StrongBlock; What It Is, How to Earn Money & How It's Taxed
The future of the digital space continues to expand overnight, which to those who are within the crypto space, comes as no surprise - however, a new kid bursting in on the blockchain is none other than StrongBlock.
StrongBlock sees the future based upon the blockchain, however, unless you are well versed in this technological advancement, it can be a pretty daunting place to venture into. Therefore StrongBlocks mission is to make blockchains easier for anyone to support and participate in.
Now, whilst this short intro covered a partial piece to the puzzle, I wanted to simplify StrongBlock within this short article, covering not only the what, but also looking at an overview of the ecosystem, along with how you can earn money utilising Strong.
What Is StrongBlock?
StrongBlock, as mentioned above, is a blockchain platform that aims to change the way the blockchain networks work. The reason for their simplification process is due to the easy to use Node as a Service (NaaS) tool, which allows those who aren't well versed to launch a blockchain-compliant node swiftly, whilst also rewarding them for running them.
Before StrongBlock's NaaS, running a node involved a lot of knowledge of the blockchain - including the ability to code and having a server which was able to run the node throughout the day. In essence, if you were to dive into nodes prior to StrongBlock, you had to have either a lot of time on your hands to educate yourself, or you had to be well versed to find it easy.
However, what StrongBlock did was automate all the processes, making it possible for anyone to get involved in the blockchain revolution.
StrongBlock utilises STRONG as their governance token, these are tokens that developers create to allow token holders to help shape the future of a protocol.
What Is A Node?
For a cryptocurrency to run, or as I've stated in this article, a Blockchain, for these to run efficiently they require nodes to operate.
Nodes are connected to other nodes, creating a network packed full of information including transaction histories, and data which is stored, received and transmitted.
Notes are incredibly important for network security and integrity.
Why?
Because nodes are the rule keepers.
Nodes have all the information pass through them, which means multiple nodes must agree that the transaction is legitimate by ‘confirmation’ before it is agreed to be final.
However, each blockchain has a different way of rule-keeping & StrongBlock requires Ethereum.
What Are Strong Nodes?
Strong nodes support the Ethereum network, they require no hardware and STRONG is an ERC-20 token.
To start earning money from your nodes, you have to ensure to firstly buy ETH & STRONG.
To do this you can utilise well-known platforms to buy ETH and once you have purchased this you can transfer it over to your wallet in order to swap for STRONG.
Once you have your node you will not be able to transfer this to another wallet and will have to ensure to keep a certain amount of money within your wallet to avoid high gas prices.
To note; STRONG prices are volatile and can change - for example, it shot from $20 to $200 in the first 6 months of 2021 and is now sitting at $738.14. - but please ensure to check yourself regularly.
So, How Can You Earn Money Through StrongBlock?
STRONG has a great potential to become a means of passive income, you can earn 0.1 STRONG per 7000 ETH blocks, currently, circa 6400 a day = 0.091. You can claim as much as you would like, however, you need to ensure you have an understanding of the fees that come with it, such as gas.
What Are The Tax Implications of StrongBlock?
As with everything, depending on where you live will create the differentiation when it comes to tax implications & rulings.
To be clear, as I am UK based, I will provide a rule of thumb outline when it comes to taxation of StrongBlock.
Due to the nature of StrongBlock and the inability to sell the asset on, within the crypto and tax world, StrongBlock cannot be deemed as an asset - it will be deemed as an expense.
Therefore, when purchasing StrongBlock the original purchase will be seen as a business based expense, and everything in which you earn from it will then be deemed as an income or an earning - which is taxable.
The taxable rate will be dependent on your current income level, therefore it will either sit within 20%, 40% or 45% taxation.
This, therefore, means that the structure when setting up your investment in STRONG is incredibly critical and I would always advise seeking professional advice from someone, such as an individual within Myna, who have experience in setting up STRONG.
Additionally, seeing as STRONG is still a very new concept and many are wanting to sell their node as an asset, there is a likelihood that tax rulings may change over time - but right now these will stay as an income-based tax payment.
In Conclusion
If you are looking to create a passive income or earn money through your crypto, as a beginner I would thoroughly advise you to seek assistance from someone with knowledge of the crypto field - including how to set your wallet up, how to buy & how to manage.
All in all, this guide is a short and to the point outline of StrongBlock & if you would like to learn more, or have support in investing, please feel free to reach out directly.
