Originally Answered Here : Quora
Accompanying Youtube Video
Pros :
- Easy to get investment as hype around blockchain technology is at an all time high.
- Even if you fail in the business part, you will end up creating something new technologically, which might have some value.
- Since, many blockchain applications involve creating decentralised internet & disrupting big companies, your competition will be with other initial based startups. This is unlike in the field of Data Science & AI in which your competition might be with the big companies from Day1 as these have access to large datasets very easily.
- Blockchain is freakin exciting!
Cons:
- Very difficult to make something substantial as the technology is quite nascent & the tools required to make a Blockchain app are at a super nascent stage right now.
- Hiring will be super difficult (very few Blockchain developers in town!).
- Blockchain technology to a certain extent is still unproven & there are issues related to transaction speed among other issues in a completely decentralised system.
Regarding how will the startup earn a profit (part of quora question), I think it depends on a variety of factors. If you are making something in B2B space like providing a Blockchain solution for a bank, insurance company etc., you will probably be profitable from Day1.
On other hand if you are making something like a decentralised Amazon, it would be difficult to be profitable from Day1. BUT Hey, you can raise a ton of cash through an ICO & find your way to profitability with time.
Hope you found this useful.
Thanks for reading!
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://medium.com/@arnav_vohra/pros-cons-of-opening-a-blockchain-startup-8c4eb40ef0a5