When we want to earn from a certain business or a market, the first thing that needs to be done is gain an overall knowledge about the same. And so, before get to the part about earning using blockchain technology, we need to understand what the technology means.
WHAT IS BLOCKCHAIN TECHNOLOGY?
A blockchain is nothing but a system that makes it almost impossible to counterfeit the information it has stored.
The blockchain technology comprises of something known as DISTRIBUTED LEDGER TECHNOLOGY(DLT).
Now what does that mean?
In every minute that is passing away, there are numerous transactions going on in every blockchain that is available to the users. Each and every one of these running transactions are being copied and distributed across the decentralized financial accounting system spread over a network of computers connected to each other through the system of blockchain. This decentralized system of distribution is what we call DISTRIBUTED LEDGER TECHNOLOGY(DLT).
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But DLT classifies into several types and blockchain comes under the group that uses cryptographic protection, specifically known as Hash, to protect its recorded data.
The protection is designed in such a way that, if the motive is to hack one block in the chain, then every single block in the chain has to be hacked, because otherwise it would be apparent that the block has been tampered with. And that is why blockchain said to be the ultimate protection for cryptocurrencies, because its near impossible to hack every single block in the chain.
Hopefully, that would be enough to understand the concept of blockchain.
Then, we can concentrate on how to make money from the discussed market.
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HOW CAN WE EARN USING BLOCKCHAIN TECHNOLOGY?
The first thing that generally comes to our mind when we think about earning through blockchain technology is, investing our precious capital into Bitcoin. And the reaction is quite natural because Bitcoin is still holding the market like a king since its birth.
But are there no other ways of making money using the blockchain technology other than investing in crypto currencies?
Actually, there are many, even some which are more effective and less risky than investment in crypto currency.
Let’s begin with the ones that would bring home a fair amount and not humongous money.
- One thing that we need to remember about investing in blockchain is that we cannot do it directly. There has to be a mediating company in between who takes our investment and returns us our profit. So, that is one way of making money through blockchain, i.e., by investing it in companies that deals with blockchain.
- We can also invest our capital in companies whose sole purpose is development of blockchain technology and then we can earn from the success they make.
- Yet another interesting place to invest is funding the rising stars of the blockchain industry, who’s sole purpose is to either make something new or renovate the already existing ones.
- Apart from the above mentioned, another way of earning through blockchain is buying its currencies and holding them they are ineligible to return us the profits.
- And if we want sooner results, we can always opt for trading, which means buying the currencies from the market and then selling them again.
And this list keeps going on. But we have to remember that using these methods would bring us money, yes, but, active money.
While earning through blockchain we have the option of indulging into passive income.
Some of us might wonder what is passive and active money or income?
Active income means the money that we are being paid for the jobs that we do whereas passive income typically means earning without doing almost nothing.
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Let’s see how we can earn passive money using blockchain technology.
- The first method is quite well known – Mining.
- Then we can also involve our money in Staking.
- Even simple things like playing online games are also capable of providing us with a passive income.
- The social networking sites that we sometimes curse for its supposed uselessness, is not really useless. Use the sites right, create the right content and you would have effortless income coming your way.
And this list too could continue forever because every second something new is happening.
So, what we need to do is- use the resources properly and carry out the needed research and blockchain technology would definitely turn out to be a good income source.