Blockchain technology isn’t just for cryptocurrency.
Are you bored with your portfolio? Maybe you’re just ready to take on a new challenge. The emerging fintech sector may be what you are looking for. Along with fintech comes this new phenomenon known as blockchain technology. Blockchain technology is spreading like wildfire, making its way through the business world, the banking community, and so much more. It is settling in and beginning to play an integral part in not only our financial lives, but other aspects as well.
If you want to be a part of the “next big thing,” investing in blockchain can do that for you.
With a new wave of financial technology came the world of cryptocurrency. This digital money has proven to be a polarizing topic, discussed in length across all industries. Whether it’s about the fluctuating Bitcoin market or what you can even do with your Bitcoin, people are talking about it. One of the biggest draws to cryptocurrencies is the decentralization aspect of the money. There isn’t one governing entity. Instead, the people that use this peer-to-peer system of money are in charge of monitoring it. This is where blockchain comes from.
As you will see, blockchain technology goes beyond cryptocurrencies.
What is Blockchain Technology?
Blockchain is the digital, public ledger where cryptocurrencies occur. Through a blockchain, everyone in the network can see every account balance. Every transaction includes a file with a sender, recipient public key, and the number of coins involved in the transaction. The transaction is sent with a private key by the sender in the form of cryptography.
A blockchain is decentralized and is constantly growing with completed blocks. The most recent transaction is added in chronological order, which allows the blockchain participants to keep track of the transactions without central recordkeeping.
Blockchain was created by the same developer who invested Bitcoin in 2008. Since the creation of cryptocurrencies, while the digital money may not be embraced by everyone, blockchain technology has grown in popularity, along with many other financial technology innovations.
Blockchain can be utilized to maintain the various tasks that are involved in accounting, including tax code, managing business operations, and the demand for precision and accuracy. With blockchain technology, transparency gives visibility to all transactions for approved users. This can lower the workload for an auditor.
In the world of advertising and marketing, blockchain can help reduce “click fraud”, making sure marketing executives reach their target markets. Human resources can use blockchain to quickly verify credentials of job candidates and existing employees.
Information technology and cybersecurity can use blockchain technology to revolutionize the market by keeping track of digital interactions in a transparent and secure.
Investing in Blockchain
As you can tell, blockchain is sweeping the globe and many well-known companies have jumped on the bandwagon by incorporating it into their practices. There is so much buzz around blockchain in the financial press, making investment opportunities more attractive. By 2024, it is predicted that the blockchain market will grow to over $60 billion. More and more companies are adopting distributed ledger technology.
While the technology is just beginning to be developed, big companies are jumping on the opportunity today. In 2015, FinTech company R3 joined with nine financial companies, Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, Goldman Sachs, JP Morgan, RBS, State Street, and UBS, to invest in blockchain. Soon after, thirteen others joined.
Many large banks have begun to seek out blockchain technology, striking partnerships with major technology vendors and even smaller startups. Blockchain technology has the potential to cut banks’ infrastructure costs by $20 billion a year by 2022. This includes banks such as Bank of America, Bank of England, The Royal Bank of Scotland, HSBC, and more.
Another way to invest in blockchain technology may the most obvious, cryptocurrency. Digital money uses blockchain technology to keep the coins decentralized. Some experts believe that during this surge in blockchain interest is the best time to collect popular cryptocurrencies, like Bitcoin.
Companies that are developing all over the world that are beginning to utilize blockchain technology, such as Gameflip and Buddy. Gameflip is a company that was developed in Silicon Valley. It’s an online marketplace that allows gamers to transact digital goods and has 3 million members. Buddy is an app store for developers where programmers build world-altering blockchain technology and off-chain apps and services. Buddy can be seen in marketplaces like Amazon, Google, and Github.
These are just some of the examples of how blockchain is being used all over the financial and business world. Keep an eye out. You may soon see it in more places and you don’t want to be left behind.
Here are just a few more companies, both new and established, working on blockchain technologies:
- Celsius Network
- Menlo One
- DACC- World’s first content-based blockchain.
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards Fintech.
Looking beyond blockchains, we are seeing technology have a hand in simple things such as payment and holding money, and more complex life aspects like investment advising. Some companies are even developing ways artificial intelligence can assist in hedge fund managing!
If you are ready to make the leap into the world of fintech, Alpen Partners can help. Alpen Partners Wealth Management International AG, the sister company of Alpen Partners Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.