Crypto currencies have played a major role to boost the startup ecosystem. Both crypto currency and blockchain technology has been very transformational in nature over the years. The blockchain technology has proven to be really effective globally and it is being adopted on a really wide range. So let’s have a look at how the new crypto currency has boosted the startup ecosystem?
The crypto currency, blockchains and startups together are a new step towards an efficient future. Logistics, cyber security and policy enforcement, all have adopted the blockchain technology as it is really proving efficient. But are there are ally any major advantages that blockchain technology has on these cases in terms of transfer? The record keeping technology is based on a distributed ledger system. Your information is kept in a verifiable and permanent format. It is protected using PoW or PoS. it record every transaction in successive blocks. It can also be retroactively overwritten or modified. Simply by increasing productivity and reducing costs, the technology has the potential to add a major amount to the economy. The development of the IndianChain NITI Aayog, can turn out to be largest government-sponsored blockchain project. It is not an easy task to implement the technology. The global network of miners secures and verifies crypto transactions as their rewards are paid through crypto currency.
With the access to the blockchain community it opens up new doors for startups. You are able to contact and interact with world’s topmost entrepreneurs, developers, and investors. These are the people who are participating in the blockchain investing, consulting and building upon the blockchain. With more and more countries who have taken the initiative to promote blockchain technologies, the startup industry are getting even more help. This also helps the startups to develop new business opportunities with the blockchain technology. It is easier as there is no centralizes authority. It gives a sense of security and transparency for new startups. Aside from giving a global platform and reach, blockchain allows a decentralized way of building applications for them. Platforms like Ethereum have started offering companies an opportunity to use blockchain for free and to develop applications quickly using it.
The counter currency can be considered as a gold mine for the future of startups. However, this is not limited to startups only. Anyone looking to partake in investment opportunities can join the network and invest in them. Another great thing is that it takes away the monopoly of venture capitalists and angel investors away. This means that it provides a chance for retail investors to invest in any breakthrough technology with this. It would have been rather difficult with the traditional private venture fundraising.
As crypto currency provides a transaction with without any interference from a centralized authority, it is a golden opportunity for the net startups. It is rather cost effective and proves to be simpler and easier mode of transaction. This makes it easier for the budding startups. It can also be used as an alternative to the regular methods of payment between several networks.
Crypto currency is a method that has changed the way funds are raised during the initial stage of start-up. With the introduction of ICO as the go-to medium to raise capital it offers Initial Coin Offering to any investor in exchange for their investment. This means the startups can now avoid selling or sharing a stake of their company to the investors.
Therefore, it is no wonder that crypto currencies are kind of a life saver for any budding startups. With fund risings and a secure future, this can shape the structure of a country.