In this article, we are going to dive deep into the abundance of blockchain business ideas to consider in 2022. We will discuss various business-to-business (B2B) and business-to-consumer (B2C) models and how they differ. Plus, we explore several aspects to consider before committing to setting up a blockchain business. Firstly, however, we’ll look at why businesses are looking at integrating Web3 aspects into their business model.
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Why Web3 and Blockchain Technology
The Web3 evolution is facilitating peer-to-peer computational communications, removing third-party middlemen present in payment and data exchanges. Thus, incorporating distributed ledger technologies (DLTs) (such as blockchain) increases the speed and cost efficiencies of transactional activities. As such, DLTs have massive potential to reduce existing overheads and improve workflow and communications in active business models. Additionally, the innovative and cutting-edge technologies present novel opportunities for new blockchain business ideas to emerge.
Blockchain is essentially a piece of code that is continually operative across a network of nodes (computers) around the globe. As a decentralized technology, there is no single-point-of-failure. Also, every transaction added to the chain must be validated and verified by each node in the network prior to immutable confirmation.
Each blockchain uses its own consensus model that allows all nodes in the network to agree a transaction is valid. Moreover, consensus mechanisms or algorithms are notoriously difficult to manipulate. Consensus models operate such that it is more profitable to contribute fairly to a network than it would be attempting to manipulate the chain. However, it is worth noting that the size of a blockchain network (i.e., the number of active nodes or validators) plays a significant part in the security of the network. Smaller networks are more susceptible to hacks and attacks due to the lesser expense to do so.
Nevertheless, introducing blockchain exponentially increases security in existing transactional operations by removing human error. Instead of trusting humans, transactions can be mathematically verified using computer science and cryptography.
Exploring Different Blockchain Business Ideas in 2022
The introduction of cryptocurrencies and non-fungible tokens (NFTs) in turn offers new opportunities for businesses. As a multi-utility multi-discipline technology, there is a wealth of blockchain business ideas for innovative entrepreneurs to investigate. Regardless of existing knowledge or passions, it is more than likely possible to incorporate aspects of blockchain or other Web3 technologies to improve the business design and overall user experience. Broadly speaking, we categorize the following blockchain business ideas into two sections, business-to-business (B2B) ideas and business-to-consumer (B2C) ideas.
B2B Blockchain Business Ideas
‘Business-to-business’ or ‘B2B’ refers to a business model that has a primary income from providing goods or services to other businesses. Depending on the goods or service, the business buying the product may sell this on to end consumers. Some of the most popular global B2B brands include General Electric (GE), DropBox, and certain aspects of Amazon’s business model.
As distributed ledger technologies (DLTs) is a nice and rapidly-growing market, now is a very good time to be considering blockchain business ideas. Starting a business during the early stages of adoption of a new evolving technology can have many benefits. This includes the ‘first-mover-advantage’ (the first in the field), or the ‘second-mover-advantage’ (offering the services of the first-mover while ameliorating any public drawbacks). Also, founding a business while a technology is still niche can aid in public relations (PR) initially as ‘cutting-edge’. Further, if the business model is sustainable, it will achieve an increasingly credible reputation over the years as being a pioneer in the industry.
B2B Consulting
The first on the list of blockchain business ideas is B2B consulting. Although cryptocurrencies and non-fungible tokens (NFT) have trickled into mainstream media headlines in the past few years, there is still much confusion and misunderstanding surrounding the underpinning technology. Underneath the branding ‘mask’ of businesses are real individuals, each with their own set of experiences and expertise. At this stage of the Web3 adoption, many business owners may be seeking ways to reduce overheads or stay relevant, but not be aware of the full potential of blockchain. As such, businesses are willing to pay consultants as experts in the industry, to educate them around blockchain.
The exact role and responsibilities of a blockchain consultant varies. However, the overall aim is to educate business leaders about the fundamentals of blockchain and the benefits of incorporating it into existing IT infrastructures and business models. Plus, blockchain consultants don’t often execute the development side. Rather, consultants advise on the best modes of practice, existing developers, and tools available to use blockchain to improve business operations.
