Blockchain technology is best known for the first killer application built on top of it, bitcoin, the worlds first peer-to-peer, global, decentralized digital currency and payments network. Blockchain is considered by many to be the most important invention since the internet with its ability to enable entirely new business models, and transform the way we live, work, entertain ourselves, and relate to one another.
Blockchain, sometimes referred to as distributed ledger technology (DLT), makes the history of any digital asset unalterable and transparent through the use of decentralization and cryptographic hashing.
Blockchain Technology Understanding
- Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
- One key difference between a typical database and a blockchain is how the data is structured. A blockchain collects information together in groups, known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain.
- In Short, Blockchain technology is a decentralized, distributed ledger that stores the record of ownership of digital assets. Any data stored on blockchain is unable to be modified, making the technology a legitimate disruptor for industries like payments, cyber security and healthcare. Discover more on what it is, how it’s used and its history.
Table Of Content
- What is Blockchain Technology? Complete Explanation with Examples
- How Does Blockchain Technology Work?
- 6 Unusual Ways to Make Money With Blockchain Technology
- Why Blockchain Technology is Important?
How Does Blockchain Technology Work?
Blockchain is a combination of three leading technologies:
- Cryptographic keys
- A peer-to-peer network containing a shared ledger
- A means of computing, to store the transactions and records of the network
Cryptography keys consist of two keys: Private key and Public key. These keys help in performing successful transactions between two parties. Each individual has these two keys, which they use to produce a secure digital identity reference. This secured identity is the most important aspect of Blockchain technology. In the world of cryptocurrency, this identity is referred to as ‘digital signature’ and is used for authorizing and controlling transactions.
The digital signature is merged with the peer-to-peer network; a large number of individuals who act as authorities use the digital signature in order to reach a consensus on transactions, among other issues. When they authorize a deal, it is certified by a mathematical verification, which results in a successful secured transaction between the two network-connected parties. So to sum it up, Blockchain users employ cryptography keys to perform different types of digital interactions over the peer-to-peer network.
6 Unusual Ways to Make Money With Blockchain
Here are some ways you can begin capitalizing on blockchain technology today, beyond just owning some bitcoin:
- Mining
- Earn While Playing Games
- Blockchain Development
- Sell Your Data
- Accepting Digital Currencies as Payment for Goods or Services
- Trading
- 1. Mining
Cryptocurrencies can be mined by using computer processing power to calculate complex mathematical equations. While professional miners use specially designed CPUs, many companies have developed handy blockchain mining applications for mobile devices and PC systems.
ASIC mining & GPU mining are currently the two main choices for earning cryptocurrency in the blockchain space. With a little startup capital and affordable electricity (it takes a lot of power), anyone can earn digital assets directly on their mobile or PC device. Any cryptocurrency obtained can be used to pay for goods and services across various online platforms, or even transferred to your regular bank account in the form of fiat currency.
However, there are some drawbacks to consider. ASIC & GPU mining processes will use up a considerable amount of your device's processing power and might make your operating system slower as a result. Moreover, exploring all the available mining potentials will require your mining devices to run continuously so that you can make more profit.
Another option is to use blockchain apps designed to leverage cloud based computing power. With cloud mining, investors can earn and accumulate digital assets without any hardware or prior mining experience.
- 2. Earn While Playing Games
For the gamers out there, it might be time to start paying attention to the rapidly evolving play to earn sector which, as its name suggests, includes a variety of games that allow you to earn while playing.
Depending on your skill and luck, as well as the amount of time, investment and effort you are willing to put into the game, some of these games can be a lucrative revenue stream for players. Generally, early adopters tend to benefit most, but many continue to provide an attractive source of income even to newer, less established players.
Most of the time, these rewards will come in the form of project tokens and in-game non-fungible assets, which can then be traded and sold for a yield.
In the last year, the play to earn space has exploded with popularity, and there are now dozens of games that provide play to earn functionality. Though Axie Infinity is without a doubt the best-known title, it has a relatively high barrier to entry (due to the costs incurred by purchasing the NFTs needed to play), making it a challenge to get started.
A wide variety of other play to earn games feature a much lower barrier to entry, such as Plant vs Undead, My Neighbor Alice, Monsta Infinite and Metalands but still vary considerably in the potential yield you can earn. We’ve compiled a list of potentially promising options, but also recommend staying on top of newer releases if you want to maximize your profits.
