The word “blockchain” has created a whirlwind and has deranged multiple traditional business operations. It doesn’t switch places with traditional businesses, but it provides new options for safe and secure transactions. Their benefits have been accepted by web users and hence these crypto business ideas are becoming more popular and desirable.
This new but promising technology has already started making a revolutionary change by penetrating varied industries. No industry is devoid of problems and as stated below, the majority of the issues are resolved with blockchain development.
Before we commence on the benefits of implementing blockchain business ideas, let’s find out more about blockchain.
What is Blockchain Technology
Blockchain is a shared yet unchangeable digital ledger of transactions that eases the process of recording transactions. It is managed by multiple computers in a secured way, making it difficult to alter, delete or penetrate the system. These digital transactions are distributed across the whole network of computer systems stationed on the blockchain.
Business owners love the security offered by blockchain technology and hence many companies have started investing in cryptocurrency and blockchain.
People who are aware of the pros of blockchain are thinking of incorporating a business using blockchain to mint money.
One day we made a list of weirdest business ideas to be successful. In this blog, we will discuss a few blockchain business ideas which show how a distributed ledger can give a rocket start to your start-up business. Let’s check them out.
Top Blockchain Business Ideas:
Idea #1: Securing Valuables with Digital Identities:
Digital identity opens our list of top blockchain business ideas! Digital identity is proof that shows yourself (who you are) when you are accessing online products or services. These identities are distinct codes that are attached to goods or services which ensure that they are possessed by you.
Pros of using Blockchain for Digital Identity:
- One of the most fascinating blockchain business ideas is to generate and assign digital identities to services and products of varied industries.
- Individuals can justify the ownership of the product based on these unique codes.
- The codes are unalterable and ensure better security than the traditional security systems.
Cons of using Blockchain for Digital Identity:
- Since transparency is a positive feature of blockchain, confidentiality cannot be maintained.
Idea #2: Easy Access to Medical Records:
Two pivotal factors of medical records (healthcare industry) of patients which need to be addressed are security and confidentiality. This is an integral part of the doctor-patient relationship. These physical reports can be lost or tampered with if they are not transformed into digital documents.
Pros of using Blockchain for Easy Access to Medical Records:
- This technology promises secured storage of patient data (medical records) in the hospitals and sharing with authorized personnel only.
- It also helps in the secure exchange of patient data within hospitals, labs, or pharmacies.
- Blockchain help in securing the EHRs (Electronic Health Record), thus ensuring their accuracy.
Cons of using Blockchain for Easy Access to Medical Records:
- Patient data secured in the blockchain is immutable and hence unauthorized change in patient information can’t be recorded. (well, frankly, any changes in existing records are impossible)
- Storing large data like CT Scans and MRI reports on the blockchain is a tough task.
Idea #3: Non-Fungible Tokens:
It’s the second most famous blockchain business ideas after cryptocurrency. The enhancement of online gaming amongst kids as well as teenagers is the new trend of today. Blockchain in the gaming industry functions with non-fungible tokens (NFTs). These NFTs are unique and they represent player ownership as well as immutability. You can sell and buy NFTs.
Pros of using Blockchain for Non-Fungible Tokens:
- Accessibility is the main benefit of investing in NFTs.
- Blockchain helps secure NFT ownership.
- There are no ownership rules for investment in NFT. Anyone interested can invest in the same.
Cons of using Blockchain Technology for Non-Fungible Tokens:
- NFTs are not termed as an asset class, since a small hype or false information can inflate the token value.
- The generation of NFT requires a huge amount of electricity. One NFT transaction needs electricity used for 1.5 months for a basic home.
- The purchase of Ether (blockchain currency) is essential for purchasing NFT. Hence individuals having a limited budget may find this investment a costly affair.
Example: Gods Unchained
Idea #4: Selling Decentralized Cloud Storage:
Though cloud storage is better than traditional storage systems, there are still chances of intruder penetrations or system crashes since the same is stationed on a centralized server. Blockchain business ideas of selling decentralized cloud storage has ample benefits.
