Why Investing in Blockchain Technology?

As a new way to underpin financial transactions without relying on banks and governments, blockchain has come a long way since 2008. While the first phase of the tech saw primarily currency-based solutions, now firms are working hard at adapting the technology to solve a host of problems across industries.

This wider adoption of blockchain solutions presents a whole new range of investment opportunities. The potential gains from investing in a company or technology at the early stages might leave you asking, ‘How should I invest in blockchain technology?’

Below, you can see the list of the industries making the greatest use of blockchain so far along with promising blockchain companies.

Blockchain and its Use Cases

Originally, blockchain was created to facilitate secure and transparent financial transactions with bitcoin (BTC) and subsequent altcoins. Over time, blockchain developers realized that the benefits of the technology reach far behind currency and transactions and can be used to improve everyday work processes in a number of industries.

Some of the key advantages of blockchain technology are:

• Transparency
• Security
• Efficiency
• Trust
• Interoperability

The above benefits can lower operating costs for companies, thus increasing profit margins and making money for both companies and investors.

Many blockchain-based companies create solutions that will transform how whole industries work. Picking the right one now can lead to substantial returns on your investment.

Investment Opportunities by Industries

Fintech

The financial sector is where blockchain got its start. It promises increased efficiency, reduced transaction costs, better data security, and enhanced productivity. A recent report estimated that 77% of fintech companies are expected to implement blockchain solutions by 2020.

Investing in the right fintech startup can yield an incredible return as more widespread adoption of the technology continues. Banks spent $1.7 billion on blockchain in 2017, a 67% increase over the previous year.

Some top fintech blockchain startups include BitPesa, Circle, BitPay, TenX, Swissborg, and Lendo.

Supply Chain

Dealing in global movement of goods, services, and raw materials, the supply chain industry is especially suited to benefit from adopting blockchain. Information about each leg of a product’s journey from a raw material to a retail shelf can be stored on a blockchain.

It’s clear that this can reduce human error and eliminate waste due to outdated information. It also protects against fraud and theft, and increases the accuracy of shipment tracking industry-wide. These efficiencies can produce cost savings all throughout the chain, increasing profits.

The ‘marriage’ of blockchain and supply chain is so promising that 53% of companies in a recent global survey said they were working on a solution of their own — more than any other business segment.

Some key startups developing blockchain supply chain solutions include VeChain (VET), Waltonchain (WTC), Ambrosus (AMB), OriginTrail (TRAC), and WaBi (WABI).

Health and Pharmaceuticals

Critical concerns in the healthcare industry are surely things like privacy, ease of data access, and trust between doctors, patients, and insurance companies. In 2018, five of the USA’s largest healthcare companies partnered to develop new blockchain solutions.

Forgery and insurance fraud can be greatly reduced, and payment processing will be done quickly and efficiently. This means considerable savings and increased profits. Understanding the administrative log jam that currently plagues the industry makes the case for big gains for investors in this field.

Several key blockchain startups to consider in the healthcare industry include NebulaGenomics, Doc.AI, Iyro, Patientory, Guardtime, and Gem.

AI, Machine Learning, and Big Data

By eliminating errors and increasing productivity in these cutting-edge fields, blockchain will exponentially increase the speed of their development. Automatic processes underpinned by blockchain systems will dramatically improve the effectiveness of these solutions.

Using AI and machine learning, experts believe it’s possible to automate up to 25% of current job tasks. Further estimates show that by 2050, machines will be able to match human levels of intelligence. Investment in blockchain-based AI startups will help to speed up the implementation of these solutions, eliminating inefficiencies in current workflows.

Some of the top companies applying blockchain in the AI field include Enigma, Numerai, Datum, NuCypher, and Ocean.

The Future is Bright

As you can see, investing in the fledgling blockchain industry is a great opportunity. It’s rare that a new technology holds so much promise this early in its life cycle. 

With the transforming power of emerging blockchain technology and its ability to innovate and optimize almost any industry, not only can these investments be lucrative but also widely beneficial.