Cryptocurrencies are gaining traction and acceptance across all demographics. Starting a business in the blockchain space has virtually limitless potential. Digital currencies and the technology that powers them have only been around for over 12 years, and the industry is still in its infancy. Let’s look at four basic blockchain startup ideas to enter the industry in 2022.
Crypto tax advisory
You could already run your own tax consulting firm or work as a tax advisor. In that case, you would venture into the world of cryptocurrencies to establish an additional revenue stream. You could, however, start a crypto tax advisory from scratch.
The purchase and sale of cryptocurrencies is a reportable event for the IRS. Hundreds of thousands of trades are executed by many monthly traders and investors. Keeping track of how much each trade made or lost, as well as filling out the paperwork, can be a real pain. The trader would benefit from automation, and it would be highly cost-effective.
Create your digital coin
Making your digital coin is more straightforward than it appears. Many cryptocurrencies are open source, and one of their most valuable features is decentralization. Digital coins are created and managed by a network of nodes, which create the coins and record all transactions.
This technology, known as the blockchain, is the most challenging piece of the puzzle. It would require many nodes to function securely. Each node is a self-contained computer, and you would then need to develop the algorithm that supports the blockchain.
You could define your digital coin’s parameters if you created your blockchain. You can control the initial volume, the final total maximum volume, and the difficulty of mining the coin. However, there is another option: use the blockchain of an existing digital currency.
Those looking for a large-scale project should be a cryptocurrency exchange. People can use exchanges to buy and sell digital coins, often hundreds of different ones. Each transaction, deposit, withdrawal, and transfer generates a fee for the exchange.
There are already several types of exchanges, so you’d have to do some research to figure out which one is best for you. Alternatively, you may devise a novel solution that addresses issues that have not yet been addressed. Here are some examples of exchanges:
- Decentralized exchanges
- Centralized exchanges
- Ads-based exchanges
- White label exchanges
- Order book exchanges
- Hybrid exchanges
You will need an exchange software provider and a payment processor to get this project up and running. This startup type is also capital intensive, so you may need to raise some capital to get through all the steps required to have a finished product ready to launch.
Although cryptocurrencies are gaining traction among retailers, we are still far from the widespread acceptance of digital coins for purchasing anything. Many cryptocurrency users want to use their coins for everyday purchases.
To avoid handling storage and delivery, you can start an eCommerce business that accepts cryptocurrencies and uses drop shipping. You must either create your eCommerce website or use the services of a company such as Shopify.
To facilitate transactions, an exchange is required. This is already done by Coinbase Commerce, making the process very simple for online merchants. Coinbase Commerce has already integrated Shopify, and you can also use Shopify to access dropshipping services.
Accepting payments in digital coins incurs no merchant fees. You will be charged a transaction fee when converting your cryptocurrency to fiat money. Unless you are a crypto player, you may need to exchange digital currency for fiat currency regularly to avoid the risk of long on digital coins.
Decentralized finance is still in its early stages, and crypto coins have a long way to go before they are widely accepted. However, as with all pioneering moments, there is still a lot of unexplored ground, creating more opportunities. We hope you find some inspiration to get involved in blockchain startup ideas in 2022 as the market matures. If you need more information about blockchain development solutions, contact SmartOSC.
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