Pros of using Blockchain for Selling Decentralized Cloud Storage:
- Low costs and load balancing are the best benefits of decentralized cloud storage.
- Blockchain in decentralized storage ensures better security since the files are broken and laid out across varied nodes. Even if one node is compromised, the rest stay unaffected.
- These clouds are more reliable and help retrieve data instantly.
- Blockchain also ensures enhanced privacy and security of data.
Cons of using Blockchain for Selling Decentralized Cloud Storage:
- For primary storage is data, this option is less feasible as compared to centralized storage.
- The trust factor is less as blockchain uses peer-to-peer technology, wherein lost data stay unaccountable.
- The execution of blockchain-based decentralized storage is a tough task.
Idea #5: Smart Contracts for Insurance:
The insurance industry is vast and is facing many issues due to huge volumes. Blockchain technology can handle this industry’s uncertainties and help gain people’s trust.
Research indicates that the US life insurance company lost $50 billion in the first quarter of 2020. Another way blockchain can help people is by making it possible to get affordable car insurance rates: smart contracts make it easier for insurers and policyholders to work together without sacrificing efficiency.
Smart contracts are blockchain-based events run on the Ethereum platform which is a collection of codes and data. They run automatically when the pre-defined rules are followed.
Smart Contract Market Research report indicates that the global market is estimated to reach approximately $300 million by the end of 2023.
Pros of using Blockchain for Smart Contracts for Insurance:
- Blockchain-based technology can help revive insuree trust by eliminating administrative barriers.
- A fantastic blockchain business idea for the insurance sector is the automated execution of processes, which can help predetermine the insurance amounts thus preventing exploitation on both ends.
Cons of using Blockchain for Smart Contracts for Insurance:
- It’s a tough task to create a smart contracts-based fool-proof solution for insurance.
- Technological complexity requires an in-depth understanding of the staff to operate and understand.
Idea #6: Suggesting Crypto Investments:
Since money is also becoming digital, trading cryptocurrency is a profitable business idea. Using distributed ledger technology for crypto investments helps in keeping a track of transactions and proves to be an ideal blockchain business idea.
Pros of using Blockchain for Suggesting Crypto Investments:
- The transaction costs in this case are less compared to other financial services.
- Security and transparency of transactions are possible in the case of blockchain technology.
- Blockchain permits ease of transactions since a layman can use an app or an exchange wallet and purchase varied cryptocurrencies.
Cons of using Blockchain for Suggesting Crypto Investments:
- Illegal transactions and risk of data loss are possible.
- Cancellation or refund is not possible in this case.
- High consumption of energy and vulnerability to hackers are a few more cons.
Example: BitCoin (BTC)
Idea #7: Video Streaming:
Decentralization of video infrastructure is a tough task due to the phenomenal rise in video traffic.
Blockchain-based video streaming permits the video creators a secured and shared video storage via encryption.
Pros of using Blockchain for Video Streaming:
- Blockchain-based video streaming ensures the integrity of ownership and transparency in a decentralized way.
- Blockchain permits a direct relationship between the audience and the creator, thus avoiding inventions from third parties.
Cons of using Blockchain for Video Streaming:
- High costs and piracy issues are some of the cons.
Example: Leeway Hertz
Idea #8: Authenticating Credentials of Hired Employees:
Since blockchain data is immutable, it helps the HR departments in verifying the credentials (education, diplomas, work experience, etc.) of the newly-hired employees.
Pros of using Blockchain for Authenticating Credentials:
- Fake credentials can easily be identified with this technology and hence only worthy and genuine employees with true credentials can be hired.
Cons of using Blockchain for Authenticating Credentials:
- High costs may deter many companies from using this technology.
Idea #9: Creating a Digital Wallet for Self-Driving Vehicles:
Self-driving vehicles are on the rise and one of the main aspects which need to be addressed is the parking amount to be paid when the vehicle automatically parks itself.
Pros of using Blockchain for Creating a Digital Wallet for Self-Driving Vehicles:
- Blockchain permits wallet ownership managed by machines. Blockchain business ideas of deducting the exact amount of cryptocurrency from the wallet when the vehicle leaves the parking space are commendable.
