Blockchain for Business

This includes small scale businesses which sell to the higher scale businesses in return for reasonable amount for the applications based on the technology. Apart from getting a reasonable payment upfront, exposure of blockchain technology to the organizations is beneficial to them. They will also need to provide support post-implementation. Media Chain blockchain being sold to Spotify. To resolve royalty issues prevalent in the music industry. As companies don’t want to bear the load of tedious procedure—acquiring talent is another reason for acquiring this business model.

This model offers services to the entrepreneur, corporate or startup businesses to make their hands on practice on this new technology. Some companies like Deloitte and IBM are already making projects on blockchain technology that can be contacted for completion of project by other businesses. There is no need to put money in the h/w or s/w—connecting directly to the services offered by these companies.

P2P model ensures direct interaction between end-users. It allows the end users to use the technology (blockchain) for building software that makes the whole internet as non-authorized. Casting of this can be done by BaaS, tokens, and charging from network. Tools which based on this model are File coin, Sia, Etheria and IPFS. Like Wikipedia, is open to everyone—anyone can make changes in the contents or can revise the contents. Its serve as a medium for true P2P exchange.

1 IPFSThis system works as a replacement of http—it is developed in such a manner that it can hold the transaction in outer space even i.e. the pending issues of http are solved by this web applications.

2 File CoinThis is a monetary based system developed for storage of information and having its own crypto currency. In exchange of user’s not used storage space they provide them some value.

3 SiaThis tool uses the new technology for transaction aim towards replacing of Dropbox, Google Drive.

4 EtheriaThis protocol focused on the blockchain gaming properties by building blocks in the upgrading ecosystem. Some games like Beyond the Void and Spells of Genesis are built on blockchain gaming platform.

What makes blockchain business model different from the traditional one is that it assures P2P interactions, removing all the middle man. By creating a trustless system, vanishing mediator for verification of records and fasten the faith. In Pvt Ltd companies, in this platform board of director and owners are absent. However they are present in the blockchain model theoretically and their interactions methods are changed dramatically.

As for blockchain entrepreneurs and developers to make profit is a straight path—in the hope that their project will work out and value of their assets will increase by keeping some parts of the token as equity share combined with liquidity of their tokens as return of their reward. It’s not simple to understand though how they cover the costs. At the initial stage, the investors get the crypto assets at low prices. Many of the crypto assets developers and entrepreneurs hold an Initial coin offering to crowd fund their project. In this way, developer gets sufficient amount to cover the costs.

Revenue can be earned by any one of the following:-

1 By charging network fee for using network or gas fee.

2 Value of dapp increases with the increase in the number of users implies token may up in price. A utility token can be traded within the network. For example, in video games digital currency which help in accessing the game is taken to be as utility token which helps in buying game materials, and can be traded.

3 By selling technology to a higher business like previously mentioned media chain blockchain acquired by Spotify.

Where Traditional business model is related to planning and planting a flower, designing an ecosystem is far like growing a whole forest: more complicated, with extra players to interact & unexpected coming results. Certain challenges also exist resembling that of a consumption–outcome problem or like chicken–egg problem.

However, business ecosystems, analogous to construction of forest, can’t be entirely planned and designed—they also come up. For ecosystem designing the following steps should be kept in mind which are interconnected:

1 Knowing about the problem to be solved.

2 What are the components of the ecosystem?

3 Know about the starting governance model of ecosystem?

4 How to grab the cost of ecosystem?

5 Can you determine the consumption–outcome problem at the time of beginning?

6 Assuring the reliability of ecosystem?

Step 1: Knowing about the problem to be solved?

Initially, problem should be defined clearly which the ecosystem is going to solve so that it can convince the high business investors and right actors for participation. If someone has ever thought 20 years ago that businesses like YouTube and Instagram could be built on taking selfies, then posting photos of your meals, and animals clips.

Is ecosystem the best choice?Ecosystem–blockchain business includes everything that a physical ecosystem (servers, clients, h/w, s/w) contains. The following are key points in what scenario ecosystem might be preferred:➢ Need for decentralization, transparency and immutability of records.➢ When Gateways are more expensive and time consuming like Expedia or Airnb.➢ Need for more security among users and developers.➢ When the speed of the new data is increasing anonymously as well as previous record is also mandatory to be stored.

What type of ecosystem you required?

Since all business ecosystem functionalities are not same, some business ecosystems work on the project completion—as small level players in the market and then handing over the project to the higher players. Some work on the transaction ecosystem by linking the providers and the requestors. Some work on the solution ecosystem which combines all the elements of the solution of the problem. As a startup business in this technology, one needs to know about the type of ecosystem, as they all differ in their construction, purpose, monetary mechanism and most importantly, success factors.

Step 2: What are the components of ecosystem?

Different participants get roles on the basis of the value prototype. A solution ecosystem can be understood by the examples of chorus having many mentors, suppliers and middleman.

In transaction ecosystems, the band director guide’s (who teaches chorus) role is played by the owner of the business ecosystem whose role is to tie a bond between manufacturers, suppliers and customers. The director guide constructs the ecosystem, inspires to join the system, describes about regulations, standards and rules. The success of the ecosystem depends on the responsibility completed by the assigned role. Also equating investment needed for the longevity of ecosystem is sustained. The failure of the ecosystem or we can say dissociation of the system is because of the Band director guide not being able to fulfill the duty assigned to him.