Uses blockchain technology for monetization
When people think about generating revenue and making money with blockchain technology, the mind immediately jumps to the prices of tokens like BTC and ETH that have characterized the last half decade in the industry.
I’m not into any of that “crypto goes to the moon” stuff. Instead, I’ll highlight a few ways blockchain technology can help businesses generate new revenue and save on costs. In doing so, I hope to show you the potential this unique technology has to unleash greater efficiency, unlock new opportunities and shake up the status quo.
Data management and ownership with blockchain technology
We live in a data-driven world, but many people still need to understand how blockchain technology will fundamentally shake things up when it comes to data management and storage.
To understand the implications of blockchains for data management, think of public ledgers simply as databases. Businesses, governments, individual entrepreneurs or others can simply write data to the blockchain by paying nodes to process the transaction. Of course, this data is hashed, so only those with the private keys will be able to extract and see it, but a time-stamped record of the transaction that wrote the data to the ledger will be visible to everyone.
Having all important data stored privately in one secure database will bring obvious benefits to any business. The costs associated with securely storing data are enormous, and writing to the Bitcoin blockchain is extremely cheap. It also eliminates the possibility of major data breaches, which are estimated to cost $9.44 million per breach as of 2022, not including reputational costs.
However, cost savings are only one side of the coin. Thanks to blockchain technology, companies will also have new ways to monetize their data. While in today’s world it is simply harvested by mega-corporations in exchange for using their services and platforms, in a blockchain-powered world, anyone who wants to access any type of data will have to pay fees to do so if the owner decides to the.
How can this work in practice? Imagine a company in the financial sector that stores records on the blockchain. If another company, such as one that trains machine learning models to spot patterns in financial data, wants to access the data to gain insights from it, the firm can provide access without giving away any details about clients for a micro-fee per record . This can apply to any industry, and even individuals, without violating anyone’s privacy.
To understand more about how data can be stored on the public blockchain securely and how partial access to records can be granted to ensure privacy is maintained, check out Dr. Craig Wright’s The Bitcoin Masterclasses in London.
Micropayments and the business models they unleash
While many have been distracted by the meteoric rise in the price of BTC over the past decade, many still remember that it was originally designed as a peer-to-peer electronic cash system that could facilitate micropayments on a global scale.
Micropayments are a big deal, enabling several new ways to generate revenue for businesses of all kinds. In addition to the aforementioned ways of charging for access to data owned by the company, micropayments represent new ways of getting paid in various sectors.
For example, companies involved in the entertainment sector may charge a few cents per play for things like songs. Subscription-based models like Spotify arose largely because it was impossible to make such small payments before Bitcoin came along.
While larger payments of a few dollars for things like movies are currently possible with credit cards, it’s easy to forget that only 22.1% of the world’s population has access to a credit card. In many countries, it is difficult to buy something online with a card due to the high incidence of fraud. Even in relatively rich countries such as Saudi Arabia, only 25.4% of the population has a credit card, which excludes the majority from online shopping. Blockchains that facilitate low-cost transactions can bring these people into the global economy and allow them to shop online, creating new customers for businesses.
While increasing the size of your customer base is always a good idea, there are other things blockchain-powered electronic cash systems can do. The ability to make micropayments enables forward-thinking companies to create new business models, disrupt established companies and give potential customers more choice. For example, paying small fees per in-game interaction provides an alternative to the subscription model, allowing companies to capture players who are either unable or unwilling to pay subscriptions, or who would find it cheaper to use the micropayment-based pay-to -play model.
Also, publishers can use micropayments and blockchains in different ways. Charging for access to online content becomes much easier and allows a business to ditch the endless ads, cookies and paywalls that have ruined the online user experience. Paying a few pennies to read an article that doesn’t require payment details is much more palatable than entering your card details and being locked into an annual subscription.
These examples make the same essential point: blockchains and electronic cash provide businesses with new ways to expand their customer bases, build new business models, and offer an alternative way to get paid. Best of all, every financial transaction is time-stamped on the immutable public blockchain, making bookkeeping much easier.
Cost reductions across all sectors and industries
Those who own a business of any size will already know how much money that could otherwise be spent on productive, income-generating endeavors is chewed up by admin and other similar costs. Blockchains can help reduce these costs and consolidate various time-consuming processes, resulting in cost savings. As the famous steel magnate Andrew Carnegie once said, “Look at the costs, and the profits will take care of themselves.”
As we have already touched on, a scalable blockchain will enable companies to store all important data cheaply and securely in one database. This reduces the costs associated with things like data storage, regulatory compliance and potential fines for data breaches.
Likewise, blockchains can make business deals much more transparent to those on the inside. Seeing the financial position of a company in real time, what was moved, where, when and by whom, and where any record is currently stored, saves valuable time and resources that can be put to better use.
In short, blockchains make businesses, government departments and other forms of organization more transparent and efficient. A penny saved is really a penny earned, and with more capital freed up for investment, companies can increase their income from the savings that blockchain technology makes possible.
Join us at the London Blockchain Conference to find out more
This only scratches the surface of how blockchain technology can save businesses valuable resources and unlock new revenue streams. Public, scalable blockchains are multifaceted tools that will impact every sector and industry. Understanding how they work and what they can do for your business early on will give you a competitive advantage.
The London Blockchain Conference takes place between May 31st and June 2nd, and we’d love to see you there. It’s not just a BSV blockchain conference – we want to hear from anyone interested in legitimate and legal use cases for blockchain technology.
To secure your tickets or request a voice machine at the world’s largest blockchain conference, visit the London Blockchain Conference website today!
Watch: London Blockchain Conference 2023 Brings Government Business into the Blockchain
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