What is a business model?
A business model is a plan which outlines how you will earn money from a new business or technology.
Previously it was for a bricks and mortar establishment but in the past couple of decades the internet, cloud computing and now blockchain has moved things in new and more interesting directions to which business planning will need to catch up and recognize.
Previously it was for a bricks and mortar establishment but in the past couple of decades the internet, cloud computing and now blockchain has moved things in new and more interesting directions to which business planning will need to catch up and recognise.
To analyze new business models and create a business plan for these new blockchain powered technologies we can use the blockchain business model strategyzer grid.
How will blockchain impact your company’s business model? How will you be able to leverage this new technology to create value for your organisation, for your customers and your supply chain partners?
Well, the answer is that blockchain will fundamentally change your existing business model which is more than likely centralized. You may have to create new and innovative decentralized business models.
Taking this strategyser grid I will try to analyse an existing business and show how it can be defined for a business plan.
For this example I will be analysing the Leofinance group and it’s related apps.
Breaking down the business.
Block Grid.
- Value Proposition.
o Leofinance is a crypto and technology blogging platform that aims to bring information to the general public using peer to peer learning. It has tokenised blogging with reward to both the creators and consumers for utilizing the site while offering a host of complimentary apps for leasing voting power, analytics, defi, token launches and other token related business practises.
o A direct competitor to existing sites like medium and coindesk it is a decentralised alternative, offering immutable web3 accounts based on the hive blockchain. While to website is a centralised entity your account is not and your content cannot be deleted or hidden on the actual blockchain or your balances affected by the business entity.
- Customer Segments.
o Crypto enthusiasts.
o Freelance Writers.
o Gamers.
o Blockchain and technological companies.
o Investors.
Technology grid.
- Technology, Data and skills configuration.
o By signing up to this site you are given an immutable web3 account based on the hive blockchain. This account offers you access to any apps built on the hive blockchain as well as three second, free transactions across the world. Using this account will allow you to earn $LEO cryptocurrency from the daily reward pool based on peer to peer distribution.
o The community decide on how the rewards are distributed using DPOS and it is possible to earn from just commenting and interacting with the sites content as well as using their defi platforms to put you tokens to work.
o By using Hive blockchain as its base. The leofinance suite of apps are able to have cross chain applications while giving users decentralized and immutable accounts for their site. This gives them access to a multi token wallet as well as access to the whole hive eco-system.
Supply chain grid.
- Key partners.
o CertiK security audits.
o Hive Blockchain
o Ethereum.
o Binance smart chain.
- Value chain configuration.
o Decentralised with 3 second free transfers. Immutable content. Immutable accounts.
o Earn from a range of tokens across the Leo and Hive networks.
- PESTEL Risks.
o Uncertainty around future regulations.
o Issues with GDPR compliance.
o Reliance on other third party sites for some financial aspects of the business.
Financial Grid.
- Revenue.
o Advertisement revenue.
o Fees from DEFI aspect of the apps.
o Direct investment.
- Costs.
o Hosting of multiple sites.
o Large initial development costs as it is all new technology.
o Media, marketing and extended staff roster.
Leofinance
It's easy to see even from this simple analysis that there is a plan and a use case for Leo and it's related apps.
as soon as I started filling out the grid it was easy to slot in what is being built and to see how it all fits together.
If you did the same with a lot of crypto based projects then i'm sure that a lot of them would not make much sense as an investment or as a project to build with.
This is why I love being a part of Leo and Hive as we can see the future possibilities and what we are building towards. A viable web3 product that allows for regular users to be a part of the success.
Posted Using LeoFinance Beta
