Blockchain has become an incredible advancement in recent years. With the meteoric rise of its use, investors often wonder: how to invest in blockchain technology? Blockchain is especially advantageous, as it solves more than one problem; it also provides numerous solutions for a variety of startups, businesses, and government entities. In this way, blockchain technology boosts efficiency, increases security, provides transparency, and reduces costs in the work processes of financial, technological, educational, or governmental spheres.
Originally, blockchain was developed for digital currencies like BTC (Bitcoin) and used for secure currency transactions. Blockchain supporters, though, noticed the benefits of this technology and integrated it into everyday work processes through tools like e-governance and data storage.
Wikipedia gives the following definition of blockchain technology:
In other words, blockchain can be used by anyone who is interested in processing safe, secure transactions, whether they deal with money, supplies, or other assets in the process of transfer. When transactions within the system are completed, they are recorded in the system “block,” and cannot be further changed or deleted. This is visible, and provides trust to users.
The decentralized approach without third-party involvement or governmental control is another great benefit of using the system. This is why many industries use the blockchain platform to optimize their work processes, increase management productivity and efficiency, and provide high-level security.
Let’s check out an overview of blockchain’s main advantages:
This type of immutable system of records allows all users to be equal, as there is no one person in charge of everything. Due to the transparency and permanence of the data blocks, all users are aware of current events and certain of the safety of their records.
Blockchain Implementation
Potential blockchain implementation in various fields and industries attracts VC (venture capital) flow for business-development purposes.
One of the most common fields in which blockchain is applied is cryptocurrency (investments in Bitcoin, Ether, or others). Purchasing crypto coins is one of the direct ways of investing in technology. One can purchase a certain type of coin or token, and in some time, when it is listed on an exchange, it is possible to trade it, thereby gaining profit from the increased value. According to CoinMarketCap, market cryptocurrency capitalization is approximately $354 billion. The most popular types of cryptocurrency are:
It must be emphasized, though, that lately, investing in coins and tokens is becoming less and less popular. The reason for this tendency can be explained by the growing popularity of the various startups and ICO campaigns launched on the blockchain platform. The main thing that differentiates them is that they not only promise to increase the value of an investment, but also promote a product or service to enhance certain processes in a number of industries.
Consequently, in addition to cryptocurrency, blockchain can be applied in the following spheres:
- banking and financial technologies
- charity and donations
- data storage and security
- education
- energy
- government and voting
- insurance
- IoT
- legal and law enforcement
- marketing and media
- medical industry and healthcare
- logistics and supply chains
Take a closer look at the features blockchain provides in the above-mentioned industries:
Such a variety of use cases proves how much blockchain contributes to the workflow of any business. As long as there are records, valuable data, or information to be stored, blockchain technology is the way to go!
If you have interesting ideas and want to launch a startup based on blockchain, you are more than welcome to consult the Applicature team! This blockchain agency helps launch ICOs and supports the development of ICO cabinets, smart-contract deployment, and other related services.
Since 2014, interest in blockchain technology has gradually increased from $30 million a year to more than $200 million in 2017. According to estimates, 2019 is going to reach $400 million in investments!
With such growing popularity, many people are seeking interesting ways to invest in blockchain. Let’s consider the main tendencies of investing.
Best Ways to Invest in Blockchain
Blockchain technology is powered by cryptocurrencies, but there are many other ways to invest in blockchain without contributing your money to digital coins. The best option, as of today, is to consider investing in blockchain startups and crowdfunding platforms. As the crypto market is filled with all kinds of scams, it is crucial to conduct precise, careful research in order to eliminate possible risks and choose the strongest options.
As with any investment, it is crucial to do your research and understand the specific features of the underlying technology. First, you can use ICO rating sites with statistics and expert reviews to find out as much as possible about your investment options. Use thematic blogs and different cryptocurrency channels to keep up with the latest news (Box Mining, Data Dash, Tommy World Power, etc.)
The main aspects to question are:
- What is the concept behind the project, and what problem does it solve?
- What is the industry of the project launch and how does it work?
- Is this product a competitive one? Compare the strong and weak sides of the project.
If the answers fully satisfy you and provide complete, comprehensive, explicit information, then the project is worth consideration.
Investing in startups means investing in company stocks or funds that use blockchain technology to produce a certain product or service. How should you invest in blockchain stocks? Research a number of industries that use blockchain technology because of its permanence, transparency, immutability, and better protection.
You can choose any blockchain company to invest in! If you’re a company representative or CEO and you’re seeking ways to implement blockchain, start with researching and evaluating all technological advantages. This can be the missing link you are looking for, as blockchain provides your business with cost efficiency, security, and transparency. And keep in mind that these are only a couple of the advantages blockchain could bring your organization.
Let’s discuss the major industries that use blockchain technology for business enhancement and management optimization.