- 3. Blockchain Development
Even though Blockchain technology is still in its infancy, there is currently a global demand for blockchain engineers and developers. This might be the perfect opportunity for people with the relevant skills to make profound career changes.
What’s more, you don’t need to quit your job or move to a different city to acquire a blockchain qualification. Online blockchain courses allow you to study anywhere at your own pace and develop the skills and certifications to join the growing number of blockchain experts worldwide.
Blockchain is 2022’s most in-demand hard skill, rivaling artificial intelligence, machine learning and IoT verticals. At present, the national average salary for a blockchain developer is 51.9 percent more than the average national salary in the U.S. These figures could be significantly higher if you know exactly how to build the technology and which programs to use. Enterprising individuals can fast track their pathway to a blockchain career by taking advantage of reputable online blockchain courses.
- 4. Sell Your Data
When using or browsing the internet, one thing is almost certain your data is being harvested.
Whether it’s your browsing habits, your shopping history, your favorite videos or something else, websites are set up to collect, sort and sell your data wherever possible. This is one of the primary revenue streams for many websites, despite the fact that this practice rarely provides any value for the end user.
Thanks to the advent of blockchain technology and a clever hardware solution, a new platform known as Cirus is flopping this model on its head allowing you to selectively monetize the data you generate while using the internet.
The platform comes in three main parts, a plugin, a marketplace and an optional full featured router. These allow you to configure exactly which types of data you are comfortable with being collected and aggregated into datasets that will be sold on the Cirus marketplace. When these data sets are purchased, you receive payment in the form of CIRUS tokens.
Cirus’ hardware-based router is an entirely optional component that can be purchased separately or unlocked as a reward by using the platform. It allows you to maximize the amount of data you can collect and sell, significantly boosting the income the platform generates for you.
If you spend a lot of time online, Cirus could be an attractive way to generate a side income with little to no additional work.
- 5. Accepting Digital Currencies as Payment for Goods or Services
Getting paid in cryptocurrencies is a viable alternative to accepting fiat currency or other digital payments. Businesses and individuals can offer this payment option to their customer base in addition to receiving credit or debit transactions, thus providing a choice that alleviates personal security concerns. Not only will this method help you accrue cryptocurrency, but it can also help you reach a potential customer base that may not have considered your business before.
However, businesses that wish to accept cryptocurrencies must do so through payment gateways. These gateways and cryptocurrency merchant solutions also facilitate automatic calculations and convert the fiat value of goods or services into the cryptocurrency equivalent.
Developing a digital payment solution that accepts various cryptocurrencies and then offering businesses access to it is another way to make money with blockchain
- 6. Trading
As we mentioned earlier, this can be a risky endeavor for newcomers to the blockchain industry, but trading Bitcoins (and other cryptocurrencies) is incredibly lucrative. For several years now, crypto enthusiasts and bitcoiners have advocated the benefits of acquiring these digital assets.
These days, because worldwide governments shut down economies in response to the Covid-19 outbreak, almost everyone is on the lookout for side gigs and alternative earning opportunities on the Internet.
- Enter Bitcoin trading.
Perhaps you’re good at chart analysis and asset trading; you’ll be pleased to know that there’s an opportunity for you to make considerable profits by regularly swapping digital assets online.
However, learning how to trade Bitcoins isn’t easy. If you’re looking to make money with blockchain through crypto trading, you’ll first have to make a few digital asset purchases and then make the correct market moves by knowing exactly when to trade. To do this well, you must hone your trading skills through regular practice by studying technical charts, analyzing trends, keeping up with global news and other factors that affect cryptocurrency prices.
Anyone can make a career out of trading popular digital assets on crypto markets. Unlike the stock market, trading goes on non-stop, so you can grow your assets and profits online with each passing day.
Why Is Blockchain Important?
Blockchain is an especially promising and revolutionary technology because it helps reduce security risks, stamp out fraud and bring transparency in a scalable way.
Originally popularized in the 2010s by its association with cryptocurrency and NFTs, blockchain technology has since evolved to become a management solution for all types of global industries. Today, you can find blockchain technology providing transparency for the food supply chain, securing healthcare data, innovating gaming and overall changing how we handle data and ownership on a large scale.