Just like your search engine is not internet, cryptocurrencies are not blockchain. Bitcoin is simply the first and currently the most famous example of how you can implement blockchain technology, but the possibilities of blockchain technology in general are very broad.
And as much as traders love the volatility of Bitcoin, investors are not necessarily too crazy about it. Even if you hold Bitcoin and maybe a dozen altcoins, it wouldn’t hurt to have something a little less risky and at the same time blockchain-related.
Luckily, there are ways to invest in blockchain without buying any Bitcoin and still keep it as stable as possible. However, you need to remember two things: no investment can be one hundred percent risk-free and you won’t be investing in exclusively blockchain companies.
You have to keep in mind that most of the companies we’re going to mention further make their fortunes by participating in other businesses, and blockchain is only one of many tools that these companies use.
If that doesn’t bother you, then keep on reading.
Companies Adopting Blockchain
One industry that can definitely benefit from applying blockchain tech, is the shipment tracking and logistics industry. The blockchain-based solution can help with identifying the origins of physical goods and can be used to track anything you can think of from food in your local supermarkets to online purchases and art pieces.
FedEx and Co
According to the research of Gratner Inc., by 2023 blockchain tech will be playing a major role in the $2 trillion industry of global shipment and tracking. But in order for that to happen, industry leaders and international companies should help with adopting the technology. One noteworthy organization that is working on establishing common standards for implementing blockchain tech is The Blockchain in Transport Alliance, and FedEx is one of its 500 members.
And FedEx is not the only courier service company that has started exploring the potential of blockchain tech. Their closest competitors, UPS and DHL Express, are also looking in the same direction and in fact, partnered up to speed up the adoption process.
So if you’re put off by the wildness of crypto volatility, get a FedEx, UPS, or DHL stock instead.
But not only logistics companies can benefit from implementing blockchain solutions. When it comes to fast international payments, the banking sphere could also use a little improvement.
In 2015, despite initial doubts, JPMorgan established a division that started exploring the possibilities of blockchain tech. After studying the existing blockchains, the bank’s team quickly figured out that they need to build their own private chain and came up with Juno, a pilot version.
The initiative seemed to have an effect, the division was renamed to Blockchain Center of Excellence and the new Ethereum-based blockchain Quorum was created. By implementing blockchain solutions, the bank strives to reduce friction in international payments and improve processing times.
Moreover, JPMorgan has recently launched its Interbank Information Network, a solution that will allow banks to verify payments in real-time. At the moment of writing, around 365 banks signed up for this initiative including Singaporean OCBC and Deutsche Bank.
By buying JPMorgan’s stock, you won’t be investing in blockchain directly, but you will still be supporting a blockchain-inspired establishment.
Technology giants are quickly catching up with blockchain too, so if you’re more of a techie, you may consider investing in one of the following.
Microsoft took its time while adopting blockchain technology. First, the company created its blockchain development kit and the Azure Blockchain Workbench. Then they announced launching Azure Blockchain Services, a service that allows for the formation, management, and governance of blockchain networks.
In other words, this solution helps companies easily build blockchain-based applications and offers tools for various scenarios such as adding new members, setting permissions, and monitoring the network.
Interestingly enough, one of Microsoft’s first collaborations was with JPMorgan in order to integrate Quorum. Azure CTO Mark Russinovich comments on it as follows:
“Because it’s built on the popular Ethereum protocol, which has the world’s largest blockchain developer community, Quorum is a natural choice. It integrates with a rich set of open-source tools while also supporting confidential transactions—something our enterprise customers require.”
Keeping pace with Microsoft, IBM created a blockchain platform based on Hyperledger Fabric and partnered with major companies like Walmart and Aetna to test and develop its blockchain solutions.
By cooperating with not only separate companies, but also industry leaders, the IBM blockchain has a bigger goal in mind. While using the IBM Blockchain Platform in food supply, customers can easily connect farmers, distributors, processors, and retailers and experience the capabilities of an accessible and open data ledger. Apart from food supply, other industries like health, education, defense, banking, and many others have started adopting the new technology through the use of IBM Blockchain Platform.
Finally, if you’re still not sure with what equity you should go with, there is another interesting solution that might be a good alternative.
Exchange-Traded Funds, or ETF, is a type of security that allows you to buy a basket of securities like stocks minus the necessity of buying each item separately.
As for blockchain ETFs, those are funds that invest in companies that encourage the development and practical implementation of blockchain technology or funds that track the performance of Bitcoin and other crypto via futures contracts or by holding the underlying crypto-assets.
Investing in blockchain without buying cryptocurrencies is a tricky, but still doable task. Whether you invest in companies that already actively implement blockchain tech in real-life by buying stocks or decide to go with blockchain ETFs, you need to keep in mind one universal rule. There is no such thing as risk-free investment.
And in the case that you come to terms with crypto volatility and decide to give crypto a try, Lumi Wallet is at your service.