Businesses are always in the search for the best business models in the market. Having an efficient business model that maximizes on profits and minimizes on cost can be the difference between market dominance and total annihilation for a business. Since its advent a decade ago, blockchain technology has continued to revolutionize business models globally. Blockchain-based software products, tokenization and peer-to-peer blockchain business platforms are just some of the ways in which blockchain is transforming business models.
Tokenization is one example of how blockchain is transforming business models. Tokenization is the creation of units of value, known as tokens, that enable a self-governing business model and allows users to interact with a company’s products. Tokens also facilitate the distribution of rewards and benefits to stakeholders.
Blockchain technology has enabled businesses to easily generate tokens. There are two types of tokens: utility tokens and security tokens. While utility tokens are coins that are backed up by a project, security tokens represent shares in a company. The tokens enable the business owner to generate capital from investors and also incentivize his clients to interact with his products and services.
Blockchain-based software products are yet another lucrative business model that has demonstrated how blockchain is transforming business models. Despite most businesses realizing the benefits of the technology, not all of them can afford to build blockchain applications. This has given rise to a high number of businesses that offer blockchain products and services.
Blockchain-as-a-Service has also emerged as a rapidly-expanding business model. As with any other technology, there are plenty of businesses which prefer to use it only for specific tasks. For these companies, it doesn’t make sense financially to incur all the setup expenses. They thus rely on companies that can provide blockchain platforms for a fee.