How to Start a Blockchain Startup: 7 Steps to Your Blockchain Startup
How to Start a Blockchain Startup: 7 Steps to Your Blockchain Startup
As blockchain technology evolves and the public’s awareness of it grows, it becomes clear that its power and potential are not restricted to digital currency alone. The blockchain’s underlying mechanics could be game-changing for businesses in numerous industries. Despite the fact that this is a relatively new and unexplored field, many firms are already eyeing the benefits that immutable, distributed ledgers can offer.
The creation of a crypto project is easy, but scaling it can be challenging. The first step is to get a firm grasp on cryptography and how blockchain infrastructure relates to the real world.
Read on to find out how to start a blockchain project and what it takes to integrate this emerging technology into your business strategy.
Blockchain Application: Where to Begin
Let’s look at an example. Say you want to buy something, but it’s not in your local store. Online retailers have everything you want. You come across an Internet store that has the item you need, but the store is unknown and has no reviews. Would you pay before receiving the item? You also don’t know if the thing itself is any good. Trust issues arise from situations like this. Many fraudsters take advantage of trusting buyers.
What if you could acquire anything from anywhere?
Imagine finding the item you want, agreeing with a vendor to make the purchase, and going to the post office to pick it up. The smart contract between buyer and seller needs crypto money before any exchange of goods is made. It’s different when the money goes straight to the seller’s wallet—you can’t help but wonder if you’ll receive the product or if you’re about to get scammed. The smart contract steps in to help, controlling the money according to predefined rules.
You must be ready to make the exchange before signing such a contract. The seller, the buyer, and the smart contract all have digital wallets which exchange cryptocurrency and are used in this transaction. Buyers must protect their wallet’s contents beforehand. The online currency exchange platform allows cryptocurrency mining and purchasing.
If you are interested in this new method of buying and selling, you may be wondering how to start a blockchain project. What steps must one take to launch one’s own blockchain technology company?
7 Steps to Creating Your Own Blockchain Startup
Step 1. Meet the blockchain
Blockchain makes transactions secure even if the parties have never met and don’t trust one another.
Many feel that the first blockchain platform, Bitcoin (a new idea revealed in 2008), will end up changing society. They may be right. Blockchain is a peer-to-peer (P2P) distributed ledger that is cryptographically secure, append-only, immutable, and editable only by consensus. It is organized in blocks that reference and identify previous blocks using a hashing method, making an unbroken chain—hence the name blockchain. Faking documents, transactions, and other information are nearly impossible because no one person controls the database.
All transactions receive an electronic digital signature, and blockchain data cannot be modified since there isn’t enough computational power to change the entire chain.
Step 2. Know the blockchain features
Blockchains offer various functions to distinguish themselves from all other competitors. By knowing the advantages of this technology, you can stand out from the crowd.
A blockchain’s primary characteristic is its ability to reach a consensus through a decentralized network. The database is not centralized under any one entity’s control. Because of this, a blockchain can deliver a unified, trustworthy piece of information to its users. Financial transactions, for instance, impossible without the assistance of banks. Blockchain technology makes their services obsolete.
All transactions must be validated before they can be added to a blockchain. To ensure accuracy, we use a rigid set of principles for verification. Absolute security in all aspects!
In business, every deal is different. In the case of digital currency, duplicates are strictly prohibited at all times. Have you ever done a Google search and found numerous duplicate results? To avoid this, we can turn to a blockchain solution!
Users transfer value from one to another through the use of tokens.
Cryptography is crucial. Transactions in the financial sector, as well as other industries, require secrecy and discretion. One might make the case that openness is preferable to confidentiality in many cases. Only by relying on third parties can blockchain infrastructure ensure the privacy of its users’ data. As soon as your presumptions have been proven correct and you are aware of the issues that need to be resolved for your customers, you will be able to design a blockchain business model and a Go-To-Market (GTM) plan to bring in new clients.
Miners on a blockchain can earn cryptocurrency in exchange for verifying transactions and expending effort to defend the network.
Once data has been added to the blockchain, it cannot be altered in any way. It’s theoretically feasible to undo the alterations, but doing so would involve an excessive expenditure of processing resources. Thus, you must use caution when inserting data into it in the first place.
