You are probably aware of the popularity of blockchain technology. Thousands of companies around the word are developing projects and applications for “the blockchain”.
These companies are seeking funds, from relatively small amounts to millions of dollars per company, to develop applications, mostly based on smart contracts.
In 2017 blockchain ICO’s have raised over two billion dollars in startup funds. In 2018 that amount has already passed the three billion dollar mark (See: www.coindesk.com/ico- tracker/).
If you are a believer in distributed ledger technology, as I am, or if you are in the blockchain business, you know what I am taking about: there is a great opportunity for designing new business models based on the reliability of replicated, distributed data.
Unfortunately, many startups are using the blockchain as a keyword just to raise money for any new idea.
When one such person, a CEO of a blockchain startup, asked me what we were developing at Gorbyte, I answered: “We are developing a new crypto-network.”
Granted, my English is still plagued by my Italian accent, but I am pretty sure I pronounced that clearly. So, I was surprised to hear his response: “What is that?”
Now, stop and think for a second. If you are developing an application on the blockchain and presenting it to the world as a great business opportunity, you must know that blockchains aren’t miracles from God. They do not appear like manna from heaven!
You may have asked yourself a few basic questions, like:
- Who provides the blockchain?