I love the voice of their help page. Someone very opinionated (in a good way) is building this product. I particularly like this quote: Your data is a liability to us, not an asset. ❧
I started looking at blockchain from a position of extreme skepticism. Over time, mostly thanks to friends like Julien Genestoux and the amazing team over at DADA, I've come to a better understanding. I've always been interested in decentralization as a general topic, of course - the original visi...
Ben, like you I’m highly skeptical of the word blockchain when applied to any business. My background in cryptography and information theory indicates that the technical side of things is generally on the up and up, but the long term use with huge ledgers and massive transaction scale doesn’t seem to scale the way most seem to be hoping it will.
The one interesting business use case I’ve seen was on the fundraising front, but it also has a lot of the downside you mention for use in building a business. If it helps lay out a sketch of what the thing would look like from a startup perspective, I’m including the recorded talk I saw a few months ago. Still I say caveat emptor.
By looking at the eight possible revenue models you can reinvent a business.
There may be an infinite number of variations a company can use to make money, but they really all boil down into eight types:
- Unit sales: Sell a product or service to customers. GE uses this method when they sell microwaves.
- Advertising fees: Sell others the opportunities to distribute their message on your space. Google uses this method with its search product.
- Franchise fees: Sell the right for someone else to invest in, grow, and manage a version of your business. McDonald’s uses this method with its stores that are independently owned and operated as franchises.
- Utility fees: Sell goods and services on a per-use or as-consumed basis. Most electric companies use this model when they charge customers only for the electricity they use.
- Subscription fees: Charge a fixed price for access to services for a set period of time. Gold’s Gym charges a monthly or yearly subscription fee for people to access their gym.
- Transaction fees: Charge a fee for referring, enabling, or executing a transaction between parties. Visa charges a transaction fee to retailers each time a customer purchases a product in their store.
- Professional fees: Provide professional services on a time-and-materials contract. H&R Block makes money by charging customers for the time it takes to prepare their taxes.
- License fees: Sell the rights to use intellectual property. Every time a customer buys a T-shirt or a hat with the logo of their favorite sports team on it, that team makes money from license fees.
Hat tip: Ben Werdmuller