6 Amazing Blockchain business Models you must know(with examples)
Before we jump straight into the blockchain and cryptocurrency let’s first build a strong foundation by understanding the web.
What is the difference between Web 2 and Web 3?
In Web 2 we use a backend programming language like (Node JS or Python) and build an app and host it on servers with providers like AWS, Google Cloud Platform, etc
But in Web 3 we need a node from alchemy and build a smart contract followed by deployment on Ethereum or polygon.
What are the Different types of blockchain business models?
1. Token Economy — Utility Token Business Model
So, all Blockchain uses Distributed ledger technology (DLT ) which requires consensus, and a token is one of the mechanisms to reward the token miner or token holder.
Example: Basic Attention Token (BAT)
BAT token works with the Brave browser, which is designed to be secure and private. The Basic Attention Token allows for a new advertising revenue model that does away with the need for constant tracking of user behavior. Brave users can earn BAT by opting in to view advertisements. BAT can then be used to tip content creators on their websites or on Twitter.
But how the heck do these companies issue these tokens?
These companies issue some tokens at discounted prices at their Initial coin offering (ICO).
These are generally bought by an early adopter who believes in these projects and will make money by holding them for some time.
But Keep an eye on the tokenomics before you buy any Utility based Token.
If you carefully look at tokenomics of Solana you will realize that insider still holds more than 60% of the token while Ethereum foundation/ insider only holds just 7–8% of the tokens.
2. Blockchain As A Service Business Model (Baas)
BaaS is about building an ecosystem of services like Amazon (AWS) but in web 3 space.
Example: Polygon Blockchain as a Service (EBaaS).
From development to storage to deployment AWS has more than 200 services covering everything in your tech stack.
You can spin a server with Amazon EC2 Use Amazon RDS to manage a SQL database and store static files in an Amazon S3 bucket.
Similarly, Polygon has a series of products for the web 3 ecosystems. So whether you want to sell NFTs or cryptocurrency.
3. P2P Blockchain Business Model
The peer-to-peer (P2P) blockchain enables end-users to interact with each other directly without any intermediary.
Example — IPFS
IPFS, an interplanetary filesystem, takes advantage of the blockchain business model.
Also, there is mining software that will let users share their unused storage space.
4. Blockchain Node-Based Aggregators
They are basically the Amazon for blockchain which means you will simply do an API call for your favorite blockchain, and you can use that service.
Example: Alchemy is a node provider for a variety of blockchain
It offers tools for monitoring, analytics, alerting, debugging, and logging for cryptocurrency-linked software.
5. Network Fee Charge
If a blockchain business model charges some network issue to deploy some dApps on the network.
For Example Ethereum and NEO
These network charges developers Eth and NEO to make their dApp live.
Just clap👏 and follow 👏 if you liked the content.
Would you like to get a detailed copy of these business models?
Buy my latest e-book on 31 Startup business models(300+ pages)🚀
❤️ Enjoyed the Article?
- Please share it with people on your Linkedin and Twitter networks.
- Click 📩 Subscribe to get an email every time I publish an article.
Read more about startup businesses from the recent articles
- Freemium Business Model — A business model used by Spotify, Slack, and Notion🆓
- Why Linkedin, Shopify, and Netflix are Obsessed with Subscription Business Model? 🤑
- Marketplace Business Model: A Secret Ingredient behind the success of Amazon, Airbnb and Uber💰
- Why do startups chase growth to build business moats? 📈
- CAC & LTV are confusing! So I have simplified them to get you up to speed (fast) 🚄
