Article originally published on Let Me Waste Your Time.
Blockchain is the revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used instead of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as Blockchain technology .
With the increasing need for modernization in our everyday lives, people need to accepting new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technology like augmented IoT that have gained tread in the past decade and now there’s a new addition to the pack i.e. Blockchain technology.
Actually, the 21st century is all about technology.
There’s a misconception that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of the blockchain technology. The blockchain is just a public ledger of transactions on the bitcoin network.
Before we tell you how to make money with blockchain technology, there are several things you have to know.
Though blockchain technology has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.
At first, let’s keep a check on the similarities that both public and private blockchain have:
- Both Public and Private blockchain have peer-to-peer decentralized networks.
- All the participants of the network maintain the copy of the shared ledger with them.
- The network maintains copies of the ledger and synchronizes the latest update with the help of consensus.
- The rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks.
And let’s see the differences between them.
Public Blockchain – It is a permissionless ledger and can be accessed by any and everyone. Any one who have the access to the internet is eligible to download and access it, can check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain.
Public blockchains allow the communities all over the world to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. The rules decided and applied initially have very little scope of modification in the later stages.
Private Blockchain – Opposite to the public blockchain, private blockchains are shared only among the trusted participants. The overall control of the network is in the hands of the owners. The rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization etc.
Private blockchains can run alone or can be integrated with other blockchains too. These are usually used by enterprises and organizations. So we can say, the level of trust required amongst the participants is higher in private blockchains.
Ways to make money with Blockchain technology
Though Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors. The variety of blockchain technology-based businesses with paths to profitability is striking. Here are four that illustrate width of innovation the blockchain marketplace is bringing to potentially profitable business ideas. While Millennials are certainly moving towards “alternative career paths” more often than their Generation X or Baby Boomer counterparts, there are countless ways for absolutely anyone to capitalize on the new wave of oncoming technology. Here, you’ll find an awesome starting point to making money and freelancing with blockchain technology.
Let’s see how Blockchain technology can be useful in actual implementation.
Mining cryptocurrency is considered the granddaddy of making bank on blockchain technology. Here’s a quick rundown of how the blockchain technology works in this example. Multiple transactions make up a block. Miners verify blocks through a process. They apply a mathematical formula to each block, turning it into something make money blockchain called a “hash.” Essentially, a hash is an alphanumeric sequence. The hash is then stored at the end of the blockchain. When each block’s hash is created, it uses the previous block’s hash. More or less, this is the digital version of a wax seal.
So, once a block has been “sealed off,” a flurry of activity happens. The first miner to produce the hash receives a reward. As more of the cryptocurrency is mined, the rewards is halved. The process itself is pretty straightforward. What’s not straightforward, though, is actually making it happen.
Since so many people have computers strong enough to mine, it’s far more difficult to make it a lucrative endeavor. Instead, mining pools have popped up. Mining pools are just groups of people working together to mine. If the pool wins, everyone in the pool is distributed a portion of that winning. That’s not to say, though, that mining smaller altcoins on your own isn’t a possibility.
This is definitely a lucrative way to make money with blockchain technology.
Cryptocurrencies reside on exchanges, just like fiat money. However, they have much more in common with stocks. Because cryptocurrency markets are so volatile, they can feel like more of a risk than they’re worth. But, to make money with them you just need to be aware of trends and do your research. Know the specific risks associated with trading. There are literally thousands of cryptocurrencies on the market.
On the flip side, if you choose to hold on to certain cryptocurrencies, you are considered a hodler.
Do your research. Read up on the market. Trading crypto is crazy fun, regardless of if you make money.
The models are different but one things is consistent – the freelance marketplace is growing rapidly. For entrepreneurs looking to build startups on the blockchain technology, companies looking to find reliable, qualified freelancers looking for a fair and transparent platform with quick payments and low fees, the boom of cryptocurrencies and the blockchain technology is the new holy grail in freelance work exchange.
There are other ways you can make money with blockchain technology.
- Build your own blockchain
- Build something useful on top of someone else’s blockchain and sell it as a service
- Help someone who is building a blockchain or blockchain application to find customer or sell their blockchain technology
- Invest in a business doing the above
- Learn more about blockchain technology and teach / run courses or webinars about blockchain
- Look for problems or businesses that have an urgent or important problem that could use a blockchain type solution and build a business case
- Get involved in an event – like a hackathon, conferences or workshop – in related industries like fintech, cryptocurrency etc
- Volunteer or get experience working for various blockchain companies
- Download, install or register for a blockchain app and play around with it, see if there’s anything you could do with it
- Go online and explore blockchain forums, discussion groups or communities and see what opportunities may be available or advertised and speak with those groups / companies
Choose how big a wave you want to ride. If you are still learning, don’t go for that massive wave, it will kill you. You can have fun and make money from the smaller waves. Don’t let media hype distract you from this. Media make money talking about the mega stars – such as Bezos and Zuckerberg – who are riding the mega waves. The story of somebody making a life-changing amount of money in a tiny niche market won’t sell page views, but yet there are millions of these stories and one of them can be you.
Bottom line: The blockchain technology seems to be growing with each passing day. Although, many claim this to be a bubble that will soon burst. However, the pace of improvement and increasing application in different fields shows that it is here to stay. There is no domain which in untouched with the impact of Blockchain technology. Companies in healthcare, medical, transportation, retail, etc. are eyeing towards this technology as a probable solution to the issue of safety. This has made more and more companies invest money in Blockchain companies. Hence, we have them earning more and more money.
Many companies are also investing in blockchain technology, and thus, it is garnering the attention of many. Blockchain came into existence in 2009, and since then it has never looked back. It is here to stay.
Featured image: Pexels