I start with a small piece of introduction from David S. Rose ‘s answer about what blockchain actually is.
- Blockchain is a database that can no longer be changed
- Blockchain makes it possible to create, identify and manipulate unique digital objects
- Blockchain makes it possible to create a digital swap
- We can integrate objects, transactions and exchanges into one contract using cloud technology
The question you can ask now is:
What concrete products or services does the startup offer with this technology?And if this is clear: what are the expected cash flows (inbound and outbound) of the company? And how confident are these cash flows?
The financial industry looks at the possibilities of blockchain, but at the same time the infrastructure of the large market parties is not yet ready for widespread use of the application.Blockchain may, in the long term, put pressure on the services of parties such as DTCC, although this party is likely to realise that too. The emergence of blockchain will be rather in a sub-segment where there is currently a lot of inefficiency and where the degree of automation (especially straight through processing, no manual work) is low.
An example that is widely used is real estate, here are many paper processes around databases that can no longer change (unless a transaction occurs, but that is a new record in the database) while the objects are uniquely identifiable ( Postcode, house number, addition).
The question for such a startup is thus: What unique problem do you solve, and how does it ensure “return on investment”?
In a good answer, a clear pitch, I find an investment in such a startup certainly interesting.
And what does that start-up continue?When it comes to crypto money, then no. Otherwise it might be interesting but I don’t find blockchain a risky investment in principle.
The problem with Blockchains you actually see already in the name.The technique makes chains of data and those chains are getting longer and longer as more transactions follow. This means that at some point these chains are so long that they will contain huge amounts of data and thus create a bottleneck. After all, every bitcoin is a small piece of cryptologic data that has subsequently been millions and potentially billions of transactions and all those transactions must be retained.
Furthermore, it is good to think about what other techniques can be used with blockchains.What data do you want distributed over a large PvP network? What applications are ultimately coming up? And are there enough people who want to keep themselves busy with it?
Because I can build a system to be able to vote electronically (anonymously) via blockchains, but if there is hardly anyone interested in it, it will not be anything.While the algorithms behind blockchain are extremely complex and very experienced developers are needed to set up the basics. And that is costly.
We invest in profit expectations and not necessarily in technology.
To date, I do not see any practical applications of Bitcoin in addition to new online payment methods.If the startup in a few sentences can explain their blockchain in Jip and Janneke Taal then I want to invest in it. Because if it can be in short simple terms, then everyone can understand and there can be a chance.
I would invest in a good idea.With a good business case. What technique is used for this is interesting but not decisive.
An investor in the automotive sector also does not invest in “everything with wheels”.But in a good idea.
We have a startup based on blockchain technology.It depends on idea, team, mission, vision and what applications blockchain will have. Blockchain is a technology that can provide a lot of potential but you have to use it for the right applications.
Blockchain is distributed technology, but is also a first generation of a concept.BitCoin, for example, is based on blockchain.
However, if I were to invest money, I would go looking for companies that are deploying to distributed energy supply.No one has a glass sphere, but I strongly believe that we are going to evolve from a centralized economy to a distributed economy.
Energy supply could be a pioneer in this.
No not in a startup.The probability of failure is extremely high. We have seen this on all icos, which so far has not yet produced anything.
Look ns to IBM.This is a good way of working as a blockchain service provider.