Although still in its infancy, there is a blockchain revolution and as such we want to take the time to highlight what the blockchain is, how it works and of course how to successfully invest in the blockchain projects that are disrupting traditional business models.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors of Blockchain Revolution (2016).
Blockchain enables participants to confirm transactions without a need for a central clearing authority, removing the need for intermediaries and third parties. By allowing digital information to be distributed but not copied, blockchain technology has laid the groundwork for a new type of internet.
The potential of the blockchain has been realised by many blue-chip companies around the world and they are now finding ways of integrating this technology into their core business models. These companies understand the strength of its ability to both disrupt and revolutionise and also know that failure to remain technologically “au courant” means being left behind.
Accenture, BP, Credit Suisse, Intel, J.P Morgan, Microsoft, Santander, Coca-Cola, UNICEF and UBS are just a few member names of the Enterprise Ethereum Alliance. This Alliance connects Fortune 500 enterprises, startups, academics, and technology vendors with Ethereum subject matter experts. Together, they hope to learn from and build upon the only smart-contract supporting blockchain currently running in real-world production.
Nations and governments are also getting involved with 22 European countries having signed a Declaration on the establishment of a European Blockchain Partnership.
According to Mariya Gabriel, Commissioner for Digital Economy and Society, “In the future, all public services will use blockchain technology. Blockchain is a great opportunity for Europe and Member States to rethink their information systems, to promote user trust and the protection of personal data, to help create new business opportunities and to establish new areas of leadership, benefiting citizens, public services and companies.”
Industries Adopting Blockchain
Below we have highlighted a few of the industries in which the companies using the blockchain have a competitive advantage, and the names of blockchain companies within that space.
Blockchain payment solution company, Ripple Labs have partnered with many big banks including RBC, Santander, Standard Chartered, American Express, Royal Bank of Canada, Western Union and UBS to name a few. Another blockchain based company, Stellar, aims to bring affordable financial services to the developing world and has partnered with IMB, Deloitte and Stripe. Even Facebook is launching a new team dedicated to developing blockchain technology.
Blockchain-based processing projects like Golem are creating global decentralised supercomputers that anyone can access. It is made up of the combined power of users’ PCs. Allowing users to rent out their CPU capacity and be rewarded with Golem tokens creating a decentralised sharing economy.
Blockchain cloud storage solutions allow storage to be decentralized and therefore less prone to attacks that can cause systemic damage and widespread data loss. Companies such as FileCoin, Storj and Aelf are leading the way in this industry. Data on a centralized server is inherently vulnerable to hacking, data loss, or human error. Using blockchain technology allows cloud storage to be more secure and robust against attacks.
One of the most universally applicable aspects of blockchain is that it enables more secure, transparent monitoring of transactions. Supply chains are basically a series of transaction nodes that link to move products from point A to the point-of-sale or final deployment. With blockchain, as products change hands across a supply chain from manufacture to sale, the transactions can be documented in a permanent decentralized record — reducing time delays, added costs, and human errors. It can also be used to monitor costs, labour, and even waste and emissions at every point of the supply chain. VeChain, Waltonchain, WaBi Ambrosus, Modum are a few of the blockchain companies using the blockchain the make improve the supply chain for business and enterprise.
Energy management has been a highly centralized industry for a long time. Energy producers and users cannot buy it directly from each other and have to go through the public grid or a trusted private intermediary. Companies such as Grid+ Wepower and Powerledger allow customers to buy and sell energy from each other in a peer-to-peer way.
There are many other industries that the blockchain will disrupt. These include internet advertising, music/entertainment rights, IP and distribution, online marketplaces, real estate, voting, internet of things to name a few. Undoubtedly, blockchain will be an integral part of business and society over the coming years, but like the internet and its applications, you don’t necessarily need a wealth of knowledge of how it works to use it or invest in it.
How can you invest in blockchain?
Cryptocurrency is not the blockchain itself but the digital assets tied to the value of a particular blockchain. It’s the most direct way to invest in the application of the technology. Each blockchain has its own cryptocurrency and it’s the means by which one participates in the blockchain. If a particular blockchain is adopted by the masses and used more often, then the cryptocurrency entrenched in that particular blockchain accrues value.
To make this clearer, here are a few examples of how to invest into blockchains through cryptocurrencies.
The Ethereum blockchain is the platform upon which decentralised apps run. If you want to invest in Ethereum’s blockchain, you would buy its cryptocurrency called Ether.
EOS, Cardano, NEO, NEM, Qtum, Lisk are a few other blockchains upon which decentralised apps run and are all competing to be the world’s most used blockchain.
If you want to invest into the EOS blockchain, you would buy the EOS cryptocurrency.
If you want to invest into the Cardano blockchain, you would buy the ADA cryptocurrency. If you want to invest into the NEO blockchain, you would buy the NEO cryptocurrency and so on.
There are many industries that the blockchain will disrupt and many startups are well on their way to making this happen. Investing into the companies harnessing the power of the blockchain to disrupt their respective industries has proven to be a successful strategy. Most of these companies have raised capital through ICO’s (Initial Coin Offerings) and have a coin or token connected to the ecosystem of their business. One invests in these companies by buying the coin/token of that company. As these companies gain traction and market share, the value of their con/token increases and gains are made.
In conclusion, the blockchain is proving to be a very powerful technology and it will disrupt many industries around the world. We are just at the very beginning of the blockchain revolution and it can be likened the internet in the year 1995. This presents us with great investment opportunities and so if you would like to invest in cryptos or blockchain, please call 0203 750 1810 or send an email to us at email@example.com