The beautiful thing about blockchain technology is that it is mainstream enough that just about anybody can create bitcoin wallet account but still new enough that if you create your own blockchain you are one of the pioneers. And early adopters of new technology are usually rewarded when it takes off.
Blockchain technology is still in its infancy and has yet to fully fulfill its potential. If your business can use the blockchain, then this is an excellent time to start. It may seem like you’re late to the party with so many different cryptocurrencies on offer but the reality is that it is never too late.
Not only will your company benefit from the technology, but you can also fund your startup by offering your own coins. Instead of relying on venture capitalists, you can do a sort of crowdfunding with the promise of profits from your own coins.
Benefits of issuing an alt coin
The most obvious benefit is that your project needs funding and issuing a cryptocurrency is a way to do so. But, it does go beyond that.
For instance, the coin that you are issuing is there to help build your blockchain. To verify the nodes, the coins are the ideal incentive. Plus, there is going to be a lot of computing power used so it helps pay for the electricity to power the computers of the users doing the encryption.
It’s also a great way to stand out from your competition. You’ll get some buzz among investors and in the blockchain communities, especially if your business has a good idea behind it.
Why you should have your own blockchain
Underlying this whole thing is the fact that you will have your own blockchain where your business will be founded.
And with this comes a lot of great advantages. These advantages work as selling points for your customers as well as the people willing to buy your coins.
Doing business on the blockchain will reduce the instances of fraud to almost zero. This builds a lot of trust with your clients and customers as they can be sure that their transactions are immutable on the ledger. Transactions can’t be deleted or lost and their data can’t be stolen as any change to the leader would have to be verified. And they can’t be hacked as the hacker would have to get access to the thousands of computers where your blockchain resides and not just a single server somewhere.
Your operating costs are much lower as the blockchain requires no third party to act as an arbiter for any of the transactions. Everything is done on the decentralized network so barely any fees are paid. Transactions also happen faster since they don’t rely on a bank or other third party.
Then, if your company succeeds, so do all the people who have coins. They can either use them to buy tokens to use on your platform or cash them out and enjoy the profits.