Web3 Development
Another in-demand B2B blockchain business idea is a Web3 development company. After businesses discover the advantages of blockchain, they will need people that know how to implement it into their existing IT system. A Web3 development business model could take several forms, including in-house or remote work. Also, a Web3 development business is highly scalable. With options of freelance, contract, or sole trader work, or employing a team of developers, Web3 development is a highly progressive area to consider. As more people use Web3 and adopt blockchain, Web3 development is fast-becoming a staple in forward-thinking businesses. Ergo, with the blockchain market value set to rise from $5 billion in 2021 to over $67 billion in 2026, a B2B Web3 development business could be a profitable start-up for entrepreneurs.
Web3 Marketing
Next on our list of B2B blockchain business ideas is Web3 marketing. For non-programmers with a keen eye for detail, a basic understanding of consumer psychology and/or SEO (search engine optimization), these skills are transferable to the Web3 industry. Web3 start-ups will need marketing assistance of their own to advertise their services to potential clients. Therefore, there is a demand for people who understand the complexities and nuanced nature of decentralized technologies who can transcribe and present this information in engaging and easy-to-understand content.
A Web3 marketing company is another highly-scalable business model with plenty of demand and potential for adoption. Existing and up-and-coming crypto and blockchain projects will all mostly require Web3 marketing services to make their brands known. Entrepreneurs with existing experience in Web2 marketing can easily upgrade their knowledge and skills to be applicable for Web3.
Web3 SaaS
Web3 software-as-a-service (SaaS) products are one of the hottest up-and-coming blockchain business ideas in 2022. In short, Web3 SaaS providers allow other businesses to integrate various aspects of blockchain seamlessly with their products. There are a plethora of SaaS products applicable to Web3 development and integration. Creating a Web3 SaaS company presents multiple avenues for targeting consumers. For example, existing Web2-based businesses looking to introduce certain Web3 aspects may consider SaaS products. Also, many innovative crypto-based startups seek novel and unusual ways to improve a project’s security, sustainability, and user experience. Web3 SaaS products could include analytical tools, APIs, storage, or smart contract auditing.
Venture Capitalist/Angel Investor
For entrepreneurs with access to spare capital looking to make a passive income, becoming a venture capitalist (VC) could be a lucrative opportunity within the Web3 industry. In short, VC firms or ‘angel’ investors inject capital into up-and-coming startups. Many new businesses require substantial up-front capital to get the business running profitably. Investors will loan businesses an investment sum usually in exchange for a share of the business and a higher return than their initial investment.
Over the years, as the business becomes profitable, VC firms will receive their initial investment alongside a percentage profit. Depending on the initial contract, the stake a VC holds in a company may reduce as the return on investment is made.
B2C Blockchain Business Ideas
Next, in our list of top blockchain business ideas, we consider different models focusing on business-to-consumer (B2C) services. Unlike business-to-business (B2B) operations, B2C services are consumer-facing and facilitate direct interaction with the end-user. This could be either in-person or online. Popular global B2C business models include Walmart, GAP, and many parts of Apple’s business infrastructure. By design, the mass population are more familiar with B2C businesses than B2B operations. Resultantly, this means there is a substantially larger market to target products or services. Plus, there is arguably more room to grow, scale, and attract new customers. However, B2C startups can be riskier than B2B with higher potential for more volatility in market fluctuations. Nevertheless, B2C startups can sometimes yield higher returns at a faster rate than B2B depending upon the product, demand, and quality of marketing.
Education
Just like businesses, the regular every-day individual is likely to have many misconceptions or apprehensions surrounding cryptocurrencies. However, learning about the history of money, the difference between currency and money, and how the current financial infrastructure operates is arguably some of the most valuable things to aid in obtaining and preserving economic independence and freedom. Additionally, people unfamiliar with operating computers and technology will likely need support in creating and navigating the Web3 world.
