Is blockchain technology really an advantage? Of course, the answer is “Yes”. How do we know? Well, that’s crystal clear! As a software development company who integrates blockchain in our clients’ businesses, we are fully aware of how impressive its results can be. Here we present you an overview of the most outstanding blockchain startups to watch in 2020 and beyond.
By the way, this article is one of the Technology for business series. But there will be no more theory that may tire you out, only real blockchain cases! We hope that this will motivate you much to recreate their success.
Blockchain technology has gained huge popularity in recent years. In fact, according to Deloitte in 2019 53% of companies considered blockchain implementation to be one of their top-5 priorities.
Aside from this, there are even more fascinating data. To date, you can find about 5000 blockchain startups on AngelList, and more than 1100 investors. So, without further ado, let’s move on to the most outstanding blockchain cases that currently exist and look at how they achieved their place in the industry.
Why people choose blockchain as a base for their startups: short explanation
Even though the technology world is full of different innovative technologies, blockchain is still one of the most widely used.
Blockchain is an innovative technology that allows data transactions between several devices to go fully automated and secured without the need for middlemen services. All computers in the blockchain net are connected by a shared chain without a central server which makes the data transmission faster. It helps to omit overloads and work non-stop without breaks thus making the software workflow uninterrupted. Yet, we won’t go into further detail. If you want to know more about this technology, you can read another article from the series.
You can also watch the video below which explains in simple words how the blockchain works.
And now we’ll go to the blockchain startup cases that gained their success thanks to the solutions with innovative technologies on board.
Cases of most famous blockchain startups
Industry: Real estate
Specification: Smart contracts
Founder: Natalia Karayaneva
This is a real estate startup that helps to manage fast, safe and easy online transactions. It is supported by Silicon Valley and the National Association of Realtors. Propy is truly revolutionizing the real estate market with innovative technologies in the workflow. This startup is a global blockchain-powered marketplace that operates through a decentralized property registration system. The use of smart contracts enables more transparent and secure transactions, as well as provides clients with real estate offers that can be purchased for cryptocurrency.
Their success story began with Natalia Karayaneva, who worked in this industry for 15 years before she became CEO of Propy. Thus, she already knew all the insights of the industry. In her opinion, real estate business transactions took way too much time, which was incredibly frustrating. She also noticed that all processes in this business were unsafe which meant that each of her potential clients had a reasoned fear of fraud.
That's exactly why Propy was created. The startup writes the history of the real estate market by transferring all the work processes online, securing them and conducting transactions without intermediaries using smart-contracts. Their advisors are world-leading experts: Danial Kottke (Apple), Barry Enderwick (Netflix), Michael Arrington (TechCrunch) and this is not the end of the list.
The Blockchain used by the startup makes it impossible to hack into the network and gain access to the confidential data because its very nature. Smart contracts allow Propy to nullify potential failures and malfunctions in the system through the workflow automation. Thus, there is no need for clients to sign contracts in person..
Here how it works: you want to sell a house (for example) ➜ you invite all parties involved in the deal to the network ➜ the startup helps track all the previously finished transactions ➜ you upload the documents to the secured cloud service ➜ you make the fast and secure deal!
Propy has created an application that takes full advantage of the blockchain so that all parties involved in the sale of real estate can feel safe. Thanks to blockchain technology, startup systems remain secure and are easy to use for everyone.
Specification: Blockchain analysis
Founders: Michael Gronager, Jonathan Levin
You didn’t think that we would make a list of blockchain startups without a fintech one, did you?
Chainalysis is an American company with headquarters in New York and other cities around the world. The startup has offices in Copenhagen, London, Singapore and Washington. Chainalysis provides blockchain analysis services. Nonetheless, you can understand that based on their name only. The company specializes in developing software designed for the investigation of financial crimes.
There’s a fascinating article on their blog about one of Chanalysis' latest successful cases. They report that their blockchain analysis tools have helped investigate terrorist campaigns.
Terrorist groups received funding using illegal tools for cryptocurrency transactions, and this is exactly why Chainalysis was so useful - they managed to track illegal transactions with their spesifical blockchain analysis tools.
In 2019, agents tracking the Telegram account of terrorists’ group saw that the group was promoting a campaign to fund "bullets and rockets for the mujahideen". Reports of the funding campaign included an address to transfer the cryptocurrency.
All transactions were continuously monitored until agents noticed that the funds had been moved to another address located on BitcoinTransfer. Using the same analytical methods, agents also monitored other terrorist financing campaigns. Many of those groups worked under the disguise of "charity organizations" raising money for militant activities.
Blockchain analysis enables social media investigations of financial campaigns, as Chainalysis Reactor allows you to track who conducts the transaction, sells the goods, funds and services that were purchased for this financing. It also tracks time stamps of transfer and other important information needed for the investigation.
With the help of blockchain, financial institutions and government organizations can monitor financial transactions conducted using cryptocurrencies. The startup’s software is able to detect fraud in retail or financial transactions and law violations. This way Chainalysis can definitely enhance the users’ trast for blockchain technology.