Cons of using Blockchain for Creating a Digital Wallet for Self-Driving Vehicles:
- Some challenges for this business idea are lack of experience, scalability and training areas.
Idea #10: Verifying Authenticity of Luxury Goods:
To permit customers to verify the originality of the branded products, Aura Blockchain Consortium came into existence. Since this technology compares the product ID with the client ID to authenticate the originality of the product, customers can instantly differentiate the first copy (duplicate) from the original.
Pros of using Blockchain for Verifying Authenticity of Luxury Goods:
- Blockchain technology ensures brand authenticity and enhances customer trust
- Reduction in costs is also a major advantage.
Cons of using Blockchain for Verifying Authenticity of Luxury Goods:
- It’s a costly technology and not all brands can afford it.
Example: Louis Vuitton
Idea #11: Managing the Supply Chain:
Supply chain management is the entire process that defines the flow of products and services. There are some blockchain business ideas that can be implemented for all processes within supply chain management. It includes the acquisition of raw materials from the concerned, processing them, and finally delivering them to their destination have varied benefits as stated below.
Pros of using Blockchain for Supply Chain Management:
- Reduction in errors, product delays, and prevention of fraudulent activities is possible with blockchain technology.
- Trust is maintained since supply chain visibility amongst the networks via their secured distributed ledger is possible.
- This technology also offers streamlined new supplier onboarding, which records vendor details, making them unchangeable and thus trustworthy for the other partners.
Cons of using Blockchain for Supply Chain Management:
- Sensitive information about the supply chain needs a permission blockchain (not visible to the public), which is less secure.
- The transaction process in the blockchain is slow since the same is authenticated on varied computers and servers. The cost increases in case of a huge volume of transactions in the supply chain.
Idea #12: Hosting Cryptocurrency Exchange Network:
These exchanges permit individuals to buy and sell digital coins for an exchange fee which is charged on a transaction basis. The transaction may include a deposit or withdrawal of crypto coins. It may also include a transfer of coins.
Pros of using Blockchain for Hosting Cryptocurrency Exchange Network:
- Users needn’t transfer their assets to third parties in such decentralized exchanges.
- Market manipulation can be prevented in this exchange network.
- The anonymity of transactions can be maintained.
Cons of using Blockchain for Hosting Cryptocurrency Exchange Network:
- The complexity of decentralized exchanges is a major drawback. Users of these exchanges need to memorize the passwords and keys to their crypto wallets. In case they fail to do so, their assets become non-recoverable and are lost.
Idea #13: Launch Digital Wallet:
A digital wallet permits users to store, transfer as well as trade their cryptocurrencies. Blockchain business ideas of creating a digital wallet app wherein people can access their cryptocurrencies and assets can help ease transactions.
Pros of using Blockchain for Launching Digital Wallet:
- Easy to utilize and enabling quick transactions are a few pros.
- This is a secured wallet that permits transactions with multiple cryptocurrencies.
Cons of using Blockchain for Launching Digital Wallet:
- Acceptance and compatibility are major challenges.
Idea #14: Managing Hotel Vacancies:
Hotels are always flooded with tourists and business people who have varied options ranging in prices and other facilities. Blockchain business ideas for the hotel industry can help resolve varied issues arising due to over-booking of rooms or wrong bookings, thus eliminating varied disparities.
Pros of using Blockchain for Managing Hotel Vacancies:
- Blockchain-based technology ensures that customer booking is accurate and verified in real-time.
- This in turn eliminates the chances of errors in the booking process and other cancellations, thus ensuring satisfaction at both ends.
Cons of using Blockchain for Managing Hotel Vacancies:
- Implementing this technology is a complex task, and data immutability makes it more difficult to cancel a booking.
- This shakes the accuracy of the hotel vacancies and needs human interference.
Idea #15: Ease of Cryptocurrency Payment for Vendors:
Since blockchain is enhancing its spread, more and more brands are accepting cryptocurrencies for payments against the purchase of products and services.
