How to make money with Blockchain? Read to know more
Blockchain technology is relatively new and yet has adopters who believe that this technology is the solution to most problems across various industries. As more and more people are exploring the possibilities, let’s try and answer the primary question. ‘ How to make money with Blockchain? ‘
What is a Blockchain?
The very term Blockchain denotes the technology its named after, Block and Chain. A Block is an immutable (Non-destructible) record of a transaction that is cryptographically connected to other Blocks by a link or a chain. Each of these Blocks has the details of the previous record and the next record cryptographically encoded in them. These are collectively known as Blockchain.
So why is Blockchain dubbed as the “Future”?
Due to the rampant disregard for accountability across various industries, there is always a sense of trustlessness and opacity in all the places that require record keeping for different purposes. Be it, the pharmaceutical industry where counterfeit drugs keep showing up, the money lending industry where lending fraud occurs. Blockchain aims to put an end to that. Due to its immutable nature, where none of the records can be destroyed once created. Blockchain also acts a great facilitator for cross-border payments solutions, where it can benefit the sender and the receiver by cutting down significantly on the exchange fees, convenience fee, and conversion charges.
How to make money with Blockchain?
Blockchain offers a lot of possibilities and the first and foremost reason is that, as more people are being made aware of the postulates (such as accountability) of the blockchain technology, they’d prefer to choose businesses that run on the technology than the ones that don’t as it offers transparency and protects consumer interests. If you’re still puzzled and don’t know where to start, there are already some very popular ready-made scripts that can help you start your blockchain based venture.
Here are a few ways you can use these ready-made blockchain products to make money quick (let’s be realistic, It’s never easy)
Blockchain-based Crowdfunding Script ( Check Here)
Our first idea on the list of ‘ How to make money with blockchain ‘ is the Blockchain Crowdfunding. The concept of crowdfunding received a lot of positive reception since it came into existence. Having people who can understand your idea and fund them helped many ideas to turn into profitable businesses. Blockchain-based crowdfunding allows anyone without geographical restrictions to know more about your idea and fund them easily. Using this Blockchain based crowdfunding script, you can make money when people purchase tokens to spend on your platform and when the creators choose to withdraw the funds. You’ll, however, need to onboard more creators with unique ideas that can attract people to fund them quickly.
Recommended Reading: Bitcoin business opportunities you shouldn’t miss out!
Blockchain powered Cross-Border Payments (Check Here)
Cross-Border payments app allows people from different countries to send and receive money with each other. In a normal payment transfer app, you’ll have various layers of commissions and fees added to transactions while sending a large amount of money, the transaction fee and exchange fee itself would be a sizeable sum. Blockchain powered cross-border payments app, cuts down the heavy fees attached to this and charges only a small fee compared to that. Meaning, you’ll make money whenever someone transfers money to someone and when the end user withdraws.
Initial Coin Offering (ICO) Event (Check Here)
Initial Coin Offerings are a way to raise funds for your startup/idea. Though it may sound similar to a crowdfunding, it’s not. Because in an ICO, Coins or Tokens are being sold at a price, whereas in Crowdfunding, the creators do not sell any promissory tokens that hold a fluctuating value to the people who have invested. If you have a startup that is looking to raise funds or do not want to approach investors, this is a great option. To host/sell tokens, you’d need an ICO Dashboard to display information, accept payments, and send tokens to the people who have purchased it. Having a solid Dashboard to perform these tasks makes the experience seamless for everyone.
Security Tokens Offering (Check Here)
Security Tokens Offerings are the new ICOs but only better. Security Tokens offerings make more sense in countries that disallows ICOs to take place. Security Tokens Offering complies with the regulatory laws laid down by the U.S Securities and Exchange Commission (SEC). Security Tokens are tied down to real-world assets that have value, which earlier wasn’t present in the case of ICOs. This aspect of the Security Tokens makes it legal for the purchase without any legal hurdle. Again, like STOs there are ready-made STO dashboard scripts that allow users to sell these security tokens in a secure manner without much hassle and they can secure funding smoothly.
Cryptocurrency Exchanges (Check Here)
Blockchain powered Cryptocurrency Exchanges help in trading, sending and receiving of cryptocurrencies on the platform. As more and more forms are cryptocurrencies are popping up, having an exchange that allows trading popular coins and some newer coins that are promising, have potential to grow in value can prove to be a unique selling point (USP) for newer exchanges. Starting your own blockchain powered cryptocurrency exchange can get you started in the world of blockchain and cryptocurrencies. This is the fifth suggestion on our list of ” How to make money with Blockchain? ”
Cloud Mining (Check Here)
Mining of cryptocurrencies (the process of cryptographically decoding and verifying a transaction) has been practice since 2008, where people interested (Miners) would use their old unused spare computers to run a program that would mine the cryptocurrencies. As the years went by the minimum hardware requirement to run a miner became extremely complex and this, in turn, would jack up the electricity needed to run these machines. This wasn’t really a feasible option. Enter Cloud Mining, the whole mining process takes in the cloud server, which you can hire from hosting specialized companies for a fraction of the cost. You can even tie up with hosting companies that allow mining on their servers and offer customized Mining as a Service to others who would be willing to pay for it. You can start Cloud mining as a service business by deploying a ready-made cloud mining script, that will handle managing payments and customers who sign up for your service. This is our final idea on the list of ” How to make money with Blockchain ”
What is a Cryptocurrency?
A cryptocurrency is a digital reward token that is generated when the block successfully verifies are transaction and adds it to the ledger. These tokens/ cryptocurrencies can be used for transactions on platforms that accept them.
While making blockchain powered cross-border payments, won’t countries object to the transactions if not done through banks?
Yes, Banks would oppose, but at present, there’s no public outcry against it from them. So here’s how Blockchain powered cross-border payments work on BitFinex. The payments are accepted in one country (assuming USD as your native currency) and is sent to the administrator’s account, then based on the current price, the Stellar (XLM) tokens are converted and sent to your wallet from the administrator’s Master XLM wallet. Once you have the XLM equivalent to the value of USD deposited into the wallet, you can send the amount to the recepient. Who then would withdraw from their wallet to the bank account in their local currency.
What is a smart contract?
A smart contract is a programmatically coded contract that gets executed by itself when the conditions mentioned in it are met. For example, a smart contract written for an eCommerce scenario executes payment once the product is delivered. There are a variety of applications for it.
These are some of the methods you can make money. Hopefully, now, you have the answer for “How to make money with Blockchain?”. Do let us know if you know any other ways.