Industry: Digital identity
Specification: Users verification security
Founder: Timothy Ruff
The startup was founded in 2013 and its main goal is to solve the digital identity crisis. This crisis stands for all the times when users need to post their personal data online and share it with different organizations - this makes every user digital identity no longer secure.
Evernym is trying to achieve full control of the digital identity of the user in order to protect the privacy of the user's identity. They see themselves at the frontline of a global movement that seeks to help customers and organizations develop business relationships built on trust.
Startup has developed the Sovrin Network to achieve this goal. It is the first public ledger for users’ identification. This enabled the creation of an infrastructure for storing account data in a secure, decentralized form. And by doing so, users were able to control their digital identity themselves by transferring information from different company databases to their own. That's what the company says:
They received the award as the best SSI (self-sovereign identity) project in 2019, three years after they presented the Sovrin Network concept to the world for the first time.
Evernym startup is challenged not only by the cybersecurity needs of every Internet user, but also by physical threats such as COVID-19. Because of the virus, contactless verification became even more important. With the transition to digital identity verification technologies, people will need software to store portable digital identities and maybe this is the future of the blockchain we've all been looking forward to.
Fast, secure technology that doesn't allow any data alterations can make it easier to transfer personal documents to any structure. No more queues or long waitings - perhaps in the future, after COVID-19, we will use a digitized identity in our everyday life thanks to blockchain.
Distributed ledger technology allows users to manage their identity throughout the Internet. The network Evernym has created a means of communication between an individual and an entity, which verifies all information in real time, and builds an understanding of each user's digital security. The use of innovative technology not only as the basis for their startup but also as a major platform for growth and evolution must be the secret of their success.
A brief overview of other blockchain startups
According to Deloitte, about 56% of entrepreneurs believe that blockchain can disrupt the industry in which they work. At the same time, 77% are inclined to think that without the integration of blockchain into their work processes they will likely lose a competitive advantage.
Blockchain is not limited to the financial transactions and people do consider it revolutionary. So let's look at examples of blockchain startups in different industries. By the way, here you can learn more about blockchain technology in general.
But there are more interesting blockchain startup cases which we’d like to show to you. We genuinely hope you’ll learn something new on this brief overview, so read on!
The main goal of this startup is to nullify all complications in the supply chain. This software can control the supply chain operation from shipment to arrival. In addition, it is adapted to the customer's company so that the client can control the process directly from devices that are convenient to them.
ShipChain aims to make the imperfect supply chain a relic of the past using Ethereum.
Using blockchain, the logistics company monitors and documents each stage in the chain, ensuring the availability, transparency and security of information. Founded in Los Angeles, the company hopes to be at the frontline of the entire U.S. supply chain market modernization thanks to blockchain.
Founded in New York, MadHive provides solutions for digital marketing. This platform can track and store data in private blockchains along with generating reports on customer activity. It allows marketing specialists to get a full picture of the market and target audience without worrying about the privacy of their data.
The main goal of this startup is to make technology more convenient for every user. They rely on the transparency that the Blockchain provides. MadHive uses cryptographic data encryption methods to ensure that all important data is verified. In addition, a startup is ready to "open the curtain" on how their workflow is progressing to gain their customers' trust.
So they give their client a possibility to grade their services. The startup makes working with advertising on the Internet more effective, fast and understandable to every user.
One of the fundamental aspects of the election is transparency. Therefore, democratic societies are adapting innovative technology to increase the efficiency and transparency of elections. This approach gives people the feeling and the confidence that their vote can really make a difference. But not every technology can be used in this area, since not every technology is as transparent as blockchain. Not every technology has the same level of security.
That's why Follow My Vote uses blockchain. Convenient, transparent and time stamped transactions allow you to track each vote and verify the legitimacy of the electoral process. In addition, Follow My Vote confident that the use of a blockchain can reduce spending on elections, freeing part of the state budget for more important needs.
Virginia's state-based blockchain startup uses open source software to reduce the cost of physical bulletins and make online voting more secure. Thanks to them, everyone who votes can be confident that their voice is safe and is making a difference.
This startup is developing a platform for digital transactions around the world. CULedger startup creates a decentralized digital identity and works on secure money transactions for credit unions. It is designed to build trust between companies and customers, as well as reduce fraud risk, operating costs and optimize business processes.
CULedger team is working on possible blockchain-powered solutions for credit unions, but they recognize the possibility of using their platform for other financial processes in the future.
And this is far from all that blockchain technology is capable of. Blockchain is changing every industry into which it is integrating. Today, most of the world's startups and companies see blockchain adoption as one of their top priorities. Still, not everyone has managed to gain such a competitive advantage. This can be due to lack of technical partnership. So, if you are eager to implement a blockchain in your startup and don’t have a technical partner yet, we can help you implement a blockchain technology into your startup, making it more competitive.
Perhaps the experience that other startups have gained in their long and productive journey will encourage you to do great things as well and your startup will be the next in this list.