Table of Contents
December 14, 2018
Blockchain is actively being introduced into our everyday life, this cannot go unnoticed. More and more people and organizations are investing in blockchain and cryptocurrency.
More and more people who understand the advantages of the blockchain are wondering whether it is possible to create a business based on the blockchain and make huge money. In this article you will find the 5 easiest to implement business ideas built on the blockchain. First you need to understand what type of block chain is best for you.
TYPES OF BLOCK CHAINS
Despite the fact that blockchain technologies are developing at a very dynamic pace, there are two categories into which all types of blockchain are divided: private and public.
Before turning to the difference between these categories, let’s consider all their similarities.
Both Public and Private blockchains have peer-to-peer decentralized networks. Network members have copies of all data. Networks synchronize the latest update information by consensus. The same mechanisms to protect the system, to avoid malicious attacks are used.
Now that we know similar elements of both types of chains, let’s learn more about each of them.
As the name implies, a public blockchain is a public network that anyone can use without the permission of third parties. Anyone who has access to the Internet has the right to access the public blockchain. Of the features of such a system, you can select the verification of all transactions throughout the system. Public blockchain ecosystems usually reward their members for mining and maintaining the immutability of the network. An example of using a public blockchain is Bitcoin Blockchain.
Public blockchains allow communities around the world to openly and securely share information. However, the obvious disadvantage of this type of blockchain is that it can be compromised. The rules accepted and applied from the very beginning of the blockchain system can not be changed long after their acceptance.
Unlike a public block chain, private blockchains are those that are used only by trusted participants. Overall control over the network is in the hands of the system owners. Moreover, the rules of a private blockchain system can be changed depending on different levels of authority, liability, number of participants, authorization, and so on.
Private blockchains can operate independently of other processes or they can be combined with other blockchains. This use case is usually used by enterprises and organizations. Thus, the level of trust that is required among participants is higher in private chains than in public.
HOW TO MAKE MONEY ON THE BLOCKCHAIN – 5 BUSINESS IDEAS
BUSINESS IDEA № 1. CRYPTOCURRENCY EXCHANGE
This is probably the most popular option at the moment to build a business based on the blockchain.
There are many open source platforms offering cryptocurrency exchange. You can easily take the code from them and build on its own platform, which will bring you money.
Github. com has an open source API and a basic cryptocurrency exchange interface. Using these codes, you will reduce half the work required and the costs associated with creating a cryptocurrency exchange from scratch. If you are not a developer, you will have to find such a person, despite the fact that the algorithm of actions can be found on Youtube.
Most often, for the normal functioning of the exchangers need a license, most often for the transfer of money, which can be very expensive in some countries, for example, in the United States. It is for this reason that many cryptocurrency exchanges change the placement of their offices in more relaxed conditions, for example, Binance. Binance is the largest cryptocurrency exchange in terms of the amount of ongoing cryptocurrency transactions, which moved to Malta, where there are very favorable conditions, adequate laws and reasonable taxes. Therefore, the choice of the country where you want to open your cryptocurrency exchange is an important factor in the successful conduct of your business. Don’t forget to choose any securities when you choose tokens for exchange.
BUSINESS IDEA № 2. SALE OF GOODS FOR CRYPTOCURRENCY
If you already have a business, selling goods for cryptocurrency will be a great way to increase your income.
By adding cryptocurrencies as a payment method to your store, you have an advantage in the process of transforming your entire business and increasing revenue. By maintaining proven business strategies, you increase the options for paying for goods, thereby increasing the potential number of buyers.
Many people are trying to enter the world of cryptocurrency, doing business is one of the best options for successful implementation in a new industry. You can innovate your business using applications that will help you to master the benefits of blockchain technology as a payment method for your customers.
BUSINESS IDEA № 3. LAUNCH YOUR E-COMMERCE
Purse. io is a great example of launching E-commerce. Here you can purchase items from Amazon. com with huge savings using different cryptocurrencies, despite the fact that Amazon itself does not accept cryptocurrencies as a means of payment instrument. Purse. io has created a platform on which the customer pays cryptocurrency for goods, which increases the number of potential buyers. It is necessary to note the special discounts offered by the platform itself.