Platforms for smart contracts
Some platforms are built on blockchain technology. Bitcoin, Ethereum, and other similar systems can all be used to run platforms.
Your assets are yours and cannot be squandered or owned again. Also, one wallet can contain any value. Contract management can be shared. Smart contracts allow property sharing. A blockchain, for example, can create a rights-of-use mechanism for digital music files, which can currently be copied without control. Limit time availability, if needed. Require verification of ownership for a music file. Copyrights are still owned if the author doesn’t share.
Blockchain-based smart contracts use business logic and code to execute a function when specific circumstances are satisfied. These contracts enable flexibility, programmability, and control of blockchain users’ business actions.
Step 3. Choose the brightest platform
Blockchain systems let you design unique apps with several benefits. Why do we need these platforms? Blockchain-based P2P apps are decentralized. These software programs can run on their own blockchain, utilize a current blockchain, or employ simple blockchain protocols. Using current platforms, you only need to design an application that runs on top of the platform, not a blockchain.
Expert Blockchain Development
We build decentralized applications and smart contracts for a variety of uses.
Step 4. Pick the most promising field
At the beginning of this article, you learned how to launch your blockchain project. Now, let’s investigate the blockchain’s potential for use in so many fields, and its true advantages.
Before we fully comprehended its potential, blockchain technology was applied to digital currencies. Since then, numerous applications for blockchain technology have been proposed in fields as varied as banking, IoT, DRM, government, ecology, transport, and law.
Internet of Things
IoT, or the Internet of Things, has been gaining popularity as people recognize its potential to improve their daily lives and the operations of businesses. The IoT is a network of computationally intelligent physical devices that can connect to the Internet, monitor real-world events or situations, react to them, gather pertinent data, and communicate this data. This basic concept of an IoT device has evolved into numerous novel ideas, including wearables, smart homes, smart grids, smart connected vehicles, and smart cities. Security is improved, low-value devices may be more easily integrated, and long-term device management is simplified with the introduction of blockchain technology into the IoT.
Do not overlook transportation concerns. Tolls, parking, and electric charging can all be paid for and received while on the go with this innovative new technology. Integrating with smart grids is another potential application down the road. This can be useful for regulating the charging procedure of an electric vehicle in accordance with the amount of renewable energy available to the vehicle’s system at any given time.
Present blockchain research is focused on numerous potential uses that could aid government operations and advance the current e-government model. Some of these uses are well-established; examples include electronic voting, homeland security (border control), and electronic identification (citizen ID cards).
There is a growing body of evidence suggesting that the healthcare sector is another important sector that may stand to use blockchain technology. Major problems in healthcare, including privacy leaks, data breaches, excessive expenses, and fraud, can result from a lack of interoperability and overly complex processes, transparency, audibility, and control. This is of particular importance in developing nations.
Cost savings, increased trust, faster claims processing, high availability, no operational errors due to complexity in the operational procedures, and the elimination of the spread of counterfeit medications are just some of the many potential benefits of implementing blockchain technology in the healthcare industry.
Consider the case of drug tracking. A hash is created during drug manufacturing that includes all the pertinent data about the substance. The drug’s movement from one entity to another can be recorded in a public ledger or blockchain.
The financial sector is one area where blockchain technology has already been put to use. Since the potential cost savings offered by blockchain technology are so appealing, many large financial institutions are looking at how to implement it.
The private keys and blockchain assets of users, however, have already been safeguarded by developers. For instance, in a blockchain, all participants could stipulate that a simple majority vote is required to finalize a deal. Because of this, it will be far more difficult for hackers to switch ownership with the theft of a single key. Asset trading systems operating on the blockchain can be easily developed to support multi-signature transactions.
Blockchain technology has the potential to reduce the prevalence of false claims, accelerate the claims settlement process, and improve transparency in the insurance sector. Think of how much time and effort could be saved if all insurers used the same shared ledger for processing claims from different blockchain businesses. Likewise, when IoT and blockchain technologies converge, we may see a future in which connected devices negotiate and administer their own insurance policies via decentralized smart contracts.
