According to research, the global blockchain market grew to more than $5 billion in 2021, almost double its value in 2020 (source: Fortune Business Insights). That alone is a good reason why you may want to get into this sector and wonder how to launch a blockchain startup. But there are other reasons as well, including the massive adoption of this technology and the obvious potential it has.
You’ve got a few options before you if you want to get into this field professionally. You can become a blockchain developer, but you can also create your own company where you can hire such specialists. Here we’ll explain more about this as at the end, you’ll have an idea of how to launch a blockchain startup and some more information to decide whether this is the right path for you.
What Is Blockchain Technology?
In case you’re very new to the field, let’s give you a basic run-down of what’s blockchain technology so you can make up your mind from early on if it’s for you, or not.
Blockchain is a shared ledger in which individual data can’t be altered. It serves to record transactions and tracks assets in a peer-to-peer network. How does it work exactly? Simply put, complying with cryptographic rules, a chain of chronologically interconnected blocks is built. Each block contains a hash about the previous one and you can’t alter a singular block without affecting the whole chain, that’s why the technology is considered a lot more secure and transparent than other ways of storing and transferring data. The hash of each block contains information about the timestamp and the transaction data and the timestamp is used to prove that the transaction existed when the block was published to get into its hash.
Why Would Anyone Want to Know How to Launch a Blockchain Startup?
You’ve learned what’s blockchain all about, are you wondering why you’d need to know how to launch a blockchain startup? If you’re asking us there are plenty of reasons so here are a few.
#1 Different Types of Blockchains
There are different types of blockchains, meaning you have a variety of technology to pick from if you’re looking at how to launch a blockchain startup and picking the technology behind it. You could implement a public or private blockchain, hybrid blockchains, and even sidechains. This gives you the freedom to pick the tech to base your startup on that fits your needs best.
#2 Uses of Blockchain Technology
If you decide to start a company in this field you’ll definitely have a lot to pick from when it comes to what to use your blockchain for. Sure, cryptocurrencies are the obvious example, since they introduced the technology, but you can also use it for smart contracts, financial services, domain names, supply chains, and games, to name a few. If you’re unsure how to launch a blockchain startup because you don’t know what to use it for, these suggestions all seem very valuable.
#3 Blockchain Serves Many Sectors
You’ve noticed the pattern here, right? Blockchain=freedom. And we’re not the first to discover it, many different sectors, besides cryptocurrencies, but them included, of course, have recognized the potential of this technology and adopted it. For example, blockchain is one of the main parts of fintech (financial technology), a driver behind the new Internet era – Web 3.0 and a main component of the Metaverse. Those three fields have so much potential on their own to be enough to have you researching how to launch a blockchain startup and join them. But that’s not all, many other traditional fields also saw the potential and use of blockchain technology and now this way of storing and transferring information is being even more widely used.
Companies to Consider When Deciding How to Launch a Blockchain Startup
We’ve listed some of the reasons why you may want to look up how to launch a blockchain startup and join this growing tech field. To back up our claims, we’ll list some companies that either specialize in this technology or use it as one of its main drivers. We’ll do this in order to provide you with some examples of businesses that so far have been successful and whose backgrounds you can research if you want to start your own blockchain company.
How to Launch a Blockchain Startup: A 2022 Guide
We’ve started with some data about the blockchain market and let’s give you some more about the startups there – 2021 was apparently a very strong year for the whole sector as in the first quarter of it along, the blockchain startups worldwide amassed $2.6 billion in venture-capital funding (source: Techjury.net). That’s cool, right? Well prepared to be even more impressed when you learn that this number is higher than the capital for the whole of 2020! We think we’ve got your attention by now so let’s go over some steps for how to launch a blockchain startup.
How to Launch a Blockchain Startup: Pick Your Sector
As mentioned already, blockchain serves in many fields. You can certainly get into crypto, Web 3.0, and the Metaverse with it. But if you’re looking into how to launch a blockchain startup in a more traditional setting, you’re in luck, since you can get into sectors like transport, media, health, insurance, or government, besides finances with blockchain. So when you’re deciding to launch your own company, first think of what sector you want to develop in and then move on with the next steps.
How to Launch a Blockchain Startup: Select a Business Model
Say you’ve decided what sector you want to use blockchain technology in. The next step in how to launch a blockchain startup, which you should take almost at the same time as the first, is to select a business model that it’s going to be built on. Some popular blockchain business models you could consider include:
Types of Blockchain Business Models
- P2P Blockchain Business Model
- BaaS (Blockchain as a Service Business Model)
- Blockchain-Based Software Products
- Development Platforms
- Blockchain Professional Services
- Token Economy – Utility Token Business Model
Here you should really take your time and decide what you’ll want to be doing with your business. Would you like to sell blockchain software to other companies? Then the blockchain-based software products business model is for you. Or perhaps you’re looking at how to launch a blockchain startup because you’re eager to build apps that make blockchain even more popular? In that case, you can pick to develop platforms as your business model. As you can see you’ve got plenty of options to choose from. Just research in more detail about each model and see which one you’d like to use in your future company.