As we approach a stage of mass adoption of crypto and blockchain, creating some form of education can be both profitable and add social value. Blockchain education can take many forms, including courses, videos, books, blogs, and 1-2-1 consultations. Moreover, while the technology is still young, this blockchain business idea is easy for entrepreneurs just starting their crypto journey. If you have learned how to install a Web3 wallet and interact with a decentralized application (dApp) on different blockchains, there will be someone else willing to learn that from you. However, for people to want to use your educational content, it must be clear, concise, engaging, and easy-to-understand for beginners.
NFT Designer
Non-fungible tokens (NFTs) are pieces of code that represent unique data on a blockchain, including digital and real-world off-line assets. As such, NFTs are applicable to a range of industries including supply chain management, real estate, healthcare, and the energy sector. Predominantly, most people associate NFTs with music, art, and graphics. Due to the borderless, permissionless, and peer-to-peer technology, artists receive substantially higher profits for their work on Web3 platforms rather than Web2. Therefore, there is a growing demand from artists to put their work out as a cryptographically-secure digital asset.
As any practicing artist knows, there is far more work that goes into an artistic role than solely the creation of work itself. There is marketing, networking, accounting, and the management of operations at least. As a result, there is a gap in the market for artists looking to hire NFT designers that can export, list, and educate artists on selling digital assets. NFT designers may take a small fee from the sale of assets for their services. For artists, hiring NFT designers to sell assets can still be more profitable than using traditional services. Plus, this gives more time, control, and profits back to artists.
Critical Considerations
With so many blockchain business ideas available, it can be difficult to decide the best opportunity for you. Therefore, below we discuss critical considerations for any entrepreneur considering creating a blockchain startup.
Legalities
Most importantly, before registering a name or planning any services, check the legal status of cryptocurrencies in your local jurisdiction. Many governments are apprehensive of blockchain startups and often require businesses to register with legal and governmental bodies. Each country has its own legal requirements which can cause challenges for international businesses. Make sure to do thorough research before starting any business.
Unique Selling Point (USP)
Every successful business has a USP (unique selling point) to make it stand out from the rest. Consider what your business will do differently to improve existing services available. Alternatively, evaluate existing gaps in the market to determine if there is a demand (or reason for a business model not existing).
Public, Private, or Hybrid
All blockchains operate across a decentralized network using computational power and cryptography to validate and record transactions. However, there are two types of blockchains. There are public networks where every transaction is transparent and publicly viewable and private networks where only users with secure private keys can view the transactional history. Public blockchains are ideal for businesses to register and display their goods or services. Conversely, for security reasons, many businesses opt to keep their operational activities on private blockchain. However, keeping inlign with the blockchain ethos, businesses can use a customized hybrid public/private blockchain model, blending the best of both worlds.
Exploring Different Blockchain Business Ideas in 2022 Summary
For existing and aspiring entrepreneurs, the list of blockchain business ideas is near endless! The universal and multi-industry applicability of blockchain makes for an exciting time of creativity and innovation. If you’re considering setting up a blockchain business there are many options to consider. Whether you choose to go solo as a freelance contractor or onboard a team of employees, there is space for forward-thinking startups in the blockchain industry. Moreover, as blockchain is relevant in so many sectors, it’s likely you could weave aspects of blockchain into your existing passions!
Plus, anyone, anywhere has the ability to work in blockchain. If you’re considering working in Web3, Moralis Academy is the perfect place to start. If you would like to expand your understanding of how blockchain works, see our Blockchain & Bitcoin Fundamentals course for more! Alternatively, our Blockchain Business Masterclass teaches non-programmers how to incorporate blockchain into existing IT systems! Plus, for free daily content, see the Moralis Blog including our “What is Luna Token?” and “Top 5 Crypto-Friendly Countries” articles! Or, see our “Why to Learn Web3 Development” or “Stablecoins Explained” articles next to further widen your Web3 knowledge?
