Top 10 Blockchain Investments in 2019

January 28, 2019

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Blockchain – Noun. “A blockchain is an ever-growing list of records known as blocks that are linked together and secured using cryptography. Blockchains can form the basis of a distributed ledger in a peer-to-peer network.”

The History of Blockchain

The idea of a blockchain was first posited by Satoshi Nakamoto in the 2008 whitepaper, Bitcoin: A Peer to Peer Electronic Cash System. Forming the basis of Bitcoin (BTC), blockchains have now evolved and are no longer simply used to process financial transactions.

Why Blockchain Started

The concept of a blockchain was devised in an effort to provide a digital network that not only stores information in a secure way but a transparent one. By storing information in blocks protected by cryptographic hashes, blockchains provide the answer to digital trust issues by creating a public database that no single power/person can alter.

“Blockchain is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one,” Sally Davies, FT Technology reporter.

After the Bitcoin blockchain went live in 2009, developers started to think of ways to improve it. With Proof of Work (PoW) secure but inefficient, Proof of Stake (PoS) protocols were hypothesized in 2011. Offering a trust-based way of processing transactions rather than the traditional mining model, the first POS blockchain went live in 2012 with Peercoin.

By 2013 Vitalik Buterin became frustrated by the limitations of Bitcoin and started work on Ethereum. Essentially a more malleable blockchain that uses smart contracts to handle more than currency-based transactions, Ethereum (ETC) eventually went live in 2015.

Today, new blockchains are being developed all the time and the challenge for many developers is how to link them in a productive way. Indeed, with 15% of financial institutions researching blockchains as of 2018, thanks in part to Ripple and XRP, the long-term applications of blockchains are potentially limitless.

Notable Supporters of Blockchains

Over the years, a number of high-profile entrepreneurs have espoused the benefits of blockchains. Among those championing the decentralized technology are…

Bill Gates: Through his company Microsoft, Gates has created a virtual space known as Azure where developers can deploy secure blockchain applications.
Richard Branson: As well as investing in Bitcoin, Branson has shares in a company called Blockchain
Jeff Bezos: Through the Amazon Web Services (AWS), Bezos is championing the blockchain-as-a-service model by allowing developers to create their own blockchain apps via his platform.

Top 10 Blockchain Developments to Invest in 2019

Which blockchain companies should you invest in? Sashkin – Shutterstock

2019 is set to be another busy year in the blockchain world. To help you find the best blockchain investments for the coming year, we’ve listed some of the leading developers and thinkers in the industry:

IBM: IBM has always been active in the blockchain space and currently has 500 active projects under its watch. As well as being a perennial player in the blockchain space, IBM is currently working on off-chain technology via the cloud-based IBM Operational Decision Manager. With off-chain solutions a hot topic for 2019, this could make IBM a solid investment option.

Peer Mountain: Designed to connect self-sovereign ID holders with businesses, Peer Mountain provides a way of putting people in control of their protected personal information. What’s more, it pays ID verifiers for their trustworthiness. The end result is a blockchain that provides businesses with an instant, cost-effective regulatory compliance platform.

DFINITY: Branding itself as an “Internet Computer”, DFINITY is backed by a number of major investors and is aiming to create a highly scalable network for private and public blockchains. In essence, DFINITY wants to create a secure ecosystem on which all blockchains can live. This, in turn, would make it the go-to platform for all blockchain companies.

Cosmos: A multi-chain framework, Cosmos is one of the companies aiming to bring blockchains together. Integration and cross-chain communication are among the industry’s main goals in 2019 and Cosmos is part of this push to link blockchains.

Chainfrog: Based in Finland, Chainfrog was launched in 2016 and is now using its expertise to guide and support international companies. Creating Chainfrog.tech in 2018, the company now has an agency that will provide blockchain services to third-party clients.

Liquidity.Network: The Lightning Network is being touted by many experts as the best way to speed up blockchain transactions. Working on the same basis, Liquidity Network is an off-chain solution devised by Imperial College professor Arthur Gervais. In his mind, we only need an automated blockchain solution to handle transactions we disagree on. In other words, the crypto technology is more of a mediator. Therefore, we can use off-chain platforms to process simple transactions which will free-up blockchains to handle the complex stuff.

DLA Piper: According to Forrester Principal analyst Martha Bennett, the idea that blockchains are 80% business and 20% technology is on the low side. In her mind, companies need to focus more on the business of blockchains in order for the technology to thrive. One company that’s working to tidy-up the “business” of blockchains is legal firm DLA Piper. Investing in companies that are building an infrastructure around blockchains is a wise idea.

Walmart: As a company, Walmart has always been a great investment. However, with news that it’s now working with Sam’s Club to harness the benefits of blockchains, this could be one for crypto fans to monitor. Indeed, with the retailer requiring its produce suppliers to trace their products using blockchain technology, Walmart could soon become one of the biggest players in the sector.

VeriBlock: A company that uses the proof-of-proof (PoP) concept to secure altcoins is now responsible for almost 20% of daily Bitcoin transactions. VeriBlock’s aim is to protect altcoins that have security issues due to the low rewards offered for mining compared to Bitcoin. Based on this and the fact it’s now a major player on the BTC blockchain, it’s worth considering as an investment.

The Seed Token Project: Alongside blockchains, artificial intelligence (AI) is the other major growth sector for tech. The Seed Token Project is aiming to connect these two areas in order to create a decentralized marketplace for developers. Although marketplace projects are fairly common these days, this one is attractive because it focuses on AI.

Why Invest in Blockchain Developments

Should you invest in blockchain projects? Well, as with all emerging technologies, there are pros and cons:

Pros

Blockchain investments are less volatile than crypto investments because the technology is fundamental to the survival of BTC and other cryptocurrencies.

While many will debate the future of digital currencies, it’s almost universally agreed that blockchains are here to stay.

Blockchains are confined to one idea. A cryptocurrency or crypto project tends to focus on one industry or area (i.e. BTC is a digital currency). Blockchains can be used to process data for virtually anything. Therefore, they’re not as susceptible to fads.

Cons

The road to making blockchains commercially viable mainstream products is a long and winding one. Therefore, all investments may take time to reap any rewards.

Perhaps the biggest issue with investing in blockchain companies is the lack of cohesion within the industry. Currently, there are many different ideas about how to improve blockchains. Without a lack of clear direction, it’s hard to know exactly which projects will be successful.

How to Invest in Blockchain Developments

blockchain investments 2019 — Invest in blockchain technology. NicoElNino – Shutterstock

Investing in blockchain projects can be done in two ways. The first way is to buy shares in a company that’s already active in the space. For example, we’ve noted that IBM is extremely active in the space. Therefore, if you invest in IBM shares, you could benefit from a blockchain boom.

The second way to join the mix is via an initial coin offering (ICO). Similar to crypto ICOs, these token sales allow you to buy a fundamental asset on the blockchain which, in turn, funds the project and gives you a stake in its future.