5 Steps To Building A Successful Blockchain Business

As blockchain technology has come to be better understood, we have started to see a lot of new businesses emerging in the field. And while these businesses tend to be concentrated primarily in a few specific areas, the fact that blockchain technology is fundamentally a form of data transfer means that it can be applied to virtually limitless purposes. In other words, if you happen to be curious about the idea of starting a blockchain-related business yourself, you have a lot of options! But there are still some fundamental steps you’ll want to keep in mind if you want this business to come into shape and succeed.

1. Learn Blockchain Features

Just as we noted above, one of the reasons that we’re seeing an explosion in blockchain-related businesses is that the technology has come to be better understood. However, if you’re going to start this sort of business, it’s crucial to go beyond basic understanding and study the key features of blockchain. These are extensive, and not uniformly defined. But for instance, understanding the value of decentralized systems, the concept of a distributed ledger, and the safety and security offered by a blockchain ecosystem will go a long way. A firm grasp on all of this will enable you to better conceive of how the blockchain can specifically benefit your company.

2. Come Up with an Original Idea

We also mentioned that blockchain tech can be applied to limitless purposes. In fact, we’ve even looked at some examples of creative businesses in this category in the past — such as in the form of a company managing blockchain-based hotel reservations. What this all means is that you can (and should) be creative in building a blockchain business. This is a rare area in which there are unlimited potential applications, but there is also still a lot of untapped space. A creative and original idea will give you a terrific shot at success.

3. Choose Your Blockchain Network

Those who are brand new to the idea of blockchain tech in new businesses may be under the misconception that these businesses all create their own blockchains. While this is certainly something that can be done however, the more common idea is to build a business that uses an existing network — which, naturally, means you have to choose the right blockchain for your purposes. Ethereum tends to be the main option, because it’s designed specifically for application and function development. But there are enough similar options available now that it’s worth taking some time to go over your decision.

4. Form an LLC

While so many new businesses are handled relatively unofficially — often by individuals sitting at their computers — a blockchain company should be designed more legitimately. When you’re running a business in which wealth and/or data is transferred on behalf of clients or customers (as will likely be the case here), it’s important to establish some degree of protection from the business practices themselves. In this regard, setting up a Limited Liability Company (LLC) is the most appropriate option.

The reason why, is in the name: These company structures limit the extent to which you have personal liability for business assets or outcomes. That doesn’t mean the company won’t be responsible for any mishaps or legal issues that may occur. But an LLC essentially sets your personal assets aside in these matters.

5. Communicate Your Business’s Purpose

Understanding of blockchain technology really is on the rise. More people are interacting with the technology out of necessity; many are simply choosing to learn more about it as it grows more prominent; and the matter of blockchain education in schools is being discussed more frequently as well.

Even with all of this progress being made though, it’s still possible (if not likely) that most of the potential partners or clients you interact with will be a little uncertain of blockchain’s utility or role in your business. For this reason, it’s also vital to focus on communication and marketing when you start a company in this space. Being able to clearly explain why the blockchain is useful in what you’re doing can go a long way toward generating business for your new company.