been widely adopted by various different sectors since it grew in popularity, thus making it possible to launch your company in other fields than digital assets. For example, you can use blockchain in different financial technology (fintech) instances, it has uses in Web 3.0 and in the Metaverse too. These are three very fast-developing sectors that you can take a part in if you decide to launch a blockchain startup in them. However, blockchain technology isn’t only used in digital sectors, many traditional ones have also used it or announced their plans to somehow use it in their field of work. That’s why you’d have a big variety of fields to pick from when choosing where to situate your blockchain startup.
Before Learning How to Launch a Blockchain Startup: Successful Companies
After learning some of the reasons why you may want to consider how to launch a blockchain startup, we’d like to list some companies that are already successful in their field of work and who actively use blockchain technology in various ways. We’re not doing this to intimidate you or put you off, on the contrary, we’d like to point out the different successful businesses in the field you could look up to. Some of them include IBM, Chainalysis, Binance, Circle, Coinme, Coinbase, Gemini, and Filecoin.
A Guide on How to Launch a Blockchain Startup in 2022
According to data, provided by Techjury.net, 2021 began very strongly for blockchain startups as only in the first quarter of the year the new companies in the sector worldwide amassed $2.6 billion in venture-capital funding. This number is higher than the capital for the whole previous year and though 2020 was a weaker year for all sectors, it’s still quite impressive.
Considering all the reasons we’ve listed, the successful companies, and this promising data, you may be more than eager at this point to hear how to launch a blockchain startup and here we’ll explain how to do it in a few important steps.
How to Launch a Blockchain Startup: 1. Select a Sector
The first step you should take before starting any of the actual work of launching your startup is to decide which sector you’d like to serve. We’ve already said that with blockchain you can get into the center of the Internet by joining Web 3.0, the Metaverse, or cryptocurrencies. But if you’d like to learn how to launch a blockchain startup in a more traditional setting, you’ll be able to do it, since sectors like media, health, insurance, transport, finances, and government also take advantage of this technology. Before you pick the sector you’d like to develop your business in, research the biggest competitors you’d be facing up against in it and any data on their success stories. That way you’d know if you can rival them and maybe take some inspiration from their growth journey.
How to Launch a Blockchain Startup: 2. Decide on a Business Model
Going hand-in-hand with the first step, the next stage of how to launch a blockchain startup is selecting the business model you’ll be building your blockchain onto. There are several from which you can pick, for example, blockchain-based software products, if you want to sell your blockchain software to other companies, or development platforms if you’d like to make a blockchain for building apps on it. You can also pick from P2P blockchain, BaaS, blockchain professional services, and token economy.
There’s a wide variety of options here as well, and you should do thorough research about each of the models to decide which one you’d be able to expand best, bringing something unique to the market that will make you stand out among your competitors.
How to Launch a Blockchain Startup: 3. Find Money for the Launch
You must be able to convince a broad audience of the future potential of your business. That’s needed because you’ll need financial support for your endeavor and if you want to know how to launch a blockchain startup with the help of investors, there are two common options through an ICO and through angel investors. If you pick an ICO, short for Initial Coin Offering, you’ll be offering crypto tokens for sale to people. Through their purchase, they’ll be supporting your blockchain startup and after the launch, you’ll reward them and allow them to be able to vote in the development of your business.
If you don’t want to rely on a wide audience of people, you can seek the help of angel investors. This type of investor supports new companies that they see potential in. They are willing to invest in what may seem risky to many if they realize the idea yields big potential and if you find such support, you’ll be able to fund your blockchain startup.
How to Launch a Blockchain Startup: 4. Hire Reliable Teammates
Let’s say you’ve completed the first steps that we’ve mentioned about how to launch a blockchain startup. Whether you possess technical knowledge or you’re just the person with the grand ideas, you must have a supportive team to execute your idea. The people you choose to build your blockchain must be capable of also maintaining its smooth work in the future, otherwise, you’d have only flashy promises and no real efficiency.
For example, if you look at Solana which otherwise is a great project, you can notice how many investors withdrew their trust from it once it started having issues with its network stability. This can serve as an example that if you hire a team that builds a stable blockchain and is able to keep it up online, then you’ll soon be recognized by the majority as a very reliable company.
How to Launch a Blockchain Startup: 5. Attract Customers
The last step of how to launch a blockchain startup is to tell people about it. Create a reputable website for your business, join social media and maintain an active presence there while engaging with your customers and making sure they know they’re noticed. Before any client or user approaches your new platform you must first let the world know about it. If you do that accordingly and attract the attention of people, you’d be sure to gather more clients than if you just launched your business and waited for people to find it on their own. That’s why you should make sure your online presence is just as highly maintained as your new blockchain, to be able to make people notice you and stick around.
A Bonus: Blockchain Startup Ideas 2022
Now having learned the steps to how to launch a blockchain startup, are you more curious to get into this field? If you’re not sure where to start, we’ll provide you with some blockchain startup ideas 2022-upgraded to serve as a base for a potential new business of yours.
Blockchain Startup Ideas 2022 Involving Cryptocurrency
Of course, cryptocurrency would be your first thought when you wonder how to launch a blockchain startup and what it would be about, right? That’s understandable and you can start a business in the field relating to crypto in various ways, some of which are creating your own crypto token or an exchange, launching a marketplace for NFTs, making a crypto gaming platform or a digital wallet, and crowdfunding or charity-related business with cryptocurrency.
Blockchain Startup Ideas 2022: Besides Crypto
There are other blockchain startup ideas 2022 for you in case you don’t want to deal with digital assets. They include creating a blockchain analysis tool, blockchain cloud storage, using blockchain for e-commerce, or implementing blockchain tools to forecast stocks for trading.
Knowing How to Launch a Blockchain Startup, Would You?
After learning how to launch a blockchain startup and also got some blockchain startup ideas, have you made up your mind? Unfortunately, we can’t guarantee the success of your future endeavor that’s why we’re not advising you what to do but merely informing you of a business option you have before yourself. Startups are very risky and you may lose your funds almost as easily as you can gain more, so please be prepared to act on your own account. If however, you want to do it, you know the basics now and can do a further search for more detailed steps.
How do you expect blockchain to develop? Back when Bitcoin introduced the technology it wasn’t paid much attention to but now that both cryptocurrencies and their tech got popular, blockchain gained a lot of traction. We’re curious to see if it’ll stick around and get even more adopted or get out of use if people stop using so much cryptocurrency.
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