How to Launch a Blockchain Startup: Funding for Your Business
You think you’ve got the greatest idea of how to launch a blockchain startup? We believe you. But before you get ahead of yourself, planning the success of your company, remember you’ll need money to start it. That’s why the next step you should consider is the funding of your blockchain startup. There are different methods you can try but two of the most common ones are ICOs and angel investing.
Through ICOs, or Initial Coin Offerings, you’ll be applying the equivalent of IPOs but in the crypto variant. You can offer tokens for sale to investors to support your blockchain and after its launch reward them and allow them to have a vote in the development of your company.
Another option for how to launch a blockchain startup with funding is through angel investing – investors who are willing to invest in new (and potentially risky) businesses that may turn out profitable. If you find an experienced angel investor who recognizes the advantages of your idea, you may rely on their support for the funding of your new blockchain business.
How to Launch a Blockchain Startup: Find the Best Team
You’ve got the ideas, you have figured out what you want to do, and even got financial support? Awesome, but that’s not enough how to launch a blockchain startup. A crucial part of the whole process is to find a reliable team to build the blockchain technology and maintain it in top condition. The great idea is a solid base for every business but if you don’t have a skilled tech team to keep your blockchain up, do you really think it can be successful?
Look at Solana – it’s got cheap and fast transactions, an innovative consensus mechanism, and a successful cryptocurrency. But it’s been down so many times since 2021 that people are beginning to lose their trust, despite the great fundamentals. If you want to avoid that, you have to make sure you’ve got a team you can count on that makes your platform reliable and keeps it that way.
How to Launch a Blockchain Startup: Get Your First Customers
If you’ve learned how to launch a blockchain startup, followed all the steps, and started your business, now comes the tricky part – getting clients involved with it. In the end, it’s the appreciation of users that makes companies successful, that’s why you should secure yourself a good client base. Get the word out on social media about what you’re doing, create a community, and interact with them. No matter the field you’ve picked, you should always be responsive to your customers and ensure they know their requests are heard. Many new companies don’t go too far because they neglect this step in how to launch a blockchain startup. If you want your blockchain business to succeed, make sure to secure your clients and treat them accordingly.
Blockchain Startup Ideas 2022
You now know the basics of how to launch a blockchain startup. In case you need some blockchain startup ideas, we’ll provide you. Let’s look at what you can do a startup for.
Blockchain Startup Ideas 2022: Cryptocurrency
One of the obvious choices, when you’re looking into how to launch a blockchain startup and what it can be about, is cryptocurrencies. You can do a variety of things here, including:
- Create your own cryptocurrency
- Create a cryptocurrency exchange
- Launch an NFT marketplace
- Gaming platform for crypto
- Crypto crowdfunding or a crypto charity
- Digital crypto wallet
Blockchain Startup Ideas 2022: Besides Crypto
Undeniably crypto and blockchain are connected and they’ve been developing at a similar pace. But you can pick to launch a blockchain startup in other fields as well. Such as:
- Blockchain analysis tools
- Cloud storage
- Blockchain and e-commerce
- Blockchain tools for stock market forecasting
We’ve only scratched the surface with our blockchain startup ideas 2022. You can definitely consider them but also do your own research and come up with something even better.
I Know How to Launch a Blockchain Startup – Should I?
You now know how to launch a blockchain startup and even got some blockchain startup ideas. But we can’t advise you what to do, nor are trying to. You read the data for yourself, the sector is quite competitive and fast-growing. Like any field, it’s uncertain where it’ll go next and how the outside factors will influence it. Since it started as the technology behind the first crypto, Bitcoin, blockchain is still most often connected to it by people, and thus many think that the volatility of the digital assets may affect negatively the technology as well. It’s worth mentioning though, that blockchain has managed to develop beyond crypto, and as seen here has many uses even in traditional sectors. That’s why it’s more likely to remain usable, even if cryptocurrencies can’t shake off the continuous bear market.
Creating any startup is a very risky adventure. You should know that you can lose your money and not be able to realize any profit. But if you’re willing to take the risk, you know how to launch a blockchain startup and it’s worth considering for a new business venture.
👉Want the latest news on Blockchain & Crypto🪙Subscribe to the @egorithms Telegram