In fact, blockchain’s decentralized nature presents many entrepreneurs with a difficult choice: build a decentralized system but forego a solid revenue stream, or create a centralized business model that leads to real profits but avoids the very aspect of blockchain that makes it so disruptive. Fortunately, there is a happy medium: generally decentralized efforts that retain some centralized component that affords the creator of the platform with a mechanism for collecting transaction fees or otherwise cash in on their efforts.
In fact, while blockchain is still largely in the proof of concept phase, the hotbed of innovation that is the blockchain community is shaking loose a number of disruptive, yet rational business models – rational in the sense that they offer a solution to a business problem that customers will pay for. The variety of such blockchain businesses with paths to profitability is striking.
In addition to the two such vendors in last week’s article, here are four more that illustrate breadth of innovation the blockchain marketplace is bringing to potentially profitable business ideas. Blockchain Expo, Olympia, London Product Authentication to Combat Counterfeiting Counterfeit products are an exploding problem worldwide, as illicit manufacturers get better at creating knockoffs of everything from sneakers to soy sauce.
Brands suffer due to lost revenues and hits to their reputation, and consumers must deal with quality and safety issues. The chips uniquely identify the individual item and offer robust encryption to thwart counterfeiting. Unlike Arianee, a vendor I discussed in my last article that relies upon serial numbers, the brands that use Seal’s platform must incorporate the NFC chip into their manufacturing process.
This requirement is unquestionably a challenge Seal must overcome. Each chip is inexpensive but still adds a cost that makes Seal most suitable for luxury and other pricey items. Its blockchain platform promises a token economy that encompasses brands, retailers, as well as consumers, who should be able to use tokens to purchase products. Read more from forbes.com…
thumbnail courtesy of forbes.com