Talk about the most speculated, discussed and also most revolutionary technologies of the 21st century and blockchain is sure to be on top of the list. Although the blockchain platform is almost simultaneously used with cryptocurrency, these two are not the same thing. Cryptocurrency is the most significant application developed on blockchain. But a blockchain infrastructure has proven to be beneficial for many other purposes as well. If we study the market reports, the blockchain tech market is poised to grow at 85.9% CAGR by 2030.
Added to cryptocurrency, blockchain platform can be used by a business for various purposes, such optimum safe-keeping of records, transparency in supply-chain, and so on. Given the rising demand for blockchain tech, a number of tech companies are offering blockchain services in the tech sector today. So, how do these blockchain companies earn money? Well, there are various ways for a blockchain firm to generate money.
If you are aspiring for a career in cutting-edge tech, then sign up for a course in blockchain technology. Given that blockchain is an emerging tech, the competition is less while the demand for blockchain-trained professionals is only rising. A professional training in blockchain will enable you to land up with a respectable and in-demand job at these blockchain platforms.
Different ways by which blockchain firms earn money
Developing blockchain software
Blockchain tech holds the potential to revolutionize a wide range of areas in a business. For example, thanks to the immutable nature of blockchain, businesses can store their confidential data on blockchain without the fear of data manipulation risks. Thus, blockchain can be handy for data storage with utmost safety. Again, blockchain tech incorporated into a supply chain sector can help to assure transparency throughout the chain. It would eventually help to locate any unwanted discrepancy in the chain so that corrective actions could be taken before it’s too late. Then, some organizations, say fiscal ones, are taking to blockchain solutions to facilitate faster cross-border transactions.
A bunch of leading tech companies are building custom blockchain solutions for several businesses to help them offer a state-of-the-art service and operation. These blockchain developing companies earn money as development costs from the businesses they sell the blockchain solution to.
Apart from development services, some blockchain development companies also offer blockchain software services, like infrastructure and API. In other words, these blockchain portals support businesses with several blockchain software services, like data stores, cloud infrastructure, and so on. These services are required by several businesses, crypto developers, as well as crypto miners. This is another way for blockchain platforms to make good money through the help of blockchain tech.
Some tech companies allow businesses to utilize their blockchain infrastructure against a subscription fee. These are enterprise blockchain solutions that are especially meant for leading institutional investors.
Now, if the institutions use these enterprise blockchain for their business services, they would have to pay the subscription fees to facilitate transactions. Blockchain companies earn a handy revenue through these transaction fees.
Another way for blockchain development companies to earn money is through contract agreements.
When a business asks for a blockchain service and if the blockchain development company agrees to it, they enter into a contract agreement. As per the agreement, the blockchain platform states to provide various blockchain services or blockchain applications. The blockchain platforms might also agree to extend hosting services. And, the blockchain companies make money through the assurance of delivery of the services as stated on the contract agreement.
As mentioned above, cryptocurrencies are the most significant application today on the blockchain platform. Thus, blockchain platforms generally have their own native token or coin that helps them to make good money.
However, just development of your flagship token or crypto won’t be enough to make good money. You will need to market it to the masses to pull potential customers to the crypto. One of the ways is by offering special incentives to users for using the crypto. For example, if it’s a crypto exchange that has its own native coin it can offer discounts for paying trading fees with the coin. Once the crypto starts gaining popularity, the blockchain platform starts making good money through it.
Why invest in blockchain?
The major reason to take part in blockchain tech is because it supports the futuristic tech of the Web 3.0 world, such as Artificial Intelligence, IoT. NFT and Metaverse, the two highly speculated tech of Web 3.0 are developed on a blockchain infrastructure only. Thus, acquaintance with blockchain technology will enable businesses to take part in the Web 3.0 tech as well. For example, while NFTs were previously a thing for the investors, these are fast entering the commercial mainstream today. Some of the leading brands have already started building their branding avatars in NFTs and the response has been pretty great.
Then, another benefit is that blockchain technology helps with optimum safe-keeping of business data in digital format. Data theft is on rise and is costing several companies in large numbers. A blockchain platform safeguards all data entered with cutting-edge encryption technology that is impenetrable. Then, the immutability nature of blockchain ensures that nobody, not even the company itself, would be able to edit data kept in the blockchain database. This is another way by which blockchain technology helps businesses to prevent data theft and assure optimum possible protection of data. Added to businesses, even some military organizations are taking to blockchain infrastructure for ultimate safe-keeping of their confidential data.
Besides, blockchain facilitates faster execution of contracts or operations with the help of smart contracts – another revolutionary development by blockchain. Smart contracts assure automatic execution of a contract or a transaction once certain predetermined conditions have been met. If a business needs frequent transfer of payments or documents, then it will benefit big time through blockchain smart contracts. As these contracts work in a decentralized environment, the transfers would haven in a direct P2P environment with wasting time and money on intermediaries.