Problems with content distribution, copyright management, and artist royalty payments are major concerns in the media industry. For instance, digital music may be copied freely and repeatedly, and attempts to implement copy protection have been broken. Royalty payments are affected by the fact that a musician or songwriter has no say in how widely their work is disseminated; their work can be reproduced as much as necessary. Payments are also not assured and are calculated using standard airtime metrics.
Connecting customers, artists, and other actors in the business will allow for transparency and control over the process, thereby resolving all the concerns with copy protection and royalty payments. The distributed ledger technology known as blockchain has the potential to create a system where only the purchasers of digital music may claim ownership of it cryptographically. Instead of relying on a central media agency or authority, this payment system is managed by a smart contract. The smart contract’s built-in logic will cause the payments to be disbursed mechanically.
Step 5. Review the stages of development
The question of how to start a blockchain startup is frequently asked. Feel free to get in touch if you’re interested, and we’ll provide a comprehensive tutorial complete with working examples of the code. Let’s talk quickly about the different steps involved.
#1. Installation and setup
Numerous tools exist to make blockchain and smart contract ideas more accessible and applicable to your project.
#2. Granting access
At this point, you can generate some keys to give specific users access to the service and the application.
#3. Creating a blockchain
You can create a new blockchain from scratch, or “instantiate” an existing one by entering its initial configuration data here.
You are now able to develop a contract that can first establish a value and then retrieve it again.
#5. Making an application
It’s time to put pen to paper and create some code that operates upon and interacts with a blockchain.
It might not be as easy to understand as it seems. However, unless you run into any snags, these procedures shouldn’t take too long, and once they’re complete, you’ll be ready to begin implementing a blockchain into your applications.
Step 6. Acknowledge the benefits of blockchain
Blockchain industry experts around the world tout the technology’s many advantages. As a result, we feel compelled to highlight the top 8 advantages that are on everyone’s mind.
This is one of blockchain’s fundamental ideas and advantages. A consensus technique is used to get an agreement on the legitimacy of transactions, eliminating the requirement for a trusted third party or intermediary.
Transparency and trust
Since all users can view the same blockchain, the system is transparent, and trust may be built between participants. This is especially important in cases where individual choice should be limited, such as the distribution of money or benefits.
Once the information has been added to the blockchain, it is nearly impossible to alter it. Although it is not inherently unchangeable, the fact that making changes is so difficult, if not impossible, is considered a virtue of the system when it comes to keeping a ledger of transactions.
Data is copied and kept up to date among thousands of nodes in a P2P network, making the system extremely accessible. It is highly available because the network continues to function even if some nodes leave or become unavailable.
Every transaction that takes place on a blockchain is protected by cryptography to ensure its integrity.
Simplification of current paradigms
In several fields, including finance and healthcare, the present paradigm is a mess. Different organizations keep their own databases, making it difficult to share information with one another. However, since a blockchain can act as a single shared ledger among everyone involved, it has the potential to minimize the need for managed systems for any blockchain business model.
Since a single version of agreed-upon data is currently available on a shared ledger amongst financial organizations, blockchain can play an important role in the financial industry, notably in post-trade settlement services, by facilitating the quicker settlement of trades.
Because the blockchain business model does not necessitate the use of a trusted third party or central clearing house, significant fees paid to such intermediaries can be avoided.
Step 7. Find skilled blockchain developers
With your newfound knowledge of blockchain, the next logical step is to build a functional application. Unfortunately, there is currently an issue with this step. Talented blockchain coders are much like diamonds in that they are rare and expensive to acquire. You need not fret; there is a remedy for any difficulty.
EvaCodes has a team of talented developers that, as a result of their significant experience working in a variety of industries, are able to easily meet the special needs of your business and cater to its unique specifications.
Our Blockchain Case Studies
The blockchain’s meteoric rise is expected to continue. Expert opinions on cryptocurrencies are moot because the underlying technology is gaining traction. It’s not out of the question that soon enough, everyone will be using this ground-breaking platform, as it’s rapidly gaining popularity and will soon be the default option for most people.
We sincerely hope that this post was helpful in explaining how to start your own blockchain company. The next step is to put this knowledge to use by developing cutting-edge blockchain apps.
COO & Co-founder
Written by Vitaliy Basiuk
COO & Co-founder at EvaCodes | Blockchain Enthusiast | Providing software development solutions in the blockchain industry