- Five Benefits of Invest in Infrastructure Blockchain Project
In 2018, the competition among infrastructure blockchain projects becoming extremely fierce. No matter how the media and people talking about the rising blockchain industry, it still didn’t approve itself with a “killer app” with tens of millions of live user every day. In order to achieve this goal, blockchain industry will certainly need an infrastructure system that is more powerful, fast, safe, user-friendly and easy for developers to use.
By synthesizing my own recent observations and thoughts, I have discovered that investing in infrastructure blockchain project may have five possible ways to make profit:
Method 1: Rise Up of the Token Price
This is the most obvious one. When choose which project to invest, you can use these aspects to measure the potential value of the coin.
- Number of token holder’s address: This can reflect the level of consensus. More address means more users hold and would like to use this token.
- Scarcity: You can mainly look at the circulation, check whether the token economy has a burning mechanism, if so, at what speed.
- Liquidity: How much supply volume it has, and how many exchanges it get listed.
- Potential: How many times it has already increased since ICO.
Method 2: The Ecological System Dapp Airdrop
If you have experienced the 2017 market, then fork coin such as Bitcoin cash, Bitcoin Gold, Super Bitcoin should be familiar to you. The principle of ecological system Dapps airdrop is similar. If a new Dapp was developed based on the infrastructure chain, from the Dapp side, in order for them to obtain a big amount of initial users in a short period of time, they normally will airdrop a certain proportion of Dapp token to those already have the infrastructure token users. For example, the recent Ontology project was developed based on NEO. So Ontology airdropped at a ratio of 1 NEO : 0.1 ONT to those NEO token holders. The airdropped token from these Dapp projects can be traded in the secondary market, also, if you hold them, their value might increase in future too.
Method 3: Mining
If it is PoW’s consensus system, you can buy specific mining machine to mine the coin (Not easy) + Earn the mining transaction fees.
If it is PoS consensus system, token holders who have large amount of tokens could be selected as node. No coin can be mined under this consensus, but if you are selected to be a node, you can earn the transaction fee after you correctly processed the transactions.
Method 4: Dividends from Node Voting
This is a special way of earning money. At this stage, it may only be possible under the DPoS consensus system. In a recent popular discussion, the EOS Gravity from China and EOS New York have different opinions about this issue.
EOS gravity’s view: If you want to be a node for EOS, you will have some expenses for sure. You need to rent high-level servers, especially the memory requirements for those severs are very high. EOS do have some incentive plan for those nodes. So that’s why some people want to be a node for EOS system. So, as an EOS token holder, if you do your research and trust to vote for EOS Gravity as a node, EOS Gravity will minus the operating cost and distribute most of the profits to the users who voted for them.
EOS New York's view: The distribution of dividends to voters is a bad economic behavior and can lead to malicious competition. EOS New York will use the earnings for the growth of EOS ecology, increase of EOS token value, such as supporting Dapp development, expanding EOS influence, increase and maintaining the EOS community.
So, in future, we might be able to see different nodes have different ways of handling the profits. You can choose the one you prefer.
Method 5: Token Rental
In future, financing a project may not use ICO (Initial Coin Offering) method anymore. They may use leasing token method to borrow the system computation resources. For example, in the EOS system, you can use computation resources by hold certain number of EOS token. So if a Dapp project wants to be built on EOS, it only needs to borrow some unused EOS token from different users to get the resources needed for development for a certain time period. After the development is done, the principal and some interest can be paid back to the token holders. This financing model is still not clear yet, it’s just a way of thinking.
In summary, a closer comparison shows that compared to investing in a certain Application blockchain project, the value of investing in infrastructure block-chain project is undoubtedly greater.
- Date of publication:
- Sat, 03/10/2018 - 21:24
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