While the most commonly known application of blockchain technology is in cryptocurrencies, there are many other less known Blockchain Investment Opportunities and uses that are equally significant.
Blockchain refers to a distributed ledger, a shared database that is not stored in any central computer. Users have a copy of the database so that whenever there is a transaction, it is broadcasted to all copies where its authenticity and uniqueness is verified before it can be added. It is also important to note that there is no single master copy of the blockchain and cannot be artificially manipulated or altered. A transaction that is not supported by a majority of the hubs is disregarded and any change of rules must be approved by a majority of the users. Generally speaking, blockchain technology can be applied in categorizing any form of storable data.
The Financial Post recently reported that NextBlock Global Ltd., a blockchain-directed venture capital fund, is preparing to raise $50 in an IPO on the Canadian Stock Exchange. In June, there was a similar move by four Canadian blockchain industry groups that sought funding from the federal government to establish a supercluster to finance new R & D and attract startups. Part of the R & D would look into new areas where blockchain technology could be applied to add to the long list which currently includes:
- Election management
- Smart contracts
- Supply chain management
- Health record management
- Public administrative record management
- Land title management
Humanitarian groups are already using blockchan to simplify the donation process and increase transparency. On the other hand, the US Federal Reserve is considering the possibility of using blockchain to simplify global payments and settlement system.
Blockchain investment opportunities are as many as its applications. In fact, the opportunities are even more as some startups and experts are still exploring new use cases. The Bitcoin Market Journal suggests that it is best to invest in companies that are developing new uses for the technology. Some of them are startups while others are well-established companies that have decided to venture into blockchain. Examples are:
Microsoft is one of the founding members of the enterprise ethereum alliance whose aim is to create new standards for business use of ethereum blockchain. They have come up with a blockchain as a service platform, Azure, which supports ethereum and simplifies blockchain app development.
In 2014, overstock created Medici Ventures, a fund to manage investments in blockchain technology companies. Currently, the fund holds significant stakes in Ripio and Factom.
Blockchain capital is a fund investing in promising blockchain projects and platforms. It gives an opportunity to those who want to invest in ICOs but have no time to vet each individual project. Currently, blockchain capital’s Bitfury, Blockstream, Coinbase, Ripple, and ShapeShift.
Other ways of investing in blockchain include Initial coin offerings(ICOs) and Blockchain investment trusts.