How to Invest in Blockchain Technology
With the growth of blockchain technology, it is becoming more and more attractive to investors seeking help in developing their technologies with a range of enhanced solutions. Moreover, blockchain is beneficial for businesses in any sphere.
In fact, blockchain technology was designed specifically as a platform for secure and transparent money transfer. Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) were created as a pathway for money adoption on the blockchain. Investors and developers alike recognize that the advantages of blockchain technology have contributed to its implementation in everyday activities by way of e-governance and data storage.
Anybody dealing with money, supplies, or other assets can invest in blockchain for secure, transparent transactions.
Let’s look at an overview of the main advantages of blockchain technology:
Because of the fact that there is no regulating party on the blockchain, every user is equal. This eliminates monopolization. Additionally, every node stores a complete ledger of transactions, which justifies transparency on the blockchain.
How to Implement Blockchain
The field at the top of blockchain technology usage is, obviously, cryptocurrency. When you buy any crypto coin, you are directly investing in blockchain technology.
Judging from the history of the blockchain and the people who earned an enormously high profit from buying it before its price started skyrocketing, cryptocurrency investments can definitely help you raise capital.
According to data posted on CoinMarketCap, capitalization of the cryptocurrency market stands on approximately $354 billion.
It is worth mentioning that purchasing coins has become less popular due to the appearance of ICOs on the blockchain. ICO projects promise more than just growing capital; they also provide innovative solutions for certain industries.
Blockchain technology can be implemented in the following spheres:
- data storage and security
- government and voting
- legal and law enforcement
- marketing and media
- logistics and supply chains
The following image shows the benefits offered by blockchain:
The huge number of use cases indicates how much blockchain technology can contribute to businesses all over the world.
The amount of money invested in blockchain technology has drastically risen since 2004, and $400 million in investments is predicted by the end of 2019. Consequently, investors are looking for more ways to contribute their personal assets to blockchain development.
The Most Beneficial Ways to Invest in Blockchain
Because cryptocurrencies run the blockchain, they have been the most popular way of investing in blockchain until recent times. Currently, blockchain-based startup investments are gathering the biggest financial segment within the blockchain sector.
Due to the fact that raising money on IPOs requires having started a company and having the product already developed, it becomes much easier to get investments when launching an ICO. Correspondingly, the ICO market is full of scam projects. That is why it is essential to conduct market research in order to avoid double-crossing.
In order to determine a trustworthy project to invest in, one should check ICO rating websites with predictions and expert reviews. Also, reading blockchain and ICO-related blogs and forums would be helpful.
An ICO project that deserves your trust as an investor should at least have a white paper uploaded to the project’s website. From the documentation, you need answers to the following questions:
- What is the idea behind the project?
- Why is it innovative?
- How does the team see the project developing in the future?
Additionally, ICO documentation should mention technical aspects to show that the product is, indeed, innovative and capable of solving issues.
One more important thing to consider is the industry for which the blockchain company is offering its solution. Let’s examine the main spheres that use blockchain technology for business optimization.
The financial sphere is developing swiftly, and is closely connected to day-to-day money processing and investments as well as selling and buying. In order to follow current technical innovations, FinTech is actively implementing e-commerce and online banking. Among companies dealing with financial transactions, blockchain-based startups take the greatest advantage of market conditions. Recent FinTech research uncovered the intention of over 77% of the companies to implement blockchain technology in order to optimize workflow.
There are several reasons for blockchain adoption in the financial sphere:
- scalable, secure transactions
- immutable data transfer
- Elimination of double-spending
- third-party cutout
By investing in blockchain-based start-ups in the financial sphere, you are taking steps toward improving services and activities in the industry.
Here is a list of the best ICOs in finance.
Among the industries actively adopting blockchain technology at the present time, the supply chain sphere is most in need of transparency and scalability.
Blockchain offers storage of transaction history on the open ledger, keeping records of:
- product origin
- Supplier information
- product storage details
Investing in the supply-chain industry will eliminate human-factor mistakes, delivery delays, and the risk of fraud. Moreover, it will improve management and build trusting relations between parties.
Here you will find the most trustworthy startups in the supply-chain industry.
At the moment, the medical sphere is facing a lack of trust between doctors, patients, and companies providing insurance.
Blockchain holds several solutions for the medical ecosystem:
- secure health records
- easily-accessible information
- no possibility for any type of fraud or forgery
- Fast, safe transactions
By attracting investment in the healthcare industry, the entire workflow of the medical ecosystem will be improved, making health records more secure and transparent.
Here you will find a list of the most promising blockchain-based ICOs in healthcare.
Machine learning and artificial intelligence industry requires the absolute elimination of human error along with maximization of productivity.
The following image illustrates the whole spectrum of benefits offered by blockchain technology to the AI industry:
By implementing blockchain technology in machine learning, investors will make great headway in solving existing issues. In fact, according to predictions, by 2050, machines will perform on the human level. With blockchain solutions, this process will be enhanced and speeded up.
All in all, a variety of industries will require blockchain implementation in order to solve the problems currently impacting and holding back market development.