An Entrepreneur’s Guide on the Blockchain Technology and Its Uses

The Blockchain Market will be worth 163 billion USD by the time we reach 2027. The time has come when the digital world has realized the power of decentralization and incorporated it into their everyday process. The technology, which has set off, can indeed be too much to understand and implement for a business.

But does it mean you, as an entrepreneur, should let go of the glorious opportunities that come with investing in Blockchain? Well, not until we are here.

We have curated a handbook for you – a Blockchain beginners guide – to answer the most frequent questions like what Blockchain technology is, its applications and uses, and the benefits it carries to bring mass revolution in the world.

The only prominent solution that one can think of to avoid any confusion on Blockchain is by looking at the many pieces of information presented on the world wide web and getting the hang of the technology. To answer one of the fundamental questions:

What is Blockchain?

Blockchain is a distributed database shared among several nodes of a system. It is called Blockchain since it collects information in blocks that are encrypted and linked to other sets of blocks, forming a digital chain.

The Blockchain concept has predated its widespread application via the creation of various cryptocurrencies, Smart Contracts, Defi (Decentralized Finance) applications, and NFTs (Non-Fungible Tokens).

Here’s the guide that will clarify the complicated Blockchain development world: A Beginners Guide to Blockchain.

The Impact of Blockchain Beyond Cryptocurrency

As we keep exploring this technology, we realize blockchain developer is not restricted to popular cryptocurrencies. There is much more to the technology than the digital currency that keeps reaching new numeric value every passing hour, larger than what it was an hour ago.

Although the mass popularity of Blockchain has been limited to its contribution in the field of Bitcoin or other cryptocurrencies, there are several use cases now emerging at a steady rate. This is a sign of the potential that the decentralization technology comes with and proves an unignorable impact of Blockchain on business across industries.

Today, Blockchain, along with its several features like – Smart Contracts, ICOs, etc., are coming in handy for several different purposes, which are usually attended by businesses in their everyday processes. These inherent Blockchain features have made it a part of several industries like – FinTech, Real Estate, Agriculture, Healthcare, Education, Manufacturing, Retail, and On-demand.

The different domains or use cases of Blockchain that go beyond Cryptocurrencies have been well explained in the write-up titled Blockchain Beyond Cryptocurrencies.

The Four Foundation Pillars of Blockchain Technology

Now that we know that Blockchain is a broader phenomenon beyond transaction and crypto, let’s check out what technologies act as a base for Blockchain to fuel technological development.

ICO

Initial Coin Offering is a fundraising model chosen by startups and enterprises that have a Blockchain element in their business model. Here is how it works;

Pre-Announcement- The first stage of ICO is when the preparation of the ICO is made. At this stage, the white paper – containing the details of the project – is drafted, and the marketing campaigns are started on websites that the ICO investors frequent.

Offering- It includes the contract’s terms and conditions that are drafted and passed over to the prospective investors.

The financial instrument – cryptocoin, which has a toe assigned with it, is offered to investors in return for their capital.

Marketing Campaign- This is the stage where the actual legwork happens. The campaign generally tends to stay up to around a month and targets an audience belonging to small investors and institutions. The demand is a lot higher than the otherwise popular fundraising mode – Venture Capitalism, giving birth to queries like VC vs. ICO: Know who is winning.

Smart Contracts

Next to ICOs, the technology that has found its prominence in the world of businesses powered by Blockchain is Smart Contracts.

When you make Smart Contracts on Blockchain, you can serve the same purpose as their physical world Contracts counterparts; there is no way for any involved parties to breach the contract.

In the case of Smart Contracts on Blockchain, both parties are made to put in an amount individually in a separate escrow amount that is in neither of their controls and is only released when the terms and conditions of the contract are fulfilled. The design of Smart Contracts promises many vital things such as accuracy, zero disputes, high transactional speed, data storage, embedded trust, etc.

Content source: https://appinventiv.com/guide/blockchain-guide-for-entrepreneurs/

I am James Smith, an active blogger with over eight years of experience in the industry, and over that time, have built specialist experience in Technology Content Writing.