Cryptocurrency has taken the world by storm whether you understand it or not. While it is has become very beneficial for modern era businesses, the majority of people actually don’t know how it operates or the different aspects of it. Blockchain incubators are a very effective application to help get cryptocurrency start-ups growing.
You will find that a lot of start-ups choose to use this particular application during their early life cycle due to how effective it can be. To understand how this application works, really you need to understand the basics of this entire field. Below we are going to explore the fundamentals of blockchain incubators and how they can help your business.
Understanding the basics
Before you start with incubators ideally you should know what a blockchain itself is. This technology is essentially a giant digital ledger that is able to record multiple digital transactions. A good analogy is to think of it as a spreadsheet that has been copied thousands of times and is kept online. All these spreadsheets records are hosted on a network where any device that is connected to the network is able to view these records. This means that a global platform of users are able to access and make new records for this particular ledger.
The devices that access the network use a specific program that allows them to make new records onto the ledger. Due to the security in place, known as cryptography, people are unable to falsify, delete or edit previously entered records. This ultimately makes the system the perfect transparent ledger for a business without fear of cyber-attacks.
The technology was originally created by Satoshi Nakamoto in 2008 as the public ledger for Bitcoin. Since then it has been adapted to record transactions of all things that may be seen as valuable. The name arises from how the entries are stored and recorded. Blocks are transactions that have been grouped together within the network. The individual entry is entered into a chain which when combined grants us the now very commonly known name.
Understanding blockchain incubators
Blockchain incubators are essentially are a long term aspect that fosters the growth of your project for the majority of its lifecycle. Many people confuse accelerators and blockchain incubators together but they are similar in that they foster the growth of your project. The main difference is that accelerators only foster growth for a rapid period during the early stages of your project.
The goal to help foster growth for a cryptocurrency start-up is to raise awareness and get the public interested and excited about your project. Ultimately you will gather interest from entrepreneurs or companies to invest in your start-up. While single entity investors do exist, they are quite hard to come by nowadays as most investor programs are run by either the government or large venture capital firms. Due to high amounts of money being involved, these programs are very exclusive and trustworthy as there is potentially a lot on the line.
The exclusivity of these programs can make them hard to get into if you don’t have a well-developed network. Private programs are very exclusive and involve some very big companies and money, however that doesn’t mean you can’t find a blockchain incubator that matches your project. Generally speaking when you do enter into these programs the business that invests into your project will set out a business plan for what they want to see and how you can achieve it together.
To summarize for people who are looking for the TLDR of the article, blockchain incubators are a program that gets companies or individuals to invest into your project to help promote its awareness and growth.