Seven Top Blockchain Companies To Consider
Dozens of publicly traded companies incorporate blockchain tech into their operations, offer blockchain-related services to customers, or play a role in the crypto industry. Some are exclusively focused on blockchain innovation and/or cryptocurrencies, while others are using blockchain-related products and services to complement an existing successful business.
With that in mind, here’s a list of seven excellent stocks you may want to consider if you want to invest in blockchain technology.
Heres What Youll Learn In This Guide:
- Blockchain technology is primarily used as a distributed, auditable record-keeping system.
- Companies are using blockchains in several ways, including storing sensitive data and improving supply chains.
- Many large companies, including Microsoft and IBM, are incorporating blockchain into their business operations.
Blockchain Stocks To Watch For
One of the most attractive properties of blockchain technology is its versatility of application. From the investment perspective, this offers many exciting opportunities. Investors can consider both purely blockchain companies and the companies that base part of their operations on blockchain technology. Below are just a few of the stock opportunities to keep an eye on in the near feature.
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The Disruptive Power Of Deep Tech
Corporate adoption correlates most strongly with technology maturity. Maturity begets proven use cases, which in turn demonstrate ROI, unlocking corporate funding. Advanced AI and cognitive algorithms are the clear leaders in corporate adoption today, followed by blockchain and AR/VR technologies.
After maturity, the most significant factor driving adoption is the industry in which a company operates. There, too, the existence of proven use cases is a crucial link fostering investment.
Here is a look at several standout deep technologies and their ability to disrupt different sectors.
Taking The Long View In Quantum Computing
Quantum computing attracts more interest than its current state of development might suggest. Although actual high-impact applications are probably still five to ten years away, quantum computing is likely to have a profound impact and create enormous value . Companies in finance, TMT, and chemicals are taking notice. In fact, quantum computing is one of the few deep technologies that already have a significant market for PoCs . For instance, Volkswagen established a proof of concept with a D-Wave quantum computer to tackle the tricky problem of traffic optimization. In 2020, Airbus launched the Airbus Quantum Computing Challenge to identify quantum applications that are designed to solve complex problems such as load optimization or aircraft design.
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Companies Betting On Blockchain Logistics
If youre looking for a potential first-adopter of blockchain technology at an industry-wide level, its worth noting one thing.
Below is a curated list of 15 influential companies in the logistics space. Included among them are industry leaders in the following areas:
- The Worlds Largest Ocean Carrier
- The Worlds Largest Industry Retailer
And so on.
What investments and/or endorsements have these industry titans made regarding blockchain logistics? Heres an alphabetical rundown.
What Is Blockchain Stock
What is blockchain? At its core, the blockchain technology is defined as a peer-to-peer application that allows immutable transactions. All those transactions are bundled up into blocks. Each of those blocks is time-stamped and appended to the previous one. So you get this never-ending chain of blocks.
Essentially, a blockchain is a distributed and decentralized database used to record all the transactions that happen in this network. Its often referred by the professionals as a form of a public ledger.
Now, what is a blockchain stock?
A blockchain stock is a share in a company that is using the blockchain technology to build applications.
However, we have to keep in mind that there are few pure-play blockchain technology stocks listed on the major US stock exchanges. But, as more industries are adopting the blockchain technology, more established companies are starting to develop blockchain-based applications.
In other words, companies that are developing on the blockchain technology can be considered a blockchain-related stock.
Read on for a look at the basics of where to buy blockchain technology stocks.
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Bitcoin Cryptocurrency Blockchain So What Does It All Mean
Let’s start with some quick definitions. Blockchain is the technology that enables the existence of cryptocurrency . Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented. A cryptocurrency is a medium of exchange, such as the US dollar, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
Docusign: The Saas Supercycle
Cloud computing was one of the best sectors in which to invest during the 2010s, and the trend is far from over in the 2020s. The world is continuing to go digital, and subscription-based access to services is helping businesses and consumers alike to make the transition. DocuSign is a platform that facilitates electronic signatures and agreement processes, and it uses blockchain technology to help secure signer identity and contract evidence.
As subscription models go, SaaS firms such as DocuSign are as cycle-free as they come. SaaS businesses generate stable and predictable revenues, and many are disrupting the industry status quo and growing rapidly as a result. As SaaS businesses age, they could become more cyclical since their stability depends on retaining subscribers and staving off competition from similar services.
