4 Reasons Why Entrepreneurs Should Build Blockchain Companies
The blockchain industry is growing at a rapid pace and may one day be the backbone of most global networks. According to Moore’s Law, technology is evolving at an exponential rate, which is making our devices more efficient and cost effective. The average smart phone now has more processing power than NASA’s computers in the 60’s.
New technology has a major impact on changing society’s paradigm and our daily habits. The advent of the internet and home computer has lead to individuals having more power than ever before. The internet has made our world a smaller and more connected place, while at the same time breaking down old power structures into more decentralized models.
We now have access to a vast resource of information, making education more autodidactic. Individuals can share information with the world and compete directly against corporate media conglomerates. We have granular control over our entertainment and don’t have to be passive observers. Investors can easily access global markets from the comfort of their own home and entrepreneurs can make millions of dollars on a shoestring budget.
The Evolution of the Internet
Bitcoin is a natural evolution of the internet by creating a global public financial ledger that can bypass centralized fiduciaries. It is money specifically designed for the internet by allowing people to send value quickly without friction and red tape. Bitcoin’s open-source code has given birth to an entire new industry around its underlying blockchain technology. Financial institutions everywhere are looking to upgrade their systems into peer-to-peer cryptographic networks, to increase settlement times, automate accounting and secure communications.
Blockchain technology may transform our world the same way the internet did. Similar to the internet of the 90’s, there’s plenty of opportunity for entrepreneurs to build fortunes as the next big wave of tech giants. As more jobs become automated, data is becoming the most valuable commodity of the information age. Old industrial giants like big oil and manufacturing corporations are giving way to the tech sector, as Google, Facebook and Amazon become the most profitable companies in the world.
If you’re an entrepreneur looking for the best opportunities available, then here are four reasons why you should consider building a blockchain business.
#1: Fast Growing Industry
Over the past couple of years we’ve seen growing interest for blockchain technology within legacy institutions. Commercial banks, remittance markets, credit card companies, stock exchanges, governments and tech companies are all looking for ways to upgrade their systems with blockchains. These industries will need to evolve with the pace of technology or risk getting left behind by new companies who can produce the same results quicker and at a fraction of the cost.
New businesses have less overhead and can move quicker than large corporations, which creates an opportunity for entrepreneurs to get a piece of the action and potentially disrupt age old monopolies. Many companies are still learning the ins and outs of blockchains and there is a tech race for market supremacy. In spite of growing competition, Bitcoin still maintains its status as the dominant and most secure blockchain in the world. This is likely due to its first mover advantage and network effect as the mother of all blockchains.
#2: Easy to Network
Most companies in the blockchain space are startups, which makes it easy to network and build alliances with other entrepreneurs and executives. Even the more established legacy companies are just getting started in this space and are more willing to take a look at any innovative products or services you may have to offer.
Blockchain developers are in high demand and tend to make more money than programmers in other industries. If you’re a good programmer who can code blockchains and smart contracts, then your services will be greatly sought after.
#3: Room for Innovation
Bitcoin is already eight years old but blockchain capabilities are still evolving and experimental. Cryptocurrency user adoption is on the rise but we haven’t reached the consumer adoption phase yet. The technology can still be a bit too complex for the average person and aside from sending money, there isn’t a lot of practical real world applications.
There’s plenty of room for entrepreneurs to be creative in identifying market needs and offering innovative solutions. There are many niche markets that could see advances due to blockchain technology. The early internet only had very basic functions for communication until developers and entrepreneurs helped shape it into the backbone of our modern society.
#4: Easy to Raise Capital
Over a billion dollars of venture capital has gone into blockchain startups and VC’s are sill looking to invest. What’s unique about this industry is that many crypto projects are launched solely off of crowdfunding. New startups no longer need to give up equity in order to raise millions of dollars in capital.
Ethereum is an example of a popular crypto project that managed to raise over $18 million and its token’s market capitalization reached over $1 billion during its peak. Another popular project named Golem recently raised over $8 million in under 30 minutes. There’s a lot of money being raised in this industry with plenty of opportunity for entrepreneurs.