Financial Technologies
Financial technology is growing rapidly nowadays, as it deals closely with everyday banking procedures such as payment processing, investments, and buying and selling orders. In order to perform these actions on a high level, FinTech is widely accepting e-commerce platforms, online exchanges, and banking systems. Among FinTech companies, blockchain startups benefit the most. A global FinTech report states that 77% of companies are expected to adopt blockchain for better convenience:
Financial companies investing in blockchain use the technology for these reasons:
- it provides a decentralized network for sharing information securely and scalably
- it provides immutable data transfers
- it decreases spending and provides cost efficiency
- smart-contract use ensures user obligations are met before transactions
- a cryptographically encrypted system provides transparency and conflict-free data exchange (without third-party involvement)
Below is a list of FinTech startups you can consider:
By investing in financial startups, you will help develop various programs and services that enhance productivity in the financial sphere, reduce costs, and provide enhanced user security.
Check out the best ICOs in Finance!
Supply Chain
Another industry that adopts blockchain globally is the supply chain. This refers to the supply/logistics network that deals with data and information about products (goods or services) and the people involved in the trading process.
Blockchain provides solutions to keep supply-chain records transparently and securely, revealing accessible product details on:
- origin
- compounds
- supplier/producer information
- consumption and product storage details
Companies investing in blockchain allow supply-chain and logistics networks to reduce human error, avoid product delays, eliminate risk of fraud or scams, enhance management, and increase trust between the parties.
Have a look at the benefits of blockchain implementation in supply-chain management:
Here is a list of the latest blockchain supply-chain startups.
Healthcare
Current healthcare issues deal with privacy, data accessibility, and trust between patients, doctors, and insurance institutions. When they provide medical information in a centralized manner, hospitals face difficulties in sharing it with other medical workers or establishments.
The benefits of implementing blockchain technology in the medical industry are obvious, as it allows the development of a medical ecosystem in which:
- records are kept safely and securely
- easy access to information is provided
- all types of forgery are avoided
- payments are processed quickly and privately
Investing in healthcare startups will help increase better outcomes for patients and simplify access to medical data. Consider the TOP 5 ICOs that boost healthcare efficiency!
Education
Investing in education startups is very promising in terms of providing better solutions for young people. In order to make our lives prosperous, it is crucial to have a quality education. The field of science is no longer relying solely upon the old methods of learning. Instead, it uses various platforms to provide self-sufficiency via e-learning, promote educational projects, and allow participation in all types of specialized bootcamps. In this new era of learning, ICO developers are using the advantages of blockchain to offer new solutions to the generation of technical competence.
Blockchain stimulates the system of knowledge and rewards, generates trustworthy credentials, and keeps records safe and accessible. Student/teacher/professor/parent/school cooperation is much simplified and better-managed!
If you’re interested in investing in education, don’t forget to have a look at the TOP 3 EdTech ICOs.
Artificial Intelligence (AI)
Artificial Intelligence (AI) is also a significant industry in modern society, the efficiency of which is closely dependent upon blockchain applications.
With the rapid development of all technical spheres and industries, global technology appears to be a crucial driver of process. Artificial intelligence, or machine learning, performs various tasks that eliminate human error and increase work-process productivity. It is possible to create a working environment or an ecosystem for businesses or entrepreneurs in which certain functions are performed automatically, thereby saving time and human effort.
Applying blockchain to AI:
Investing in AI startups opens new opportunities and finds solutions to existing issues in work processes. With the help of AI, it is possible to automate up to 25% of job-based tasks. Estimates predict that by 2050, machines will reach the human level of intelligence.
Don’t forget to have a look at TOP ICOs in the field of AI.
It is apparent that there are numerous ways to answer the question “How should I invest in blockchain?” The hype around cryptocurrencies is fading — opinions vary, though! Consider investing not only in digital currencies, but also in promising startups and projects launched in different industries, for they are valuable, too. The industries we’ve mentioned are just a few examples, so don’t limit yourself. Research the topic you’re most interested in!
Don’t hesitate to contact the team of experts at Applicature if you have any questions!
Applicature has entered into a partnership with the VC firm Mempool.ventures
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Blockchain Technologies (blockchaintechnologies.com)
Blockchain Technologies is a huge static content website that covers practically every single question you might have about blockchain. Additionally, the site also has a news section where stories from the largest cryptocurrency news blogs are gathered.
I added this site to this list of the 27 best cryptocurrency blogs for three main reasons. The first is that the content is absolutely amazing. It is very obvious that the writer spent A LOT of time researching about cryptocurrencies. Secondly, the UI of the website is astonishing. The colors are very well picked, the site charges in the blink of an eye and it is completely responsive. And finally, although the Blockchain Technologies blog has a couple Ads, it is very clear that the main objective of the site is to inform, and not to just make money with visitors.