But, for now, any cyclicality for a blockchain stock like DocuSign comes primarily from the stock itself. If growth exceeds investor expectations, then the share price can spike. If growth is lower than expected, then the opposite often occurs.
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Using Multiple Technologies For The Right Solutions
11 of the top 100 public companies are working on multiple solutions with different blockchain technologies.
Some of them are using different technologies because they are better suited for the use cases, others are simply testing the waters to see which technologies work best.
A great example is Samsung Group, which is currently working on a number of blockchain initiatives with various technologies. Its subsidiary Samsung SDS provides blockchain security and tech solutions to Samsung’s customer base.
A few of their initiatives:
Other examples of companies that are using multiple technologies for multiple solutions can be seen below.
Companies Investing In Blockchain
Now that we have covered quite a bit about the blockchain, it is now time to see which companies are mostly interested in blockchain technology and are helping it grow to new heights.
If you are interested in learning which companies are using blockchain technology, check out the detailed article on it: What Companies Are Using Blockchain Technology?
Caption: 42 companies investing in blockchain technologies
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Forbes Releases 3rd Annual Blockchain 50 List Of Companies Paving The Way Using Blockchain Technology
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NEW YORK February 2, 2021 Forbes today announced its third annual Blockchain 50 List, a compilation of the top 50 companies that are leading the pack employing distributed ledger technology.
· The Blockchain 50 companies span a wide range of industries and are heavily investing in the technology to improve their businesses. The businesses on this list are outpacing their competition by using blockchain and bitcoin, which was up 300% in 2020 and getting increasingly more respect in the C-suite.
· While 23 of the companies are based in the United States six are based in China, including the worlds largest bank, the Industrial and Commercial Bank of China two from South Korea one from Australia and one from South Africa, many of them making their debut on the list. All companies considered hold a minimum revenue or valuation of $1 billion or more.
· The list represents enterprises embracing the technology underlying cryptocurrencies like bitcoin, and using it to speed up business processes, increase transparency and potentially save billions of dollars.
People And Partnerships Matter
Investing in technology is good investing at the same time in people and partnerships is even better.
Building the right mindset and skills within the company is critical to translating successful PoCs into real solutions for implementation and adoption. Deep tech development requires the right mindset and some degree of cultural transformation, especially in companies with a strong culture of safety and risk analysis, said the head of innovation at a railway company. We must also find ways to reconcile the long-term horizon of the industrial deployment with shorter technological innovation cycles.
Embracing deep tech innovation requires more than just financial investment. Business teams need to be open-minded, agile, and able to embrace new technological solutions. The top two barriers to deep tech adoption are human: managing change, cited by 72% of companies, and attracting talent, cited by 55%.
The survey results also show an inverse correlation between technology maturity and difficulty in managing change. In industries in which use cases are less well established , change management is more challenging. Active commitment and mobilization of the entire executive team can help ensure that the company embraces new technologies.
Debt financing can be an issue for capital-intensive industries such as transportation and infrastructure , while finding equity partners is a more significant hindrance for chemicals and financial institutions.
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Top 50 Venture Capital Investors In Blockchain
Ever since Blockchain came into the picture, we have seen some massive development in this domain. Many companies and startups are venturing into it. Angel investors or VCs or Venture Capitalist that you may know have gained interest in this technology and have started investing in supporting such companies that want to work on Blockchain and its applications based on the same. Here we bring you the list of top 50 VC investors in Blockchain.
How To Invest In Blockchain Technology And Gain The Highest Returns
Blockchain technology development by world’s leading tech companies and its adoption promising economic growth potential for businesses has opened up lucrative investment opportunities. Nevertheless, market players need to have the knowledge and awareness of the prospects of this new technology, the investment options, and key market players before making any decisions.
Historically, blockchain technology was best known as the transaction ledger of Bitcoin. Nowadays, blockchains transcend cryptocurrency applications and emerge as a promising transformative technology in many industries, such as financial services, logistics, energy, healthcare, retail, and many more.
The main drivers of growth behind blockchain technology are the need to simplify business processes and the need for reliable supply chain management. These drivers will push the estimated growth of the blockchain market from $3 billion in 2020 to a projected $39.7 billion in 2025.
Counting on the earlier market performance, and the future predictions painting an encouraging financial picture, an increasing number of businesses are looking for ways to integrate blockchain technology and gain revenues. Read on to learn about some of the most profitable ways to invest in blockchain.
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How Does Blockchain Work
The purpose of the blockchain is to record all of the exchanges of data. This record is known as the ledger. The exchanges of data recorded on the ledger are known as transactions.
