How to Invest in Blockchain Technology?

Digital currency (or popularly known as cryptocurrency) has become a safe-haven investment today. It all started with bitcoin, which was created in 2009 and still ranks first in the list. There has been a rapid increase of cryptocurrencies in the past decade and at present, more than 2,322 cryptocurrencies being traded in the crypto sphere.  

But how do cryptocurrencies work? Cryptocurrencies make use of decentralized technology to make secure payments and store money without the need of a third party and revelation of personal information. Cryptocurrencies run on a distributed public ledger called Blockchain which maintains a record of all transactions done. 

This article will walk you through the history of blockchain, how does it work and how to invest in blockchain technology and become a part of it.

History of Blockchain

Blockchain first emerged in the year 2008 at times of financial crisis. The first blockchain was conceived by an anonymous person (or group of people) known as Satoshi Nakamoto. Just when the paper was published on ‘Bitcoin: A peer-to-peer electronic cash system’, the blockchain technology followed it. Nakamoto designed the technology using a Hashcash-like method to timestamp blocks without the need to be signed by a trusted party.

By 2014, more and more websites started to accept blockchain currencies with investors funding the digital currency startups. Today, blockchain technology has become one of the biggest ground-breaking technologies having the potential to affect every single sector from financial to educational institutions and much more.

How does Blockchain work?

Since it is distributed, Blockchain is managed by a peer-to-peer (p2p) network working together simultaneously to solve complex mathematical problems to confirm the building of new blocks. 

Once recorded, the information in the blocks cannot be updated without changing all subsequent blocks. Further, this requires confirmation by the majority in the network. This functionality makes blockchain technology secure and insusceptible to hack.

What makes Blockchain so valuable?

Before you rush recklessly to invest in blockchain technology, consider the following benefits of Blockchain:

• The integrity of data; Data cannot be altered and each of the computers carries the entire network.

• Security; The technology follows cryptographic rules and regulations which prevent tampering.

• Smart contracts; Variety of transaction types within users.

• No involvement of a middleman or third party.

• Transparency; All transactions are visible to the entire network.

• Low fraud; Network is built through a shared consensus.

How to Invest in Blockchain?

Now, you are familiar with blockchain and its related aspects, take a look at the different methods on how you can invest in blockchain.

• Cryptocurrencies 

Cryptocurrencies are an apparent way to invest in the blockchain. Your cryptocurrency cannot exist without a blockchain. Blockchain works as a network you are investing in. On the whole, buying cryptocurrencies is the most simple option to invest in cryptocurrencies.

The three most popularly invested cryptocurrencies are Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). All you need to do is open an account at a leading exchange (Coinbase or Binance), transfer funds to exchange from your bank account and purchase your favorite cryptocurrencies.

• Stocks

Many companies are trying their hand in stocks and investing heavily in the blockchain technology. They are one of the most common places to begin with blockchain investments.

The main challenge is to pick the company that places a significant portion of its business around blockchain technology. Some of the best companies you can consider are IBM, 360 Blockchain Inc, Overstock, Nvidia, Microsoft, Ubiquity and Hive Blockchain Technologies.

• Startups

The last but not the least method of investing in Blockchain is Startups. Numerous startups are putting forward innovative ideas and goals using blockchain as underlying technologies. One can invest their money on startups which are centered around the blockchain technology. A popular example of a blockchain-based startup is Basic Attention Token (BAT).

Final Thoughts

The blockchain technology is still fresh and more and more firms are trying their best to implement the technology. You may term Blockchain as a stable investment in the technology.

Blockchain technology has the capability to create something extraordinary and can transform the way companies operate.

If you are about to decode on how to invest in blockchain technology, go through this blog. Other than the ones mentioned, there are many other ways you can invest in blockchain. All in all, kindly do thorough research before you make a final decision.