Blockchain: Lifeline to Startups? | Teen Ink

Blockchain: Lifeline to Startups?

July 17, 2021
By meaviral BRONZE, Vadodara, Other
meaviral BRONZE, Vadodara, Other
1 article 0 photos 2 comments

The media floods us with buzzwords every day. If you are like me, all these buzzwords will make you curious. And your time is limited, just like mine.

Introducing to you, the Blockchain Technology and a Business Model for Start-ups that can guarantee their steady growth and survival in this highly competitive world. On diving into the field of Blockchain, the technology behind cryptocurrency, I found it to be extremely fascinating and have done extensive research on the topic because of its limitless potential.

Being an aspiring entrepreneur, I started networking with people who were launching or already had founded start-ups to get an idea about their challenges.

This is the next step in the evolution of trade and finance which will completely change our perspective of the world. Blockchain gives us the age of digital ownership by allowing us to own digital goods, assets, and data.

The most beguiling future of this technology is the generation of funds for start-ups by democratizing access to investment capital. This is based on real-life cases and an approach to solving these problems.

The model is suited for highly competitive industries which are everywhere because every business is online now and products or services can be delivered to any part of the world. This will provide global access of capital and network to the start-ups.

It is based on the essence of entrepreneurship. If our goal is to inspire innovation and empower more people to build companies of all sizes, we need a new way to fund those ideas. We need a more flexible system that does not squeeze entrepreneurs and investors into one rigid financial outcome.

Start-ups usually compete to get money from the investors, but recent data shows ICOs(Initial Coin Offerings) are generating more money than investors. So instead of depending on Venturing Capitalists what if different companies come together to do an ICO that combines the value of all participant companies and raises money as a group.

The profits for everyone will be multiplied many times than what they would get individually. By issuing a digital currency tied to the value and services that the company provides. The currency acts like shares in a company, like on the public stock market, increasing in value as it's traded online. Most important, ICOs expand the investor pool, from a few hundred venture capital firms to millions of everyday people, always excited to invest. This market represents more money and safety. It represents more investors, a greater likelihood to get funded, and a brighter future for all.

In Layman’s terms, it is time to get rid of the middlemen who only gain profits and make the whole process of funding complex and restricted to only large corporations.

This enables the investors to withdraw their money safely with better returns and reinvest potentially funding new faster.

It will change people’s perspective about starting a business or founding and investing in start-ups, having a long-term impact on the economy. This is way more exciting than just trying to find and investing in the next billion-dollar start-up.

The author's comments:

A young writer, Aviral is passionate about Piano and is an aspiring entrepreneur who wants to make a mark in this fast-moving and ever-changing world. He enjoys engaging in programming and is a zealous Badminton player in his free time.

Always wanting to improve the lives of people around him, he believes in steady growth and giving back to the community. After working for an entrepreneurial networking start-up, he has gained extensive knowledge on practical knowledge of running a start-up and the problems faced by founders and formed networks with peers all around the globe.

He plans on pursuing a bachelor’s degree in Computer Science in Fall 2022. 

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This article has 2 comments.

on Jul. 31 at 9:32 am
meaviral BRONZE, Vadodara, Other
1 article 0 photos 2 comments
Awesome article!

on Jul. 20 at 1:34 pm
meaviral BRONZE, Vadodara, Other
1 article 0 photos 2 comments
Hope everyone liked this article 😃!!