Verified transactions are added to the ledger as a block. Each block has three elements:
Miners can create new blocks on the chain through mining. While every block has its own nonce and hash, it also references the hash of the previous block in the chain.
This means that miners need to use specialised software to solve the complex math problem of finding a nonce that generates an accepted hash of which there are around four billion combinations that need to be mined before finding the right one.
This process makes it extremely difficult to manipulate the blockchain. Once a block is successfully mined and is accepted by the nodes on the network the miner receives a financial reward. Nodes are electronic devices that keep a copy of the blockchain and keeps the network running.
How Blockchain Stocks Are Cyclical
We need an understanding of what makes a company go through cycles before we can dive into the companies themselves. On one end of the spectrum are companies that sell physical products. This landscape can comprise a diverse group of companies, even within a relatively narrow sector such as the tech hardware industry. Revenue for such companies may depend on consumer demand or be tied to innovation that drives a hardware upgrade cycle among customers and AMD — more on them in a minute).
Then there are those sectors and companies that go through longer cycles based on the health of the overall economy. Three examples are airlines, automakers, and oil and energy firms. When money is flowing through the economy at a healthy pace, demand for these core goods and services is strong. But during times of recession, revenues for companies in these same sectors can begin to contract. Retail sales are similarly cyclical, and a company such as the payment processor Square , discussed more below, is directly affected due to its relationship to the retail landscape.
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How Did Blockchain Come About
Blockchain has been in existence as a concept in computer science even before it was used in cryptocurrency. The initial form of blockchain was known as the hash tree or Merkle tree, patented by Ralph Merkle in 1979. It functioned by verifying and handling data between computer systems.
In 1991, the Merkle tree was used to create a secured chain of blocks of several data, which were connected in a chain, one after the other. The newest record in the chain will contain the history of the entire chain, and this is how blockchain was formed.
In 2008, a set of people known as Satoshi Nakamoto came up with a concept of distributed blockchain which would contain a secured history of data exchanges. It functions through a peer-to-peer network to time stamp and verify exchange transactions and could be managed independently without a central authority.
The peer-to-peer version of this electronic cash is known as bitcoin and this is how the blockchain we know today came about.
Three Steps In The Journey To Deep Tech Advantage
Companies looking to build a deep tech advantage can follow a three-step path.
Step 1: Use external partners to understand trends and scout innovation. Deep tech comes from R& D. Many companies need to look to external partners to understand tech trends and scout promising innovations. Expertise can come in multiple forms:
- From suppliers
- From partnerships with academics
- From public research centers
Step 2: Make initial investments in startups to test promising solutions. Once companies have identified promising trends and startups that are developing interesting solutions, they can invest in a few opportunities and jointly build PoCs.
CVC funds or external venture capital and private equity funds are alternative investment routes. According to a partner at a venture capital fund that specializes in digital and deep tech startups, Venture capital funds are able to interface between startups and big corporations both in the content of the project and regarding different culture and communication style. They can put relevant startups in contact with companies as they mature. The CEO of a cosmetics companys CVC fund said, Having a presence in external funds provides access to deal flow and eventually an opportunity to co-invest if relevant. Venture capital and private equity funds have very strong capabilities in scouting emerging opportunities in promising companies.
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Blockchain: Hype Or Not
Blockchains hype is something that not every one of us can agree on. Is blockchain really going to change how we solve problems in the future? Well, thats hard to answer. But, there are still different opinions on whether blockchain is the answer to all the problems.
We are discussing blockchain hype because it determines the investment drive of companies. However, we can also see the situation from a different scope where the companys investment impacts the hype surrounding blockchain.
In any of the cases, it is hard to ascertain the real impact of blockchain until it matures. Thus, if you pick up the numbers, predictions indicate that blockchain development is bound to grow in the coming years. Apart from the development of budget growth, the blockchain spending will also see a 76% year-by-year growth and can reach $14.4 billion by 2020.
Bruce Schneier, a security technologist, is not a fan of blockchain technology. His piece on why there is no good reason to trust blockchain on Weird explains why he thinks that way.
On the other hand, if we take cryptocurrencies, then blockchain might be in a good place. Bitcoin soared to new heights in 2019, where it reached $19K. However, it did fall to a mere 3$K in the upcoming weeks, but it is now hovering stable around $10K. There are already predictions by many investment gurus on how bitcoin can read $100K in the future. If it will reach there or not is a debate for another topic.