What Is A Blockchain Stocks – Blockchain is a distributed ledger technology that uses a decentralized record-keeping approach. For instance, a bank may keep track of payment transactions on its systems, but blockchain technology enables the establishment of a permanent public ledger that is open to all users. Blockchain ledgers may be used anonymously to safeguard user privacy and are a particularly secure way to store data since they cannot be changed in the past.
It’s important to remember that blockchain and cryptocurrency are two separate entities. Blockchain is the technology that houses cryptocurrencies, and It has a wide range of other uses unrelated to Bitcoin or other virtual currencies.
What Is A Blockchain Stocks?
Blockchain stocks are the standard stock market of businesses using blockchain technology. Blockchain firms are not actually cryptocurrency companies, even though ETFs are available that directly follow the price of the digital currencies Bitcoin (BTC) and Ethereum (ETH). Instead, they provide goods that make use of blockchains in some way.
NVIDIA GPUs, for instance, are frequently utilized in cryptocurrency mining. People may purchase and trade Bitcoin using Square’s Cash App. Clients may administer their blockchain platforms using Amazon’s AWS cloud computing service, while IBM is utilizing blockchains to assist customers in creating supply chains (see IBM Blockchain) (see Amazon Managed Blockchain).
Examples of Blockchain Stocks
Numerous publicly listed firms currently use blockchain in their business operations, provide consumers with blockchain-related services, or are involved in the cryptocurrency market. While some people are interested in blockchain technology and cryptocurrencies, others employ blockchain-related goods and services to enhance already profitable ventures.
Here is a list of blockchain firms to consider if you want to include exposure to this innovative technology in your stock portfolio.
General Blockchain Stocks
The most well-known publicly traded companies that use or collaborate with blockchain technology include:
- Nvidia (sells GPUs to cryptocurrency miners)
- Intel (offers blockchain services)
- IBM (offers blockchain services)
- Amazon (offers Amazon Managed Blockchain service)
- AMD (sells GPUs to cryptocurrency miners)
- Mastercard (working on blockchain-based cross-border payments with R3)
- Honeywell (using blockchain to track sales)
- Silvergate (offers banking services to blockchain and cryptocurrency firms)
- DocuSign (offers blockchain service)
- JPMorgan (created its cryptocurrency, JPM Coin, and its unit for blockchain projects)
- Canaan (manufactures mining hardware)
Cryptocurrencies Blockchain Stocks
As an alternative, some publicly listed businesses provide services connected to cryptocurrencies or have direct exposure to them:
- Intercontinental exchange (operates Bakkt cryptocurrency exchange)
- Trust Bitcoin in Grayscale (operates a bitcoin investment fund)
- Block (offers bitcoin payment service, also holds bitcoin)
- PayPal (offers a bitcoin payment service)
- Trust Ethereum in Grayscale (operates an ethereum investment fund)
- Overstock (a digital retailer which accepts bitcoin)
Even though blockchain technology has been present for almost a decade, it has only just begun to be used in the real world. In the next few years, blockchain may significantly impact the financial, technological, and many other industries, or it might take much longer. Because of this, it is essential to focus on stocks of businesses that will undoubtedly profit from the development of blockchain technology but will still be okay even if their blockchain objectives don’t materialize.