Once a gateway for aspiring entrepreneurs, even blockchain enthusiasts with successful startups are benefitting from a new wave of hackathons and incubator projects.  Bitcoin and blockchain entrepreneurs have had trouble accessing executives at these institutions and so rely on hackathons to network with potential connections. For startups, hackathons can be helpful in connecting them to possible legacy institution clients. But there’s also benefit for corporates too.

“At the end of the day, typically the channel to capture the end consumer is to go through large financial players.”

Legacy institutions that work with incubators and host hackathons find themselves in a position to connect with new technology that could substantially enhance their business. And now so, more than ever, corporates of all kinds are taking advantage. For instance, Capital One held a hackathon in San Francisco with Chain in July 2015, for which the bank flew in 70 of their employees to work on blockchain-based solutions with blockchain experts.

What are actually Blockchain and Bitcoins?

Let me explain it in one single sentence:

blockchain
ˈblɒktʃeɪn/
  1. a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
bitcoin
ˈbɪtkɔɪn/
  1. a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Network Effects

There are already a number of successful bitcoin and blockchain startups that still participate in hackathons or have joined accelerators. Bitfury for example has raised $90m for its bitcoin mining service and now earn so much that they have set up their own accelerator, the Blockchain Trust Accelerator. Before, it was in an accelerator backed by Ernst & Young and then they partnered with the ‘Big Four’ allowing them to take its solution to enterprice firms.
Likewise, Darren Tseng, co-founder and vice president at Adjoint, a distributed ledger and smart contracts platform for financial services, launched his company in June but continues to participate in hackathons. “For general hackathons, I do them for fun and networking,” Tseng said.

Talent Garden

Fresh ideas and new hires do sometimes arise from hackathons. “Hackathons are one of the best breeding grounds for new ideas that I have ever come across,” said Jeremy Gardner, founder of the Blockchain Education Network and the entrepreneur in residence at Blockchain Capital, a venture fund in San Francisco.

Concept showcase

Hackathons are the best way to weed out the real use cases from the pie-in-the-sky theories. Hackathons, incubators and accelerators “show very quickly if a use case is something that makes sense for large corporations and they paint a pathway to matriculate the technology into the legacy player’s tech team,” said Plug and Play’s Robinson.

Blockchain and Bitcoin Hackathons

Here is a selection of a few of the Bitcoin and Blockchain hackathons waiting for you to participate in:

One last question: Should I invest in Bitcoins?

You might have read about Bitcoins on some major news site. After dropping from $1,000 to around $300 in end of 2014, the price grew by over 200% from beginning of 2015 to end of 2016 to surpasse the value of gold by March 2017 at over $1,250. Nobody knows how the price will develope in future but the community behind Bitcoin is growing and growing. The probably most important day in Bitcoin history will be March 13th when the US Securities and Exchange Commission decides on an exchange-traded fund (ETF) tied to the digital currency. It will send the price to the moon to a new all-time high or down to earth. If you like it risky and can afford to lose the money then you should invest in Bitcoin and hope for a positive decision by the US SEC. One thing is sure: The technology behind Bitcoins is here to stay and the rollercoaster ride is not over yet…

bitcoin-roller-coaster

Source: http://www.coindesk.com/

 

One thought on “Why the Blockchain/Bitcoin Hackathon Economy is Booming

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