Pros of using Blockchain for Easing Cryptocurrency Payment for Vendors:
- Transactions can be easily carried out.
- Authenticity is ensured since it rules out the presence of middlemen.
Cons of using Blockchain for Easing Cryptocurrency Payment for Vendors:
- The immutability of transactions is a disadvantage since reversing them is not possible.
- The possibility of cancellation of transactions is also ruled out.
Idea #16: Customer Loyalty Blockchain:
In this competitive market, customer loyalty is pivotal. Customers need to develop an emotional quotient with your brand since they have multiple options to fulfill their needs. Companies are always on the lookout to approach loyal customers by conducting varied campaigns and offering rewards.
Pros of using Blockchain for Customer Loyalty:
- Blockchain can be a revolutionary move for retail as well as e-commerce industries as it permits these industries to create their loyalty programs.
- Blockchain technologies use AI (Artificial Intelligence) for precise accounting management, creating happy faces, and detecting high-end and loyal customers. They also ensure that customer wallets are filled with reward cards and other loyalty tokens.
- It also provides instant redemption for varied loyalty point currencies on a single platform.
Cons of using Blockchain for Customer Loyalty:
- Complexity in customer loyalty programs is visible when businesses try to add more partners as well as suppliers to their list.
- These reward programs are expensive and hence not all businesses can afford to implement them.
Example: Singapore Airlines
Idea #17: Immediate Tracking of Shipments:
Gone are the days when shipment tracing was a tough task. With blockchain technology, the shipment’s location can be instantly known and verified. Blockchain business ideas work wonders for tracking shipments, thus reducing time and costs.
Pros of using Blockchain for Immediate Tracking of Shipments:
- Quick processing time, improvised communication, and instant location tracking help customers/suppliers to track their shipments.
- Reduced costs and strong encryption security are ensured by this technology.
Cons of using Blockchain for Immediate Tracking of Shipments:
- Migrating to a new system is a complex and time-consuming task. The concerned staff needs to undergo training before plunging into this technology.
Idea #18: Blockchain for Cybersecurity:
Cyberattacks are carried out on all types of businesses, irrespective of their size. Minimum effort that every project should make is to buy an SSL certificate. Those certificates became a standard for web solutions since they provide strong encryption to secure information and safeguard the same against intruders. One of the advanced security tools is blockchain technology.
Blockchain ensures strong security by decentralizing the data with varied computers and nodes.
Pros of using Blockchain for Cybersecurity:
- Blockchain technology is spread over a distributed network, i.e., it’s more diverse and it makes intruder-penetration an impossible task.
- Blockchain security also ensures confidentiality and data integrity.
Cons of using Blockchain for Cybersecurity:
- Scalability and adaptability challenges are some major issues that need to be addressed.
Idea #19: Connecting Gig Workers to Respective Jobs:
Companies like FedEx and P&G outsource between 20-50 percent of their jobs.
Gig workers usually search for job opportunities within their neighborhood. They don’t explore opportunities outside their locality since they mainly travel on foot.
Blockchain helps these gig workers (contractors and other temporary workers) to locate new work opportunities.
Pros of using Blockchain for Connecting Gig Workers to their Jobs:
- This technology helps them easily trace their desired jobs.
- It also ensures job stability and eliminates the chances of exploitation.
Cons of using Blockchain for Connecting Gig Workers to their Jobs:
- The cost of implementing this technology is huge and hence many companies are hesitant to use it.
Idea #20: Covering Rideshare Gaps:
This is last but not the least among blockchain business ideas. Rideshare is a network that arranges ride-sharing trips. Rideshare companies face several challenges like deception in payments, geographical limitation (work only in some countries/cities), or a complex process of person identification. Blockchain is supposed to solve these questions.
Pros of using Blockchain for Covering Ridesharing Gaps:
- Blockchain-based technology helps connect the riders with drivers instantly, thus eliminating the requirement of an independent rideshare network.
- Payments can be directly accepted with cryptocurrencies.
- Vacancies can also be accurately shared.
