Business Model Analysis: Mycro is more than a Blockchain startup
Business Model Analysis: Mycro is more than a Blockchain startupThe Blockchain is probably one of the currently most referenced and mentioned technologies, however the least understood. That leads to many startups using it as a buzzword or trying to copy existing business models with slight changes by decentralized parts of it. Read this post if you want to understand why Mycro does not fall under the Blockchain only category but embraces a larger vision.
The ICO matrix: Theoretical background
According to the ICO matrix, a Blockchain startup can be categorized by asking two questions:
1)Does the Blockchain add value?
2) Is the use case great without a Blockchain?
How these questions have to be answered will be explained in the next paragraph. Based on the answers of those simple questions, it is possible to assume whether an ICO is a scam or it can be seen as a useful application of the Blockchain technology based on a solid business model. The matrix therefore concludes four different categories a startup can be attached to:
Blockchain & Idea Symbiose: This is usually the best case for non-infrastructure projects. You have both a value proposition that works without a Blockchain, but still an extra benefit by utilizing the technology.
Hype technology: This is a great startup idea that is implemented with the Blockchain that Is — however — not adding any value in this case. Therefore, the Blockchain is rather used as a buzzword and the startup making use of the hype.
Applying the ICO matrix to Mycro
1) Does the Blockchain add value?The question refers to the benefits that the Blockchain as a technology adds to the business model.In the case of mycro, those benefits are:Trust
- The reputation system based on reviews for performed jobs creates trust within the network. By utilizing a Blockchain technology for this system, consistency and correctness can be ensured and transparency helps avoiding fake reviews and manipulation.
- Instead of mycro being the centralized escow, Smart Contracts hold the money and manage the job execution by a pre-defined ruleset.
- The ICO approach mycro chooses allows low fees to be set at a very low level. Unlike centralized platforms, mycro finances the first operations with the money collected through the ICO and therefore does not depend on high fees to maintain the service.
Summary: The Blockchain adds an extra value, the question has to be answered with yes for the matrix analysis.2) Did the use case great without a Blockchain?This question refers to the value proposition of the startup when the Blockchain as the underyling technology would be cut out. Does it still provide an exceptional value to the customer or does the value proposition highly depend on the Blockchain?In the case of mycro, the real-world value proposition for the user is the ability of exchanging time and money with full flexibility and freedom of choice. Allowing people to earn money in realtime by doing simple jobs and allowing the other party to get their service in a good quality without waiting for a long time.As you see, this big and long term vision does not include the word Blockchain. Hence, mycro opens a new market of services and opportunities as the value proposition.
Summary: Mycros vision of developing a time and money equalizer provides exceptional value even without the Blockchain technology. The question also has to be answered with yes.
Mycro combines Blockchain and innovation
After having answered both questions with a yes, we can simply categorize Mycro in the ICO matrix. It shows that the category Mycro has to be placed into is the “Blockchain & Idea Symbiose” — meaning that it gains an extra value through the use of a Blockchain, but can be a working business model without the technology.