There is a lot of hype and buzz around cryptocurrency which may affect your view of how to use blockchain technology. With the talk of people raising money through the sale of digital tokens, there is a complete misconception about the actual value of building a business. As an entrepreneur, the best thing is to focus on the underlying technology to create new value for your business. The following points will help you maximize your business with blockchain technology.
Focus on Customer Management
If you want to get the benefit of using blockchain technology, you have to create a value proposition with client lifecycle in mind. This is the secret behind the success of SAP, a corporation making $22 billion in revenue every year. Benjamin Moore Co and Deutsche Telekom are some of the big names currently working with SAP to tap into the potential of blockchain technology.
Do not launch your Business as a Token
The association of blockchain technology with cryptocurrencies has made it somewhat difficult for many to distinguish between the peer-to-peer network with a time-stamping server and the cryptocurrency itself. While one is simply a database, the other is a form of digital money. A successful business should be centred on solving a problem as opposed to monopoly money. According to Jaroslav Kacina, founder and CEO of SophiaTX, a token is just a feature of a blockchain business and not a business by itself. Therefore, you should focus on a particular product, if you want to succeed in business. Unfortunately, many entrepreneurs, probably motivated by the desire for quick money, are launching their businesses as tokens.
Prefer a Series A to ICO
You should not view an initial coin offering (ICO) as an alternative to a series A round of funding. Although many VCs are seeing ICOs as the new way of startup funding, the reality is different. The company could be doing nothing more than raising monopoly money, particularly where the business model is not in line with blockchain technology. Creating a token on a blockchain with no business function in mind can never raise real money. It’s true that bitcoin has done very well. But this can only be attributed to its excellent technology. In any case, bitcoin is a protocol and not a business as such.
Be ready to learn first
Before venturing into a blockchain powered business, you should dedicate some time to understanding more about blockchain technology. Does your business fall within blockchain use cases? It is only after you have gained a general understanding of the subject that you will be able to decide whether an ICO will serve the interests of your business.
Entrepreneurs who have understood blockchain have been able to solve a real problem. Examples include supply chain management where blockchain technology can be used to guarantee the accuracy of transactions. Similarly, the SophiaTX blockchain product has the potential to control counterfeiting in the pharmaceutical industry.