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How Blockchain Can Revolutionize Business Development?

Business fundraising and development options are constantly changing in the crypto-space, just as the crypto-space itself is constantly changing. Even though many businesses can benefit from the implementation of blockchain technology, not all businesses have much use for a native token, and some businesses do not have enough knowledge to enter the space without assistance.

As a result, new funding methods have been developed, and we are seeing an increase in the number of blockchain-based companies entering into strategic partnerships. Examples include the collaboration of companies such as LEXIT and Polymath to increase the liquidity of abstract assets such as intellectual property, patents, and stocks.

The blocking startup is encouraging a small army of companies to collaborate and has developed an innovative blockchain-based funding method (Initial Loan Procurement) that addresses regulatory and tax issues to make it possible.

Blockchain technology is already transforming the way businesses conduct their operations.

The Internet has altered the course of history. We were doing just fine before it came along, but the way we shop, communicate, bank, and spend our money has all changed as a result of its arrival. Most of us would be struggling to get by right now if it weren’t for the Internet. As previously stated, we are doing fine at the moment, but that does not rule out the possibility that blockchain technology will have a similar impact — or even a greater impact.

Blockchain technology, in contrast to the Internet, does more than just allow us to communicate, trade, and store value. As a result, it provides immutable records of transactions that are safeguarded by the most advanced cryptography available. It enables us to exchange value quickly and without the need for intermediaries, as well as without the need for trust between parties. The systems currently in place to facilitate our online needs are simply unable to compete with blockchain technology, and the gap between the two technologies is only expected to widen as the technology develops further.

The publication of Bitcoin’s whitepaper in 2008 was a watershed moment in the cryptocurrency’s history. Originally intended to make democratic money a reality for everyone, the world’s first cryptocurrency had an unexpected side effect: the underlying technology opened Pandora’s box of innovation, resulting in the emergence of thousands of blockchain-based projects in the ensuing frenzy.

There are far too many projects to list, and they come from virtually every industry. However, one significant development has been the emergence of blockchain-based crowdfunding methods, which have become increasingly popular. After launching the world’s most successful initial coin offering (ICO) in 2014, the cryptocurrency space has exploded, with thousands of new tokens becoming available every day. It is undeniable that many entrepreneurs believe that the blockchain holds the key to the future of their companies.

What is it about the blockchain that has startups so excited?

Because cryptocurrency transactions are not restricted by borders or exchange rates in the same way that fiat currency transactions are, initial coin offerings (ICOs) have become a popular method of raising funds for new businesses. For new businesses, traditionally raising funds can also be a significant challenge. For example, a bank may refuse to make a loan to an entrepreneur because they do not understand the vision of the business. Anyone can contribute to a project they believe in thanks to blockchain-based financing. This provides startups with access to capital that they otherwise would not have had.

With such widespread interest in blockchain technology, there appears to be increasing confidence that the technology is here to stay. If this is the case, it makes sense for new businesses to adopt a blockchain-based business model. It provides them with an opportunity to leapfrog competitors who may be sluggish in adapting when they should be accelerating their pace. It also reduces the likelihood that a startup’s business model will need to be drastically altered in the future to accommodate new technological developments.

The technology has piqued the interest of some well-known figures.

It is not only startups that are showing an interest in this field. Facebook is reportedly looking into blockchain technology, and Uber’s co-founder, Garrett Camp, is currently working on a new cryptocurrency called ECO, which stands for Ethereum Classic.

Estonia has implemented a blockchain-based e-residency program, which provides citizens from all over the world with access to Estonian services such as banking and taxation. The number of projects is too numerous to list, but the evidence that blockchain technology will be huge is overwhelming.

The initial coin offering (ICO) is being left behind by new funding methods.

Airdrops: These are similar to initial coin offerings (ICOs), except that participation is completely free, allowing citizens to participate even if their governments prohibit the purchase of cryptographic tokens. They serve primarily as a marketing tool rather than a funding mechanism, as they attract new token holders who are invested in the success of the coin (and, by extension, the project) through their participation.

STOs (Securities Trading Offerings): These are essentially ICOs for securities. In contrast to initial coin offerings (ICOs), all security token offerings must adhere to stringent regulations. Projects such as Polymath are developing solutions to allow businesses to migrate their intellectual property and other assets onto tokens that have KYC/AML regulations “baked in.” This token model makes these assets extremely liquid, and it has the potential to cause significant disruption in the securities market.

Initial Loan Procurement (ILP) is a brand-new fundraising method developed by blockhive and its partner Agrello that is completely different from anything else available. Companies such as Blockhive and Agrello have benefited from their expertise in developing blockchain strategies, while Blockhive specializes in developing legally-binding self-aware agreements on the blockchain.

A simple form of fundraising, ILP makes use of blockchain technology to allow token holders to sign loan agreements on the blockchain and thereby become creditors. It is intended to use the funds raised to further develop the blockhive ecosystem (which is comprised of several partners who share profits), and creditors are compensated every year from the operating profits of the blockhive ecosystem. Using this model, token holders will be able to trade their loan rights with others who can update smart contracts and acquire the loan rights to receive payments. It has the potential to divert attention away from the initial coin offering (ICO) space in the coming years.

Is blockchain technology the wave of the future in business development?

Initial Coin Offerings (ICOs) was the first attempt by businesses to raise funds using the blockchain. They have flaws, and as a result, better models have been developed to replace them. This is only the beginning of innovation; just as the first ICO attracted more companies to the space, we can expect STOs and ILPs to do the same, while also evolving to better meet the needs of businesses.

Blockchain will not only change the way businesses are funded, but it will also change the way they operate. Every aspect of their operations, from the way they are structured to how they protect consumers to how transparently they operate, will be affected. In the future, immutable ledgers will encourage the best companies to be more transparent about how they operate, allowing potential customers and partners to establish trust in a way that would have previously been impossible.

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Evangeline Christina is a Cyber Security Enthusiast, Security Blogger, Technical Editor, Certified Ethical Hacker, Author at Cyberspecial.net. Previously, he worked as a security news reporter in a reputed news agency.