When it comes to the most promising technologies that have taken the last decade by storm, blockchain certainly takes up most of the limelight. You can talk about cryptocurrencies here but again, crypto is a blockchain-based product. It has been predicted that global investment in blockchain-based solutions is estimated to hit a mighty $11.7 billion by the end quarter of 2022. In fact, market reports also suggest that the global market of blockchain technology is projected to accumulate around $20 billion by 2024. It’s self-explanatory that blockchain investment is a growing market today and that too for all the great reasons. Read more at Multibank.io.
When it comes to blockchain investment, there are two major ways by which you can invest in blockchain technology. First, currently, there is no way that allows direct blockchain investment. So, one way to invest in this revolutionary tech is to put your money into companies that are developing the technology or deploying blockchain to elevate their products or services. The other way for blockchain investment is to invest in blockchain-based products.
The post below will discuss the versatile avenues for blockchain investment- but before that let’s have a snippet on why companies are increasingly deploying blockchain in their organization.
Blockchain- features and advantages
Essentially, blockchain is a game-changing Distributed Ledger Technology. The technology houses a shared public ledger that operates on a decentralized and immutable infrastructure, backed by advanced cryptographic protection.
Key features of blockchain tech:
- Decentralized
- Immutability
- Time-stamped data
- Transparency
- High-end security
- Ability to set permissioned access to parts of database
Now, let’s look at the major advantages of blockchain that have inspired the recent surge in blockchain investment.
To start with, the blockchain platform assures a highly secured database to store business, especially confidential data. Any data that will be stored on the blockchain will be secured by cutting-edge cryptography protection. Moreover, you can always set permission-based access on your database to ward off unauthorized entry. Also, data entered on blockchain ledger is always immutable and cannot be altered by anybody.
Another reason that has led to a dramatic rise in the rate of blockchain investment is the concept of decentralization. The revolutionary DLT technology facilitates P2P exchange or transaction which is direct and always devoid of any intermediary. As a result, blockchain-based exchanges or transactions are always faster and more economical than traditional processes that involve intermediaries.
Besides, the blockchain technology assures easy transparency across the entire network, thanks to its decentralized nature. This way, companies can keep track of the source and the entire line of the supply chain that eventually helps to clear miscommunication and disputes arising out of it. Most importantly, the “transparency” quotient of blockchain helps to locate flaws in the chain on time so that corrective steps can be taken before it’s too late.
Smart contracts are another aspect that has driven the rise in blockchain investment lately. These are self-enforceable digital contracts that perform automatic executions based on conditioned programming. Smart contracts have proven to make business operations faster, more efficient, and also more affordable.
Investment in blockchain:
When it comes to blockchain investment, the best way to enter the world is through investing in companies that are developing blockchain applications or use cases-
DeFi organizations
There could be a steaming debate about whether crypto would replace fiat in the coming 10 years but one thing is for sure, DeFi is making headway in mainstream finance big time.
DeFi is all about creation of a decentralized platform for financial activities that would be devoid of interference from centralized financial institutions. DeFi advocates the idea of independent control of finances for the general populace through the concepts of P2P lending, digital wallets, as well as other kinds of decentralized financial services.
Cryptocurrency is definitely one of the major and most celebrated parts of the DeFi ecosystem today. Other examples of DeFi where you can put money for blockchain investment are crypto exchanges, DeFi lending platform, and so on.
Metaverse
A key aspect of the futuristic Web 3.0 order, Metaverse refers to virtual projects that are uniquely designed to offer an immersive experience. In other words, Metaverse brings to you a digital immersive world where you can play games, by lands, work, socialize, and so on- just like the way you would do in a real off-chain world. The blockchain technology is the foundation platform for Metaverse projects.
A diverse array of organizations are developing Metaverse projects today, ranging from tech to social media to game development companies, and so on. For blockchain investment, you can invest in companies that are developing the Metaverse projects or you can also put your money in Metaverse tokens/coins.
NFTs
Developed on blockchain technology, NFTs are Non-Fungible Tokens that cannot have a second copy. Each NFT is exclusive and derives its value from its rarity and uniqueness. NFTs are deployed to represent digital versions of music, artwork, photography, and more. NFTs are one of the most potential platforms that you can count on for blockchain investment.
The NFT market currently hovers around $35 billion (2022). By 2025, the NFT market is estimated to touch around $80 billion. Based on those inspiring numbers, blockchain investment on the NFT market in 2022 is predicted to reward you with sky-rocketing returns in the coming 3-4 years.
Digital securities
Developed on blockchain technology, digital securities can be defined as investment vehicles on the digital plane. The major industries where you can find digital securities for blockchain investment are hedge fund, private equity, real estate, and venture capital.
One of the best aspects of digital securities is the deployment of smart contracts. These blockchain applications not only help to assure automatic and fast exchanges but also provide an optimized safe guard for investors and traders who engage in trading of securities.
Final words
So, you have quite a list of platforms for blockchain investment.
But, one thing you must know here is that blockchain is an emerging technology and companies developing blockchain-based products are usually a new bunch. So, you do not know for sure about how long they are going to survive. Thus, when it comes to blockchain investment, always proceed with a small-budget capital.