With bitcoin grabbing the attention of financers all around the world as the leading and the highest valued cryptocurrency, blockchain technology has also come into the forefront. The majority of industrial verticals in the global economic system have now started exploring the idea of implementing blockchain in their business models. More and more companies are now adopting this technology as it helps in making the business model decentralized, transparent, and much more efficient. Not only does this technology help in transforming and upgrading business models, but it also allows innovation to take place at a rapid pace.
The popularity that blockchain technology commands today can be traced back to the success of cryptocurrencies, especially bitcoin. With platforms like https://brexittraders.com/ coming into the forefront, blockchain technology has further strengthened its hold over the global economy. The crux of this technology being decentralization, the processes of data perception, storage of information, and problem-solving have been largely altered by it.
A large number of business owners are planning to improvise their business models to incorporate blockchain technology. A blockchain business model is decentralized, helps in creating a trustee network, and enables peer-to-peer transactions. It uses tokens to make profits which are given out to anyone who helps blockchain in reaching consensus. The value of this token depends on the economic condition of the market.
Wondering what these business strategies look like and how they work? In this article, we have listed some of the most popular and successful blockchain business strategies that have stood out in the test of time.
3 Best Blockchain Business Strategies
Here are the top three blockchain business strategies that are commonly used by business owners:
- Blockchain As A Service: This is the widely used, and arguably the most successful blockchain-based business strategy. This business strategy involves providing other existing businesses that are willing to implement the blockchain technology with an ecosystem that would help them manage their blockchain system. This business model relieves end-users, which are generally established businesses and startups from worrying about the functioning of the blockchain technology, and instead provides them with an ecosystem that can test, experiment, and conduct research with its help. BaaS, therefore, allows their clients to focus on their individual cycle of development while removing the need for hardware.
- Token Economy: This is a utility-based business strategy. In the utility token business model, the business functions through tokens. The institutions that are a part of this business model are capable of facilitating transactions using tokens like XRP and XLM, which are utility tokens. These tokens facilitate all network activities and power the entire network. Businesses withhold a portion of these tokens and release the remaining tokens for the functioning of the network. In this business, model profit is made when the values of the tokens increase.
- Software Products Based on Blockchain: This is another very popular business strategy based around blockchain technology. For businesses to adopt blockchain technology sooner and with ease, businesses generally need to purchase a certain blockchain solution that is then integrated into their system. These solutions are supplied by certain companies. This business model can be very profitable as it not only provides for reasonable up-front payment for the solution but also entails a post-implementation support charge. The reason behind the success of this business strategy is the lack of talent in the market. Companies these days are unwilling to go through a long and often difficult screening process to acquire talent in the market.
Apart from the business strategies mentioned above, many other strategies are also being used by business owners these days. Strategies like peer-to-peer powered businesses and blockchain professional services have also become extremely popular these days. Choosing the right business strategy depends on the nature of the business and its specific requirements. There is no absolute condition or idea which can determine how a business must function. Keeping the interests of the enterprise in mind, entrepreneurs must customise these models to suit their needs.