With the blockchain wagon rapidly gaining momentum, a large number of companies are willing to dabble in the blockchain pool. However, the bone of contention has been its purpose- is it an instrument for monetary gains or the plan is driven by innovative hunger?
Some of the high-profile public blockchain initiatives like Kodak and Long Island Iced Tea have been somewhat disastrous. This has made observers question the applicability and authenticity of the technology on a large scale. While big corporations jumping in can count on more significant financial aids and human capital, blockchain projects often lack funds. However, there are a lot of lessons that entrepreneurs can learn from the experiences of the big brands.
- New pathways for businesses to add valuable services
Despite praise for blockchain as a magic bullet to solve various tech issues, the technology is neither useful nor applicable for all business models. Merely adding blockchain to an existing platform will not result in higher revenues or profits. Thus to ensure successful implementation, an undeniable use for the technology is needed- one that adds value. For example, ASKfm.
The company boasts of one of the world’s largest Q&A social platforms. It is all set to add an educational component. The aim is to create a massive open online course (MOOC) platform for delivering tutoring, private lessons and more.
- Improving accountability and tracking
For companies operating huge supply chains, the immutable ledger of blockchain is a crucial addition. It helps in the reduction of missed inputs or faulty information. Companies in the food services sector can use blockchain to improve their ability to track products and avoid food-borne diseases due to unsafe goods. For example, Walmart has already created a blockchain platform to track food products that travel from source to shelf.
By harnessing the blockchain power, companies can similarly track their products more accurately. Every block on the chain will have tamper-proof data. The key for stakeholders is to ensure the creation of strong supply chains and to manage a better quality of their products from the factory door to stores.
- Delivering more avenues for incentivising consumers
The tokenisation ability of blockchain is of great use; it can be utilised to buy services in-app or provide incentives and rewards to convince users for participation. Companies than thus create value-added ecosystems that reward users for contributing and reinvesting their tokens back into the company.
For example, Italian coffee maker Latesso includes token addresses on its products. Thus, users can redeem online rewards and even perform exchanges for fiat currency. The token allows users to monetise messaging groups and communication streams. It empowers and enables businesses to integrate with the ecosystem easily.
Thus, a more devoted following can be built by entrepreneurs and involvement can be incentivised without an established brand name.
These are a few critical tips that can benefit the young blood in the blockchain industry. Let us know if you have any other learnings from your experience.