One of the best ways to create your own e-commerce is the Shopify platform. It is versatile and very convenient to use.
In Shopify, you can create your own online store in minutes. There are already more than 600,000 stores on this platform. Creating an online business on this platform provides many advantages, all processes are already automated. Cryptocurrencies act as the main payment option for purchased goods.
If you have ambitions and a plan for the development of E-commerce you should think about your own brand, thanks to which your product and company will be different from others. A brand associates your products with your store or company. You make a mistake by choosing a platform that is not specifically customized to your specific trading processes. There are many platforms for making Ecommerce with wide functionality, and not all of them are intended for conducting sales.
BUSINESS IDEA № 4. CRYPTOCURRENCY OR BLOCKCHAIN CONSULTANT
It is clear that any blockchain project, especially a beginner, needs its own cryptocurrency or Blockchain Consultant. Only with the help of this specialist you can choose the current strategy for running your innovative business.
Cryptocurrency and blockchain consultants very often specialize in only one area, but there are also multi-purpose specialists, although there are not so many of them.
Consultants usually work on individuals or companies, help integrate the blockchain into daily work, conduct ICOs, Airdrops, develop tokens, communities, marketing strategies, analyze all the benefits of implementation, often control the work of developers.
It should be noted that many blockchain consultants in the past were lawyers and programmers. Noticing the trends in the development of this profession, they directly redirected their activities in this direction. By the way, you don’t have to be a lawyer or a programmer to become a blockchain consultant, it’s just a desire to learn and an understanding of basic things in IT technology.
The crypto market is still a young industry, not many people understand its concept, so if you understand this, you will earn big amounts of money on your knowledge for those who do not know anything about the block chain.
Consultants can also collaborate with other professionals, such as blockchain developers and marketing specialists, thus creating a complete package of services for their clients.
BUSINESS IDEA № 5. INTERNATIONAL MONEY TRANSFER
What do you do when you need to transfer a small amount of money from one country to another? Most likely, you use a transfer service, such as Western Union. This trusted intermediary transfers money between their offices around the world. However, these services often charge a fee of 10% of the amount transferred.
Today, blockchain applications in the banking sector are changing the way money is transferred around the world thanks to lower commissions. Bitcoin is the first use case. Companies like Ripple are using this radical financial technology to change the way they send money around the world for everyday customers.
If you do not have your own business, you can create your own platform for the transfer of international payments based on the blockchain. All that is needed for this is a couple of developers and a confident marketing company. The more companies you connect to your platform, the more money you earn on commissions from payments. The number of stakeholders in this should be a lot since most companies do not want to waste money.
BUSINESS IDEA № 6. STARTING AN ATM CRYPTOCURRENCY NETWORK
ATMs are a common occurrence. They are almost everywhere: in shops, in parks, in cafes, but at the moment very few ATMs work with cryptocurrency. Right now it is very easy to enter this sphere and create your own profitable business. The cryptocurrency ATM has exactly the same features and advantages as the usual one, which makes it not attractive. Cryptocurrencies are increasingly pouring into our daily life, over time cryptocurrency ATMs will become a vital necessity for us. It is obvious to all that soon it will be possible to pay for purchases in regular stores with cryptocurrency, and this ensures that ATM Cryptocurrency will be a profitable occupation.
BUSINESS IDEA № 7. CREATE A MERCHANT WALLET TO PAY FOR YOUR CRYPTOCURRENCY SERVICES
One of the best business ideas concerning Bitcoin is the creation of a payment option for goods for cryptocurrency. Trading hot wallets usually automatically convert accepted bitcoins into cash, reducing volatility and providing your customers with an additional payment method. Even PayPal has implemented cryptocurrency payments into its operations.
There are many services that allow accepting bitcoins and other currencies.
