The 9 Questions Blockchain Startups Get Asked Often

Blockchain: The Future of Connectivity

Joe Hunt

1. What the Heck is Blockchain?

While this question might not get asked by investors or those in-the-know, it’s a question we get asked ALL THE TIME by normal consumers. A blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. It is also quickly becoming the catch-all phrase for anything dealing with cryptocurrency. 

2. Why is Blockchain Necessary?

Blockchain is a revolutionary new technology that will change the way all economic relationships occur. More strictly put, it is a new digital mechanism for authenticating and authorizing transactions, precluding the need for a centralized administrator.  If you don’t need to deal with a broker, why would you?

3. Why Invest in Blockchain When I Can Invest in Cryptocurrency?

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GREAT QUESTION. The two are technically not the same thing. Blockchain is the protocol which crypto runs on. It would be like asking why invest in chickens when you can invest in eggs. You can invest in both simultaneously or separately!

4. Are Any of Your Founders Famous?

So many people ask this question that we want to make this next point clear: celebrity endorsements do not guarantee success. We are all familiar with celebrity-backed startups, however dozens of brand new companies with great and innovative ideas are founded every day, and not all of them will be tweeted about by Kim K. While fame might indicate a level of success, it is not the final indicator of a profitable company. Do I need to remind everyone of Juicero?

5. How Much Money Have You Raised to Date?

We LOVE this question. You do not want to get in bed with a company that cannot raise any money for their investors. If a blockchain company avoids answering this question, RUN!

6. Aren’t You Worried About Hackers?

Yes, we are all worried about hackers. However, when it comes to digital assets, blockchain is one of the most secure technologies out there. A blockchain is a public, decentralized ledger of cryptocurrency transactions. In order for a transaction to be verified, all nodes must confirm the same digital transaction, or else it is deemed illegitimate. Good luck, hackers!

7. Why Would I Invest in Blockchain When the Market Just Crashed?

If you’re uncomfortable or unfamiliar with market imbalance, then maybe this isn’t the right industry for you. But given the recent market fluctuations, now is a GREAT time to get involved in the blockchain world. "Buy low, sell high" still applies to the crypto world.  Don't let opportunities slip away because you are focused on past market performance. 

8. How is Your Blockchain Company Going to Change the World?

Some people think that blockchain companies are the next Superman. As the world grows closer through technology, human empathy is seeking new outlets. We are seeing individuals change the lives of the many through human ingenuity, technological innovation, and passionate engagement. Blockchain allows for individuals and growing companies to contribute to the global community while filling a need and enhancing shareholder value. We believe that if companies are given the opportunity to make money and do good, we can create a new type of economic model for success. 

9. What is the Future of Blockchain?

This is the question that excites us the most, because the possibilities are limitless. Blockchain technology offers to free us all from the current rigid, inefficient global financial system. While blockchain itself is not the technology that will stop war or climate change, it is a technology whose focus is on trust, creating more efficient systems, and reducing waste. The future of blockchain is unwritten, but its current adoption by major financial institutions, agricultural companies, and yes even democratic voting commissions, ensure that this technology isn’t going anywhere.