Ben Dickson is a software engineer and the founder of TechTalks. More posts by this contributor Unlocking the potential of eye tracking technology Awhile back, a blockchain startup approached me with their pitch, a decentralized social media application in which users can earn money simply by doing what they already do on other platforms, such as posting updates, photos and videos.
I would have been intrigued had they sent me the message a couple of years ago. But not so much after observing the space for more several years. Regardless of whether they will succeed to deliver on their promises or not, these projects highlight one of the problems that haunts the centralized internet.
Users are seldom rewarded for the great value they bring to platforms such as Facebook, Google and Amazon.
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Blockchain applications suggest that decentralized alternatives to current services will give users the chance to collect their fair share of the revenue they generate with their participation in online ecosystems.
What can you sell? A handful of blockchain platforms enable you to rent your unused storage, earnings on blockcan CPU cycles and internet bandwidth to those who are in need.
Report Scams Cryptocurrencies vs. Dollars The fact that cryptocurrencies are digital is not the only important difference between cryptocurrencies and traditional currencies like U. Cryptocurrencies are not insured by the government like U. This means that cryptocurrency stored online does not have the same protections as money in a bank account.
The premise is simple: You list your resources along with your payment terms on the application and get paid in the proprietary earnings on blockcan of the application when others use them.
Purchases are arranged, performed and paid peer-to-peer through smart contracts, bits of code that run on blockchain without the need for a centralized application server.
Examples include Golem and iExec, two decentralized marketplaces for computing power. Golem and iExec aim to replace centralized cloud providers such as Amazon how can you make money for home Google, in which the service provider sets the rates and rakes in all the profits.
Storj and Filecoin are two distributed storage networks where users can earn cryptotokens for sharing their free hard drive space with the network. Both platforms are designed to provide infrastructure for various applications, such as web hosting and streaming services.
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Gladius, a decentralized content delivery network CDN and DDoS mitigation solution, enables users to monetize their internet bandwidth to serve content from websites and services running on the network.
These applications provide a good opportunity to turn into a side income the hours that your computer sits idly in the home or office. Other blockchain platforms enable you to monetize your data. An example is Datum, a decentralized marketplace for user data. Datum enables users to earn DAT tokens by choosing to share it with other organizations. Other players in the domain include Streamr, a real-time data-sharing platform geared toward the Internet of Things IoT.
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With Streamr, users can earn DATAcoin tokens by sharing the data their connected devices generate with other devices that need it to carry out their functions and companies that use them for analytics and research. Data is a huge market that is currently dominated by a few big players such as Google and Facebook.
These companies hoard user data in their walled-garden silos and use it to make huge profits. Blockchain platforms give users the choice and power to claim their share of that market by giving them back the ownership of their data. Matchpool is a decentralized social network that enables users to monetize their groups and online communities. Matchpool provides earnings on blockcan decentralized equivalent of Facebook groups and provides tools for administrators to earn GUP tokens by setting fees on membership and access to content.
Brave removes ads from websites and instead gives users the choice to earn Basic Attention Tokens BAT by opting to view ads. How much do you earn?
Few of the companies I reached out to could provide stable numbers or average figures. Also, the value of the resource you share on these platforms is often subject to supply-and-demand dynamics. Storj, the decentralized storage network, had the most accurate information to share.
Several factors affect the final earnings, including whether the farmer nodes store primary or mirror copies of data, how long they participate in the network and how well they perform earnings on blockcan terms of up-time, bandwidth and response times.
Storj has also launched partnerships with FileZilla, Microsoft and other companies earnings on blockcan build decentralized apps on top of its network, which could increase demand for Storj space. Currently the network supports monetizing email inboxes, but in the future, the company plans to provide users with the option to get paid for sharing various categories of data, such as the location data their phone collects, apps, services and websites they use, data that their smart gadgets collect and others.
That last bit sounds a bit invasive on user privacy. The Datum network currently has 80, users, and since the launch of the Datum App in late December, users have collected 1.
What are the costs and risks? One of the real risks of earning cryptotokens is the constant price fluctuations. The value of what you earn today could double overnight — or drop by half in the same manner.
Simple Scalping Strategy to Make $100 a Day Trading as a Beginner - Cryptocurrency Tutorial
However, Tate also notes that many of the current resource-sharing platforms are PR projects that will never scale. Some users evaluate projects by examining the market cap alone, which Tate believes is the absolute worst way to gauge a projects long term viability. How do you deal with the liquidity problem? Another challenge users will have to overcome is what to do with the tokens they earn from monetizing their resources. Some platforms have multi-faceted economies that enable users to use their earned tokens for various purposes.
For instance, in Flixxo, a decentralized streaming service, users can earn FLIXX tokens by sharing their free disk space and bandwidth to host content on the network. They can then use their earned tokens to consume videos published on the platform.
Trading or investing in projects is one way to make money in the blockchain industry. Even the best investors can experience prolonged periods of loss, and one of the ways to survive them is to have alternative sources of income. There are other methods than trading or investing that can help you increase your cryptocurrency holdings.
But that is still a limited use case and might not be the problem they want to solve with their earnings. Digital currencies and tokens have a liquidity problem. There are very few retailers and online services that accept Bitcoin as a earnings on blockcan of payment, and even fewer that accept other cryptocurrencies. Users often must find some online exchange that matches buyers and sellers of various digital and fiat currencies.
The process is slow and complicated and involves fees at different levels. An alternative is Bancor, a decentralized liquidity network built on top of the Ethereum blockchain. Supported by its own token, BNT, Bancor enables users to convert between tokens supported on its network without the need to find a buyer or seller.
Bancor already lists several dozen tokens on its network and plans to add more in the future.