Blockchain technology has tremendous potential for company founders who value innovative business ideas. At the same time, it is a challenge for classic business models because it works as a central database technology without traditional middlemen.
The definition of blockchain
Briefly and concisely, the blockchain can be explained as a database technology, which builds on arbitrarily distributed databases. All databases share a common goal of ensuring secure transactions through set rules. Each participant has a personal copy of the database. All participants with blockchain databases can see changes immediately.
Changes to once created datasets are not possible, but arise exclusively through the addition of new blocks or entries. Unique verification mechanisms determine the order of added blocks. Efficient encryption is the key factor for trust, only key-equipped subscribers can add new blocks through transactions.
Miners designated as such ensure that the user databases distributed in the network are always up-to-date and thus guarantee system integrity. The blockchain enables business models that don’t need middlemen. It’s conceivable, for example, based on this technology, to buy a home without a notary or trade securities without an exchange or bank.
Many companies from all industries are currently as fascinated as confused by the possibilities of blockchain. They intuitively feel the potential, but they know very little about how it works and its importance to their market segment. There is an increasing need for advice and this opens up new opportunities for start-ups. Of course, a blockchain consulting start-up requires certain skills, experience and principles.
For example, one of the requirements is the ability to analyze complex facts and summarize the results in a comprehensible way. A certain enthusiasm for technology is a prerequisite, knowledge in relevant programming languages are optimal.
Experience with digitization in general is advantageous. Knowledge in the blockchain subject area and already gained experiences are the basis for a successful customer consultation. In addition, it’s assumed that a blockchain consultant can understand the needs of various industries and requirements of potential customers.
A blockchain consultant must be convinced that they provide a helpful service. The attitude gives rise to interest in finding the technically and economically perfect solution for the customer. Often consultants demand mobility accompanied by desire to travel, potential customers are found online and are located in all parts of the world.
The blockchain consultant helps other companies to understand the technology and develops custom application scenarios with their customers. They accompany the development and implementation of decided projects.
Blockchain consulting requires a certain amount of enthusiasm for future-oriented technologies and, on this basis, offers multifaceted possibilities.
Initial Coin Offering ICO
Basically, the blockchain technology since the Bitcoin is connected with the idea that money creation is no longer left to the central banks alone.
In addition, many proponents dream of replacing the current credit-based system with interest rates on every debt. The decentralized generation of money is linked to a democratization of finance.
For start-ups, the idea of cryptocurrency financing has become more and more prevalent in recent months. Decisive are reports, according to which founders have realized millions of euros within a very short time by means of ICOs. But how does the generation of liquidity work?
To collect money, ICO start-ups issue so-called tokens. The value of issued tokens lays in the future products of these start-ups. For example, when a new company develops an Internet browser and requires more money to realize it, it emits self-generated tokens. Buyers can use these in the finished product for purchase.
Animated by this process, especially founders from the blockchain scene are exploring new ways to finance their start-ups. They avoid the involvement of venture capitalists, such as banks, in this type of fundraising, and address many people with tokens mostly over the Internet.
Fintech companies for transaction payments using blockchain
Financial services combined with the latest technology, this is what Fintech stands for. Especially in banking, the combination is perceived as a serious threat. Classic banks have for too long ignored the importance of digital transformation and lost significant market share to digital financial service providers.
The Blockchain is the ideal technology for financial transactions that will radically change payment traffic. It works like a decentralized, public account. Digital transactions made on it don’t require any authorization from a central office. They are fast, inexpensive and safe. The speed comes through direct payments from A to B, with the exclusion of third parties. Security is ensured through the best possible encryption technology and low transaction costs are made possible by lean structures.
Start-ups are extremely successful in the sector of payments made through blockchain. Innovation is a cornerstone of the business model. The traditional banks have recognized their opportunities and are looking to cooperate with Fintech companies to make up lost ground. The only danger in this area is that the implementation of new ideas is greatly simplified by available technology. This lowers the hurdles for newcomers and can lead to an oversupply.
If you decide to establish a start-up company in Switzerland in the Fintech or ICO business sectors, our experts in this field are ready to provide you with assistance.