Though Bitcoin and its volatile price swings tend to hog the headlines, most will agree it's blockchain technology that's the true disruptor. Blockchain acts as a decentralized ledger, recording all data simultaneously across all nodes on its network. Ratings agency Moody’s reports blockchain will transform and disrupt myriad industries. It expects the technology will pose a potential long-term competitive threat to a variety of business sectors—eventually.
Shmulik Grizim, the founder of LeadCoin believes blockchain has the potential to disrupt a variety of industries, in particular web marketing:
“For example, web marketing is an extremely centralized industry dominated by the Google (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) duopoly. A decentralized web marketing solution that's based on blockchain technology could shift the power back to the hands of the businesses themselves allowing for trusted and secured transactions between two anonymous parties without any middleman.”
He foresees numerous changes occurring via blockchain to a growing number of centralized industries including banking, data storage and supply chain management.
Still, though it's relatively easy—albeit potentially expensive—to invest in at least some blockchain based cryptocurrencies, there are a growing number of ways to invest in, and even profit from blockchain technology without owning any digital currencies. From publicly traded mega caps to fledgling start-ups, as well as two ETFs, the following 11 alternatives could be appropriate vehicles if you don't feel up to weathering the extreme volatility recently seen in crypto markets:
1. Eastman Kodak
The once seemingly impregnable photography giant has experienced some rough years recently along with a slide toward obscurity as the photo industry moved beyond paper and chemistry and toward digital technology. Kodak (NYSE:KODK) missed that boat and shares have been sinking for years on lower growth and diminished profitability.
However, shares of the company spiked on January 10 after the company announced on January 9 it planned to launch its own form of blockchain technology which it dubbed “KodakCoin,” for use by photographers to help protect their image copyrights. Though some saw it as a potentially canny way for the faded giant to regain some of its luster and positioning, others see it as something of a sham. Nevertheless, the idea has merit. It will likely depend on the eventual product and how Kodak handles it.
2. IBM
The computing giant's blockchain as a service platform (BaaS) is being marketed by the tech behemoth as a service designed to accelerate the development, governance and operation of any multi-institution business network. Though still relatively new, a recent partnership with Unilever (NYSE:UL), the world's second largest advertiser, calls for IBM's (NYSE:IBM) business strategy unit to create a blockchain solution to simplify Unilever's digital ad supply chain and provide more transparency as a way of increasing trust with consumers. Similarly, Agility, a third party logistics provider has joined IBM and global container shipping firm Maersk's (OTC:AMKBY) collaboration to build a global trading platform predicated on blockchain technology.
3. Microsoft
The megacap technology giant is working to scale blockchain for a distributed ID scheme. Microsoft's (NASDAQ:MSFT) Identity Division has announced that over the past 12 months the firm has been incubating a set of ideas for using blockchain (and other distributed ledger technologies) to create new types of digital identities.
4. Ubitquity
Ubitquity LLC, a privately held, Delaware-based firm has been using blockchain to track property records and deeds as well as transfer their ownership with its blockchain SaaS (Software-as-a-Service) platform. Its first property ownership transfer via blockchain was recorded in 2016. Since then a growing number of real estate firms and more recently city governments have been using blockchain technology for registering, monitoring and enabling property transfers.
5. CryptoBnB
This AirBnB-type startup uses blockchain technology to match homeowners with vacation renters. Earlier this week they announced a partnership with WTC, Japan's largest travel agency, which should boost the uptake of CryptoBnB's CKey token, potentially enabling it to become the first hospitality utility token used across global rental platforms.
6. Kryptonite 1
Formerly known as Guild Acquisitions, then rebranded Kryptonite 1 but more recently referred to as KP1, this blockchain investment company focuses on early stage projects and blockchain-based digital assets. It's publicly traded via London's NEX exchange. According to the company's website there are currently 103,099,702 shares outstanding.
7. Big Wind Capital
In late December, Big Wind Capital (OTC: BGGWF) announced it had entered into an agreement with Hill Top Security, which operates in the blockchain sector and is focuses on finding and eliminating military-grade cyber threats. The groups have inked their deal in order to introduce major blockchain advancements in security and cryptocurrency.
8. HIVE Blockchain Technologies
HIVE Blockchain Technologies (OTC:HVBTF) owns multiple cryptocurrency mining facilities globally including a successful facility in Iceland. In mid-December 2017 HIVE announced it was expanding its digital currency mining operations in Sweden during 2018. As well, HIVE will be receiving another round of funding from a syndicate led by GMP Securities and Eventus Capital. Though the infusion hasn't been fully set, it could amount to up to $100 million in financing. The Canada-based company currently mines seven cryptocurrencies including Bitcoin, Ethereum, Litecoin and Monero.
9. Bankorus
Private wealth management platform Bankorus markets itself as a new paradigm for high net worth individuals whose capital is tied up in illiquid assets. The company says it applies AI and blockchain technology to crypto investing in order to help these individuals move their assets into the digital environment. Gregory Van den Bergh, co-founder and chief executive officer explains that blockchain provides a huge possibility for asset and security tokens which back real world assets, such as real estate, investment funds, or art. Bankorus says it handles a combined AUM of $30B with more than 200,000 of the world’s wealthiest clients across China, Europe, and the US. It has offices from Beijing to London.
10. - 11. Blockchain ETFs
Newly launched ETFs Reality Shares Nasdaq NexGen Economy Fund (NASDAQ:BLCN) and Amplify Transformational Data Sharing Fund (NYSE:BLOK) are worth considering, though shares of both don't directly correlate to cryptocurrency price moves. Of course, for some more risk-averse investors that may be the biggest selling point for these funds.
BLCN tracks an index it created "comprised of companies committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their proprietary use or for use by others." Among its top 10 holdings, by weighting are Intel Corp. (NASDAQ:INTC), IBM, Cisco (NASDAQ:CSCO), Microsoft and HIVE Blockchain.
BLOK calls itself "an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equities of companies actively involved in the development of and utilization of transformational data sharing technologies." Some of BLOK's top 10 holdings by weighting include Taiwan Semiconductor (NYSE:TSM), NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and HIVE.