Ever since the launch of cryptocurrency, blockchain technology companies were right beside it to benefit from this innovative service. Originally what was built by Satoshi Nakamoto in 2008 as a ledger for bitcoin, has rapidly grown into its own business with endless capabilities. These online ledgers have adapted to be able to record much more than just bitcoin transactions. Nowadays they can record anything that has value to the point where many non-traditional businesses are taking up the services of blockchain technology companies.
But while you know it is very innovative and can offer so much to many different businesses, do you actually know what these organisations do? If you keep reading we are going to delve into everything you need to know to understand the internal processes of a blockchain technology company.
How do they work?
As blockchain technology companies are obviously businesses they need to make money in some regard to stay afloat. Understanding how they make money is one of the best ways to understand how the internal processes of these business works. To begin you should be aware of how a blockchain works.
An analogy that has helped many different people is to envision it as a spreadsheet that is hosted on an online network. The spreadsheet is then copied thousands of times so that every computer that is also connected to the network can view it.
The data that is on these networks is shared and updated on a continuous basis so if something were to change, everyone would be able to tell in real time. As there is no one true point of hosting, all of the records are truly public and can be verified with ease.
How they make money
While the revenue of these organisations stems from one point, they sell many different services for them to make their money. Below are just some of the services that you will find that a blockchain technology company can offer.
One of the main and more popular services that these businesses offer is the distribution of software. They charge a fee for other businesses to use their software and infrastructure to access their own ledger. This can be useful for other businesses that need a public record of all of their transactions.
If you have a problem that you believe can be rectified by a blockchain technology company then you are correct. They identify the issue or problem that you have within your structure and tailor a new specific service to help rectify the issue. Some real life examples of these providers include Gem, IBM and Deloitte.
You’ve heard of bitcoin and now maybe you want to reap some of the rewards for yourself that the cryptocurrency world has to offer. These organisations can help you set up your own token by purchasing and holding a large amount of yours. The end goal is to have their value increase to the point where other external investors would be interested in getting in on your start-up.
Other organisations offer a service agreement where they will build a platform for their client and host the infrastructure. Businesses that opt in for this type of service are required to pay for the maintenance and uptime of the system. Real life examples of these types of businesses are Microsoft and Blow.
By now you should have some idea of how these organisations work and what services they can offer. The possibilities truly are endless and can really put you ahead of your competitors.