blockhive, the company behind Initial Loan Procurement (a new blockchain-based fundraising method) describes itself as a project incubator, but what does that really mean?
blockhive as an incubator
It is widely agreed that blockchain technologies have the potential to revolutionize most industries, but as these technologies are still relatively new, most companies lack the knowledge to implement them—at least without assistance. This is where blockhive and its ecosystem approach comes in.
blockhive’s main role within the ecosystem is to provide support and technical expertise to its partners. The company has years of experience in the industry, having already helped over 50 companies develop blockchain-based solutions. Their goal is to use utilize blockchain technology to improve the way their partners’ businesses operate so that blockhive and its partners can thrive.
“Incubation” is a word we would usually link to the care of premature babies or the cultivation of bacteria in a lab. If we think about how both examples are reliant on creating the best conditions for strong growth, then we can apply this idea to blockhive’s strategy easily enough. Businesses that aren’t equipped to meet the needs of evolving technology are undoubtedly going to struggle in the world – in this way, they’re vulnerable just like an infant. An inability to utilize the latest technologies means that the best conditions for strong growth are not there. This is a massive disadvantage and can doom good projects before they’ve had a chance to get started.
Some companies may be able to research their own blockchain solutions to meet the demands of the modern world, but this is not the case for all projects. In both cases, it would save time and money to work alongside a partner who is already equipped with the knowledge needed. blockhive provides this knowledge for new and established companies, and in doing so provide the conditions needed to increase the likelihood of success.
It isn’t just blockhive’s ability to help companies utilize new technology that allows the incubation of projects, it’s also the focus on encouraging teamwork. blockhive doesn’t charge a fee for its services. Instead, it prospers by entering into partnerships with members of the blockhive ecosystem so that all can share the revenue generated. Blockhive’s income is reliant on the success of its ‘incubatees’, so it is always motivated to provide the best possible service.
This approach distributes risk, as blockhive is not reliant on the success of a single project. It also creates an incentive for all members of the ecosystem to work together to achieve mutually beneficial outcomes. Like bees working in a hive, blockhive and its partners have a natural incentive to work together as if they were a single unit. blockhive incubates projects through the application of its own blockchain expertise and by providing a diverse network of trustworthy partners that are incentivized and well positioned to support each other.
The development of ILP is a great example of how this approach works in practice. By pooling their knowledge and working together blockhive (with knowledge of blockchain technology) and Agrello (with its legal expertise) were able to develop legally-binding self-aware agreements on the blockchain. This leads to an entirely new method of funding with the potential to revolutionize lending, and blockhive and Agrello are already looking towards bringing ILP services to clients outside the ecosystem.