Cons of using Blockchain for Covering Ridesharing Gaps:
- The network of rideshare companies is limited and hence not available in all cities.
Example: Arcade City
Idea #21. Blockchain-Based Charity
Blockchain technology can be used to build charity platforms that facilitate secure and transparent donations. Blockchain-based charity platforms provide a way for donors to contribute to causes they care about while also ensuring that their donations are being used for their intended purpose.
Here are a few ways in which blockchain can be used for charity:
- Traceability: Blockchain technology allows donors to trace their donations from start to finish. This means that they can see exactly where their money is going and how it is being used, which provides a higher level of trust and accountability.
- Global Reach: Blockchain-based charity platforms can provide access to donors from all over the world. Since blockchain transactions are borderless and can be conducted in any currency, it’s easier to attract donors from different countries.
How Can We Help?
We at Sumatosoft offer flexible and client-oriented engagement models as per your specifications, requirements, timeframes, and budgets. Using Scrum and Kanban methodologies we ensure an improved workflow with organized task management and inventories.
Sumatosoft also ensures a perfect software development life-cycle covering all the aspects ranging from requirement analysis, feasibility checks, UX/UI designing and coding the software, testing the same for errors, to deploying the software as well as maintaining the same post the release.
Our blockchain services are extended to developing tailor-made smart contracts, building high-end DApps, customized blockchain solutions based on the industry, creating crypto wallet DApps for storing varied cryptocurrencies, decentralized data storage for robust security, reducing the cost of business transactions, streamlining and securing financial operations, asset management, etc.
Our distinctive benefits comprise expertise in technical aspects, ensuring quality control, gaining client satisfaction by offering complete transparency, and last but not the least, using Agile methods to resolve client issues.
Not only do we abide by client deadlines, but we also ensure regular communications with our clients via calls, emails, and personal chats to see their happy and satisfied faces.
In the article, we provided 21 blockchain business ideas for more than 10 industries and domains. This technology can affect vital life spheres like healthcare, supply chain, finance, and money flow. It also can bring new opportunities to the entertainment and art industry like NFT tokens and video streaming platforms.
The major advantages of blockchain technology are cyber security, an option to create immutable records of any data, decentralization of all operations, and sustainability of blockchain-based networks.
Your start-up business irrespective of the industry may benefit from blockchain technology for varied reasons. Approach Sumatosoft Blockchain Development Company for a quick, cost-friendly, hassle-free, secured and satisfying solution for your business.
- How do I start a blockchain business?
You can start your own blockchain business by identifying the ideal consensus mechanism, selecting the suitable blockchain platform (Chain Core, Ethereum, etc.), designing the nodes and blockchain instance, building APIs, designing the admin and user interface, and last but not the least, integrating AI (Artificial Intelligence), Cloud, Bots, IoT (internet of things), etc.
- What can we build using blockchain?
Multiple projects like Electronic Voting systems, Healthcare Data Management systems, Land Registries, KYC Online Verifications, Insurance data applications, etc. can all be built using blockchain.
- How do I become a blockchain developer?
To become a blockchain developer, you need to study and research the basics of blockchains academically and gather knowledge about cryptonymic and cryptocurrencies, as well as Ethereum and DApps.
- What are the top 5 Blockchains?
Ethereum, IBM Blockchain, Hyperledger Fabric, Hyperledger Sawtooth, and R3 Corda are the top 5 established blockchain platforms that can be sought in 2023.
- How do Blockchains make money?
There are varied ways in which blockchains mint money. A few ways include developing solutions for specific use cases, providing their software as a service, charging transactional fees, speculating cryptocurrencies, indulging in service level agreements, etc.
- What is the fastest blockchain?
TechPay Coin is the fastest and most scalable blockchain which performs 3,00,000 transactions per second followed by Solana which performs 50,000 transactions per second.
- What is the strongest blockchain?
If strong security is to be considered, Ethereum is considered to be the strongest among its competitors.
The post 21 Blockchain Business Ideas with Huge Potential for Your Startup appeared first on SumatoSoft.