How to Make Money in the Blockchain Business?
Blockchain business is getting more attention than bitcoin and that is because blockchain can be used in a multitude of areas. By being an early adopter of the technology one can make good money out of the blockchain business.
What is blockchain?
Blockchain is a shared database technology – a digital ledger of transactions, agreements, or contracts. The ledger is not stored in one place, on the contrary, it is stored on a network made up of thousands of nodes (computers) from around the world. Blockchain keeps track of every transaction, which gets recorded in “blocks”. These blocks provide proof of who owns what at any given point in time. Each node on the network must approve a transaction before it is recorded in a new block and added to all previous blocks, forming a “chain” of computer code. If one node does not approve the transaction, it does not take place. This makes it virtually impossible for anyone to interfere with the system unnoticed. Security makes the blockchain so appealing for many businesses.
Since all transactions are seen by everyone in the network, transparency is another appealing feature of blockchain. Blockchain allows for faster transactions that are not processed manually, which leads to efficiency and thus lower costs.
No wonder why banks such as Barclays, J.P. Morgan, UBS, Citi, Societe Generale and others are investing in the development of decentralized ledgers.
Where can it be used?
As it was originally designed for bitcoin, blockchain can be primarily used in the financial sector to make money transfers. The technology is used in trading platforms. For example, tØ platform is based on the blockchain.
It is used by companies in the file sharing industry. Storj is a blockchain based cloud storage where one can rent a drive for a competitive price.
The health industry can benefit as well. Pharmaceutical companies could tag drugs with identification numbers on a blockchain, to track goods through the supply chain and cut theft and counterfeiting. Block Verify has recently completed the first stage of a pilot programme to test its system on pharmaceuticals produced by a Swiss manufacturer.
Painters and interpreters can use the technology to verify art pieces and to prevent piracy.
More importantly, distributed ledgers can be used by governmental institutions. The Estonian government is using a form of blockchain technology for the system known as Keyless Signature Infrastructure (KSI). Its aim is to provide digital signature-based authentication for electronic data. It allows citizens to verify their records in governmental databases. KSI has helped launch the E-business register and e-tax, which have contributed to the reduction of queues and stress levels, and to the acceleration and automation of processes.
These examples demonstrate how blockchain technology can be used efficiently on a large scale.
Who can earn money out of a blockchain business and how?
There are currently five categories of people who are making money for working in the blockchain business:
- Software developers and architects who specialize in cryptocurrencies and decentralized ledgers.
- Blockchain experts who offer their consultancy services to businesses.
- Project/Product managers who can develop and execute a distributed ledger technology strategy and coordinate the resources.
- Fintech content creators who have a deep understanding of the industry and can shed light on the current situation and its probable evolution.
- Blockchain interns who are learning about the field are the future of tomorrow’s blockchain business.
Considering that big players in the financial market are interested in the blockchain technology, it is going to mature in the future. Once institutions reach a point where they have created proprietary decentralized ledgers they will want to connect with other organizations. This creates new business opportunities to design connecting solutions among institutions that are not using the same distributed ledger. The blockchain business will need more professionals who can facilitate its development, because it has a tremendous potential to spread to a wide range of industries.
Did we miss anything? Do you have other ideas on how to use blockchain for profit?