What is remarkable about the world’s billionaire list is how many on the list made their fortune by starting their own businesses. Those that didn’t start their own businesses eventually took control of them, such as legendary investor Warren Buffett. For Americans in particular, starting a successful business has been part of what some call the “American Dream”. In August 2017, the Trump administration held an event called “The Engine of the American Dream” which focused on the administration’s goal of helping small businesses thrive in the economy.
According to the U.S. Bureau of Labor Statistics, the number of new businesses tends to track the business cycle of the broader economy. So, when things are good, new businesses are created, and when hard times hit, businesses close. During recessions and troughs, entrepreneurs usually have a hard time getting started.
Yet no matter the stage of the business cycle, or the state of the economy, one fact holds true – survival rates for newly established businesses decrease exponentially as time goes on. This is because it is extremely hard to start and maintain a successful business. It is not enough to simply have a great idea; that great idea must be tangibly turned into a profitable product or service.
What’s more, starting a business includes a lot of unsexy tasks like notarizing documents, setting up bank accounts, paying legal fees, registering with local and federal authorities, and setting up payment systems. These tasks aren’t optional, either; they’re necessities.
In order to help businesses streamline startup costs, some companies are incorporating blockchain technology into their platforms. These blockchain powered platforms allow companies to use a decentralized marketplace set up their entire business.
The Fundamental Premise – Entities Should Control Their Own Data
Companies, no matter how large, are responsible for managing and securing their own data. The unfortunate truth is that centralized databases store a majority of the world’s data. When these entities are hacked, innocent parties get hurt.
Blockchain technology allows entities to create digital identities secured on a Self-Sovereign Digital Identity Ecosystem. The implementation happens through blockchain technology, and the keys are maintained in a digital identity wallet that isn’t stored anywhere on any network. It remains in the sole possession of each individual or business, who has the right and ability to share information at will, but only when they want.
The platforms are tokenized, meaning that the medium of exchange is cryptocurrencies. This means businesses can receive help from anywhere in the world without having to deal with exchange rates and third party banks. Businesses can also participate in token sales via the platform, allowing them to make investments and also receive funding of their own. The platform allows users to connect their crypto and bitcoin wallets and monetize their accounts.
The Impact of Blockchain Technology and Startup Businesses
Each such business can create a digital company identity wallet to store important startup documents. The blockchain platforms are designed to help businesses with menial tasks like notarizing forms and setting up bank accounts. They can also help companies manage capitalization tables and their corporate governance.
The result is that businesses are freed up to tackle larger issues like funding, relationship management, and sales and marketing. The company’s self identity wallet keeps a record of all important information, which allows the business to thrive on the decentralized product and service marketplace.
The decentralized marketplace offers a wide variety of services vital to business operations. The identity wallet makes it easy for startups to apply for the services they need to get their operations up and running, rather than filing paper forms by hand. The digital processing system allows for rapid identification and authorization, thereby saving the most valuable element of all – time.