Only a small part of them:
- Blockchain (API key is given by request).
- Coinbase (you must fill out an application and wait for approval).
- Bitaps (open API).
Through API Bitaps service such payment is easier to connect. If Blockchain is required to write an application and wait for approval for three banking days, then you can connect yourself initially. The API has everything you need for this.
Each service has its own API, but the scheme looks about the same:
- Generate the payment by contacting a special link and passing the parameters.
- Create the bitcoin address of the seller to which the money will be sent.
- Create a link to your system (callback), which will be called by confirmation of payment.
- Specify the number of received confirmations of payment in the Bitcoin network (optional field, default is 3).
- Determine the network commission level (optional, default is low). The higher it is, the faster the transfer will occur.
The result is a generated address for receiving payment, a payment code and an bill. You use the code in the database to record, sort, or search for payment information. The bill can be sent to the buyer or used for the payment form.
EXAMPLES OF SUCCESSFUL STARTUPS
There are plenty of options that make your small business able to make big profits from the benefits of Bitwage. First of all, you will save at least 25% on bank charges. You can share the money saved between yourself and your employees, thereby increasing your own income and the wages of workers. Payment is sent and received within 10 minutes, your employees will be able to receive money during the day or when they want to. The benefits do not end there. When making international payments, the commission is very small, the processes are fast, so everyone wins when cooperating with this system. As soon as Bitwage becomes widely known and popular, people will prefer to work in those companies where innovative payment systems are implemented, rather than where the traditional banking method is still used.
In the modern world it’s not difficult to change the photo, video or audio. Regardless of the nature of your business, there may always be a fraud situation and very often there is no way to prove who is right. Uproov has developed an application that makes photo, video and audio unprecedented proof of your correctness. After that, it is impossible to make any changes in the image, video, audio, which makes these documents 100% proof of events or conditions of something. This prevents fraud and gives the customer confidence that he will get what he wants and on the contrary, that the seller will not receive losses due to fraud. No matter what the nature of your business, whether it is an online store, an insurance company or a car rental, you need the possibility of unprecedented proof of contract fulfillment. Uproov can be used to store images of important documents, such as contracts or notarized letters.
Filament is a secure wireless network that allows you to build your business anywhere in the world. You do not have to be a security expert to create a secure online business, all of which is already embedded in the application. The platform has a number of products. Their Smart Vending application allows you to control the amount of stock in vending machines. This means that you only send someone to replenish the machine when necessary, all the rest of the time you are only tracking inventory. Asset Tracking allows you to track the location of equipment in remote areas using GPS receivers. This function will even tell you if the equipment is working properly.
Storj is a decentralized blockchain-based storage solution. In other words, this is a cloud storage that is supported by the community. Leaving the capabilities of such a cloud, we can conclude that this will be the cheapest and safest type of cloud storage. This storage works like this: after uploading your file to the server, it is grinded, encrypted, and then distributed in small parts throughout the network. Only you have access to encryption keys, no one else can access your information. Since the information is distributed throughout the network, it is impossible to hack the server and steal all your data. Other advantages of having such a common network is that you will not have delays and failures, you will get the fastest data transfer speed. This reduces overhead and increases security. Another advantage of using Storj is that you can cheaply rent free space for storing information, which is of great benefit to your business.
Blockchain technology is developing rapidly. It is likely that in the near future, the “chain of blocks” will penetrate into all spheres of human activity. Blockchain – a promising direction for earnings and investment.
In addition to the examples we have described, the revolutionary technology of Blockchain has a high potential for use in many industries and sectors. While some industries have already begun to use blockchain in their operations, many of them are still exploring possible ways to get started.
Blockchain is a new trend in the technology world, which is very popular among investors and leading companies. Even in the early stages, technology has gained immense popularity since its very first use in cryptoworld. Every day, new applications based on the blockchain are opened and tested. Once blockchain technology is spread throughout the world, our life will change significantly, and new experience will give a big boost not only to information technology, but also to science.
Article and picture taken from Merehead.