7 Blockchain Business Models and how they work November 22, 2022
7 Blockchain Business Models and how they work <br><br>
7 Blockchain Business Models and how they work
For continual growth, every business or industry needs to adapt and flow constantly with change. Ecosystem-level collaboration and optimization are the need of the hour. At present, various industries from different sectors are looking forward to exploring blockchain technology. The industry application of this technology not only upgrades the firm’s workflow and initiates automation but also makes innovation possible at a breakneck speed. To get business outcomes with trusted data across multiple organizations and industries, and end-to-end visibility, the technology makes it possible for widespread deployment.
Why is there a need to own Blockchain Business Models?
Blockchain is a brand-new business concept in and of itself. Organizations can use blockchain to transform their operations into a decentralized platform, which will change how their firm operates. It alters the way entities operate, the transactional flow, and the earnings, and makes sure that growth is sustained throughout the alteration. A decentralized blockchain business model enables peer-to-peer trades and aids in building a reliable network. Tokens are used in blockchain-based business structures to generate revenue. Anyone that assists blockchain in achieving consensus will obtain a token with some value, and this value is based on the state of the market. There are a few benefits of working with Blockchain technology:-
- Get operations done quickly and accurately, speed up workflow, and trusted data management.
- Cost-efficient, Streamline multiple processes, clarity, and transparency.
- open gates to new opportunities and marketplaces with asset tokenization.
Types of Blockchain Business Models
- P2P Blockchain Business Model
A peer-to-peer powered business is provided by the P2P business model. Peer-to-peer has always characterized blockchain technology. End users can communicate directly with each other due to P2P blockchain technology. As a result, it is included in practically all of the other blockchain concepts we’ve spoken about thus far. Tokens, BaaS, or transaction fees are just a few of the various ways the P2P business model may be made profitable.
- Blockchain As A Service (BaaS)
This is the most common business model. Giving businesses an ecosystem to manage their blockchain system is part of it. Companies will be able to experiment, test, and carry out research within this environment. End users, such as established companies or new ventures, do not need to set up a blockchain before using it or worry about how it functions. BaaS eliminates the requirement for hardware, allowing businesses to fully concentrate on their development cycle. Ethereum and Bitcoin can both be used as services. One such illustration is EBaaS (Ethereum Blockchain as a Service), which Microsoft manages and is grateful for its partnership with ConsenSys. Examples of BaaS that are often used are Amazon (AWS), IBM (BlueMix), and Microsoft (Azure).
- Token Economy (Utility Token Business Model)
In the market, the utility token business model is common. Additionally, we have already outlined how we attempt to comprehend a blockchain business strategy through the utility token business model. Many startups, companies, or eCommerce websites are currently using a utility-based blockchain approach.
As the network’s engine and a facilitator of network operations in one way or another, Ripple is also a utility coin. Businesses can retain some utility tokens while releasing the remainder for network functionality. Tokenomics is a term for the concept of working with tokens.
- Blockchain-Based Software Products
To adopt blockchain technology as soon as possible, businesses must purchase and integrate a blockchain solution into their system. This gives opportunities to software development organizations to introduce solutions and ease the use and adaption of blockchain technology. Proving blockchain technology to organizations can be extremely profitable as, apart from getting a reasonable payment upfront, they will also need to provide support post-implementation.
The best example of this is the MediaChain blockchain being sold to Spotify. This was done to solve royalty issues prevalent in the music industry. Another reason for acquiring this business model is the lack of talent in the market, as companies do not want to go through the tedious process of acquiring talent.
- Development Platforms
Blockchain technology is continuously evolving and developing as it’s at a nascent stage. There are many issues and challenges that are faced by startups and businesses at the moment that can be addressed by bringing innovation via blockchain technology. innovation in creating and developing platforms that can embed decentralized business strategies is the need of the hour. Companies are increasingly concentrating on creating applications that could lead to blockchain infrastructure. These apps can be sent to the user via blockchain and cloud, enabling quick development.
One of those instances that offer tools, frameworks, and rules for blockchain development is Hyperledger.
- Network Fee Charge
Having a network charge connected to the blockchain itself is another distinct blockchain business concept. This kind of blockchain business model applies to both blockchain products like Ethereum and decentralized applications (dApps), which charge users a nominal fee for a variety of network-related activities.
- Blockchain Professional Services
At present, leading professional development organizations are offering these services to help startups and other companies get ready to adopt blockchain technology to their business. The trick here is to directly hire organizations who have mastered the art of blockchain development rather than investing in hardware, software, or team building. Smaller players can also be found in this market.
Talented blockchain experts who want to leverage their abilities to start a firm, and can offer their expertise and business can create a terrific blockchain business model.
To choose the right blockchain business model, one must first understand the nature of the business and the products they are offering.
Peak Blockchain consultancy and expertise in blockchain technology help you understand the suitable business model for your industry that helps you to grow your business as per market demands.