Why Are There So Many Blockchain Companies?

By Barrie / June 15, 2021
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A trend in the world of cryptocurrency. Blockchain has continued to make waves in the money and investment world. It even gets better as blockchain can provide solutions to business settlements.

Many people looking for answers about blockchain and its services might decide to just go on the internet and find millions of articles about it or they might choose to use a Block Chain Inquiry APP.

 Before now, blockchain was well known for its financial transactional superiority in the digital market. Blockchain has gotten bigger and better over the years.

These days, blockchain plays a more active role in the lives of individuals and companies. Keeping financial records, contacts, and even managing the data of government agencies.

And this growth does not seem like there will be a halt anytime soon. This is because a large part of the world economy is somehow intertwined with blockchain and digital currency in general.

Many digital marketing companies are coming up because there is a lot of money involved. A lot of blockchain companies have joined the train. But how do they make their money?

How They Make Money

An obvious one is they develop applications. Pretty basic right?

Well, there are many other things they do. These blockchain companies are in for business and they mean to stay as long as possible. Here are some of the things they do to get money.

1. Contract Agreements

As a company dealing with digital currency, many other companies and even governments are joining the trend.

One way that Blockchain companies earn money is by making big money contracts with other companies.

These companies and organizations may require blockchain infrastructure and will require certain contracts to be actualized like every other business.

It may be that they need certain applications designed for them, while the blockchain company hosts the service for several years according to the agreement.

2. Transactional Fees

The blockchain companies host big corporations and many other businesses that require blockchain infrastructure and for other institutions and investors.

3. Cryptocurrency Speculation

For many, blockchain is only used to trade bitcoin. That is a misconception. Bitcoin was indeed part of the reason why it became this popular by revolutionizing the digital currency market.

Unknown to many other people, blockchain is a host to many other cryptocurrencies other than bitcoin.

4. Specific Purpose Software

It is not news that big corporations develop blockchain software for their clients for whatever purpose. Blockchain companies can provide applicable solutions for transactional establishments.

Big companies like IBM use their software developing skills to develop blockchain technology, the sell the solutions to other businesses that may need the services.

5. Software Services

This is different from the previous point because the software that is sold here is not for specific purposes.

These blockchain companies also earn money by providing other software solutions like building APIs for some businesses or even cloud storage.

Some blockchain companies also provide data management software’s for other businesses that might need it.

Conclusion

Starting a company comes with a lot of risks. Many people who have blockchain companies have taken risks. It is time to join the blockchain party.

There is so much money to be made. What are you waiting for?

About the author

Barrie

Barrie Poeton graduated from New York University, majoring in economics. He currently works as a product manager for a public company. He has a deep understanding of industrial products and business news, which he writes about on his blog.

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