The blockchain space is undergoing a major transformation. In the early days, it was all about bitcoin and Ethereum. But now, other cryptocurrencies are also looking to gain market share by adopting blockchain technology. Many of these new currencies have not been developed with the help of a centralized organization like a bank or an investment firm.
Instead, they have been built using “distributed ledger” technology that is usually found within a digital ledger or database such as the one used within a cryptocurrency. These digital ledgers are commonly referred to as blockchains.
Blockchain-based digital currencies such as Bitcoin and Ether enable their users to transfer funds around the world without involving any third party such as a financial institution or an investment fund. In this article, we’ll review what passive income is, how it can benefit you in the blockchain space and its many uses case studies .
What is passive income?
Simply put, passive income is income generated without any effort or input from you. There are many ways to generate passive income, but the most common method is to invest in something that generates regular income, then rent it out. In the blockchain space, companies are building decentralized applications (dApps) and decentralized networks that use blockchain technology.
Companies are also building digital wallets and trading platforms that use blockchain technology. Since most blockchain-based companies operate on a peer-to-peer network, they can generate passive income by renting their platform out to other companies.
How Does Passive Income Work with the Blockchain?
In order to benefit from passive income in the blockchain space, you first need to understand how the system works. When you buy a product or service from a company, often called a provider, you are making a financial commitment to that company. In return, you receive regular income from that company based on the amount you have committed to them.
Using Passive Income to Build Wealth in the Blockchain Space
There are many ways to build wealth through passive income in the blockchain space, including partnering with and/or investing in blockchain companies. You can also invest in companies that are building decentralized apps (dApps) and decentralized networks that use blockchain technology. If you are interested in the decentralized storage space, you can partner with a storage-tech company building applications on the Ethereum blockchain.
Conclusion
The blockchain space is undergoing a major transformation. In the early days, it was all about bitcoin and Ethereum. But now, other cryptocurrencies are also looking to gain market share by adopting blockchain technology. Many of these new currencies have not been developed with the help of a centralized organization like a bank or an investment firm.
Instead, they have been built using “distributed ledger” technology that is usually found within a digital ledger or database such as the one used within a cryptocurrency. These digital ledgers are commonly referred to as blockchains.
Blockchain-based digital currencies such as Bitcoin and Ether enable their users to transfer funds around the world without involving any third party such as a financial institution or an investment fund. In this article, we reviewed what passive income is, how it can benefit you in the blockchain space and its many uses case studies.