The development of blockchain is in full swing and the world's largest companies are not passing by, but at least trying to join the crypto industry, following the “digital fashion”. We present to your attention 10 stocks that intend or are already using the blockchain in their developments. By investing in Blockchain stocks, you can earn some good money without diving in the cryptocurrency market, especially considering the fact that the latter is a risky business if you look at the current price of the Bitcoin
The distributed registry technology, which allows network participants to share values without the participation of banks, is now being studied and applied in the largest corporations in the world. Most of them do not intend to let anyone, especially the press, know about their research but the fact that each of the companies on the Forbes Global 2000 list, which is compiled by the aggregate indicator of turnover, profits, assets and market value, explores the blockchain technology demonstrates that it has now become an important point in future development of the world’s companies infrastructure. But before we get to the top 10, let’s make sure that you’re aware of what is blockchain all about.
Blockchain technology was originally created to transfer money from one network to another. Due to the high level of security, it was very soon noticed and used in situations where particularly important information should be sent in a secure format. Many investment platforms guarantee the security of your financial investments and personal information. But we are increasingly seeing how information theft can lead to undesirable leakage of your data. There is also a high probability of data leakage when the government makes a request for information about you.
Blockchain technology draws a line and provides solutions to these problems. When you invest through a blockchain platform, its distributed system ensures that your investment transaction is not carried out by a separate system. On the contrary, your information and investment transactions are processed by thousands and thousands of servers, each of which operates autonomously. And when your data is accessed separately, it is almost impossible to use them purposefully.
A well-designed blockchain includes elements of cryptography and mathematics to ensure the maximum degree of protection for your data. Each block of information is securely protected by its own digital key. Imagine that your personal information is stored in the blockchain. Hackers will have to hack thousands, if not millions of servers to access it. Most likely this is the reason for changing the ways of storing personal and sensitive information. Instead of placing it on centralized cloud storages, credit and insurance companies recognize the significant advantage of using distributed data storages such as blockchains.
Given the fact that the blockchain uses a decentralized system, this allows each party to enter into a contract using an unconventional method. Typically, any kind of deal or transaction requires the presence of intermediaries, such as a lawyer, accountant or any kind of public institution. Blockchain technology has ended the mediation by creating a smart-contract. To create such a contract, a set of codes will be required, which the two parties will use for exchanging money/stocks following a safe, understandable, and, most importantly, reliable method.
And, since there is no special need for intermediate control, the price of a transaction is largely minimized, making it especially valuable for the financial sector of the economy. Investing in using blockchain technology consists of a detailed reservation system. This system details each transaction, making it impossible to change or delete any of them. Once the transaction is approved, a series of block operations are created with secure access to the system. Each transaction is recorded in accordance with the permanent method, which makes it impossible to copy, delete or form any type of unreliable data.
Investments using blockchain technology eliminate unnecessary paperwork during the investment process. This greatly increases efficiency and gives more control to both parties. Moreover, the process becomes automated, and, accordingly, the likelihood of fraud is excluded. Operations are mutually agreed by the parties, and, as a result, the whole process is largely optimized. For companies engaged in investment transactions specified in the contract, traditional methods might create certain kinds of difficulties and slow the growth of the company. Based on smart-contracts and blockchain investments, contracts become valid in accordance with an automated process and are carried out in a blockchain environment.
This guarantees better time management and the security of transactions. Moreover, given the fact that the transfer is carried out through one platform, which divides information into millions of parts distributed across multiple servers, it has minimal risk associated and low possibility of third-party accessing corporate data.
If one would make a list of stocks for investment it would probably look like this one:
But the list alone doesn’t mean much without any explanation, which each of these got on this list.
IBM - tech giant with more than 1,500 employees whose main focus is on developing projects based on Blockchain technology. It’s an absolute truth that IBM was in a desperate need of something, some new technology or breakthrough to feel alive and kicking again, and here we are IBM is now really attractive in terms of investment. Lots of companies became interested in Blockchain technology after the success of Bitcoin, but IBM was one of the pioneers. If you decide to invest in IBM stock, one thing you won’t have to worry about is definitely volatility as IBM is not going anywhere anytime soon.
It is kind of ironic that MasterCard was interested in Blockchain investments and technology even though the technology itself came from an industry that is an absolute rival to MasterCard’s. In the year 2017 MasterCard has offered an alternative way making payments without credit cards, but still only was able to become the second company to decentralize its payments, as IBM got there first. Also, MasterCard is currently working on an app which purpose would be to make client’s transactions anonymous, reminds of something, doesn’t it?
Hitachi is a more-than-a-century-old company with a capitalization around $38.5 billion and it also got some brand-new Blockchain projects up and running. Some time ago Hitachi was able to team up with another company called Mizuho to make a platform that would enhance and make the supply chain management much more effective. However, later Hitachi was able to come up with a project that allowed payments to be verified with help of the user’s fingerprints. This way Hitachi has become one of the hottest stocks on the market.
This company doesn’t have to be introduced to anyone, and it is also another company to dive its fingers into the Blockchain tech field. Pretty much like in the old days, IBM and Microsoft are competing and are trying to decide who’s gonna get the bigger slice. Microsoft has already provided it’s Azure technology to NASDAQ and others. Currently, both of them are doing their best to develop private applications, so it’s really hard to decide which one of them for investment purposes.
This financial service provider was already able to build relations and cooperate with such institutions as Northern Trust and JPMorgan and both are making use of DLT now. Broadridge was able to develop some ways to use DLT like proxy voting and it was a great help to shareholders when there were reaching an agreement concerning some issues.
Horacio Barakat from Broadridge claims that companies do not deny the potential of the Blockchain, however, not all of them are capable of implementing it. Broadridge is a stock worth considering as it has the biggest banks and solely this fact provides a lot of reliability to it.
The only company among the ones that issue stocks and got on this list which actually has a connection to cryptocurrencies and their mining. HIVE has a number of facilities that participate in the process of mining ETH 24/7. After getting its 100 million dollar bill investment, HIVE announced that it is going to open a whole lot more farms. Even though it might sound appealing, those who are going to invest in the company’s stocks are advised to do that cautiously as one of their shareholders had to terminate their contracts with hive due to the fact that they were unprofitable.
This is a German car manufacturer which you might know as Mercedes-Benz has become almost the first auto company which started using the Blockchain technologies. It has quite large investments in other digital technologies that become popular nowadays, such as AI, this is one of the reasons why Daimler became a digital pioneer in the global car industry.
Daimer was able to establish a Blockchain based research for its benefit and also have their own cryptocurrency called MobiCoin.
Some people strongly consider Blockchain to leave the boundaries of the Internet eventually and if you’re one of such people, the shares of BofA are the ones you should get in the first place. BofA is on the second spot among banks in the USA and has almost as many investments in Blockchain-related research as IBM. The tech that BofA is researching concerns about privacy and authentication.
They have dug their fingers into this technology in early 2014 and became one of the first to see possible benefits coming out of Blockchain technology. Nevertheless, it’s necessary to note that not all of the technologies that they are researching might get applied and provide an actual profit. On the other side, there’s always a chance that their stocks might break through the roof some time.
Overstock.com yet another US retail selling platform which started accepting Bitcoin as a currency as they needed something fresh to pour life into their company. The company specifically invests in various Blockchain-related technologies that concern such important areas as financial, digital identification and others.
And to complete the list it is, of course, necessary to mention one of the biggest companies well-known for its retail sales. Along with the previously mentioned companies, Walmart was one of the first to make use of DLT and was spotted applying for patents that concerned delivery improvement. It even managed to get on the front pages of the magazines once it was announced that Walmart and IBM are cooperating to increase the safety of food during the salmonella outbreak. What is worth mentioning is that their mutual product is currently used by one of the biggest French supermarket chains.
More and more companies join the sphere of cryptographic technologies, which undoubtedly proves and shows the importance and necessity of the blockchain, as well as cryptocurrencies. Even such giant companies as Google and Apple are diving into this technology and doing their best to keep up with the others. And it’s not a wonder, really, as the blockchain technology has a series of advantages.
It is accurate, operational, orderly, and, most importantly, easily accessible. It gives everyone an equal opportunity to try their hand at investing. One thing is definite, the future of data protection and encryption lies in Blockchain, it’s not a secret for anyone that Estonia, a whole country, is using Blockchain technology to encrypt and protect the personal data of its citizens. Undoubtedly, Blockchain is worth it, as the technology has only begun it’s way to development and we will surely see more things that it’s capable of.