You may know blockchain as the technology behind Bitcoin and many other cryptocurrencies. However, many investors don’t have a thorough understanding of what blockchain is or the best ways to invest in this exciting tech trend.

Here’s an overview of what blockchain technology is, followed by some of the top premium blockchain stocks to invest in at the moment.

What is blockchain?

Blockchain is a form of ledger technology (also known as distributed ledger technology) that keeps records in a decentralized manner. Instead of storing information (say, payment transactions) only on a bank’s internal servers, blockchain technology allows the creation of an unchangeable public ledger that’s accessible to all users.

Read Also: How to Profit from Blockchain Technology

Blockchain ledgers are a very secure means of storing data since they cannot be modified retroactively, and they can be used anonymously to protect the users’ privacy.

It’s worth noting before we go any further that blockchain and cryptocurrency are two different concepts. Blockchain is the underlying technology that powers cryptocurrencies, but it has many other potential applications that have nothing to do with Bitcoin or other digital currencies.

Think of cryptocurrencies as a car and blockchain as its motor. Sure, you need a motor to power a car, but there are many other potential applications for motors. Just to name a few, blockchain has implications for:

• Digital IDs
• Rewards and loyalty programs
• Copyright protection
• Digital voting
• Real estate transfers
• Medical records
• Wills

What is the best Blockchain stocks to invest in?

1. HIVE Blockchain

HIVE Blockchain Technologies Ltd, formerly Leeta Gold Corp, is a Canada-based company within blockchain sector. It partners with Genesis Mining Ltd, a cryptocurrency mining hashrate provider, in order to operate blockchain infrastructure, namely cryptocurrency mining facility in Iceland.

The facility produces mined cryptocurrency Ethereum around the clock and is monitored with Genesis Hive, Genesis’ proprietary software tool for large-scale mining, to automatically optimize chip temperatures and power consumption needed for coin production.

Also, the Company partners with Fiore Group, a Canadian merchant banking firm, in order to accelerate the development of the blockchain sector through traditional capital markets.

2. Riot Blockchain

Riot Blockchain Inc., formerly Bioptix, Inc., is focused on gaining exposure to the blockchain ecosystem through its cryptocurrency mining operations, internally developed businesses, joint ventures, and targeted investments in the sector. The Company primarily focuses on Bitcoin and general blockchain technology.

The Company has deployed approximately 8,000 application-specific integrated circuits (ASIC) miners at its cryptocurrency mining facility in Oklahoma. The Company, through its subsidiary TESS Inc., seeks to develop a blockchain-based escrow service for wholesale telecom carriers.

It holds a 13% interest in Coinsquare Ltd, which is a digital currency exchange in Canada. It also holds investments in Verady, LLC, which provides cryptocurrency accounting and audit technology services.

3. Galaxy Digital

Galaxy Digital is a diversified financial services firm dedicated to the digital asset, cryptocurrency and blockchain technology industry. As one of the most well-capitalized and trusted companies in the industry, Galaxy Digital has raised $700 million to date, and trades on the TSX Exchange under the symbol “GLXY”.

Galaxy Digital operates four synergistic business lines: Trading (arbitrage, macro, market-making/OTC), Asset Management (passive and active strategies, including venture capital), Principal Investing, and Investment Banking Services (capital markets and M&A). Galaxy Digital’s CEO and Founder is Michael Novogratz, who leads a team of institutional veterans focused on this high-growth, technology-driven space.

The company is headquartered in New York City, with offices in San Francisco, Tokyo, Hong Kong, London, Vancouver, the Cayman Islands (registered office) and New Jersey.

4. IBM

Although IBM‘s (NYSE:IBM) performance in recent years hasn’t been stellar, the company has made some big moves recently to try to jump-start growth. For example, its $34 billion acquisition of Red Hat gives it lots of cross-selling opportunities with its enterprise clients.

On the blockchain side of things, IBM Blockchain has already provided transformative solutions for clients such as Kroger (NYSE:KR), True Tickets (a ticket authentication company), and many others, and it could have a major growth runway if blockchain-based solutions gain more traction in the years to come.

As one potential example, IBM Blockchain is focusing on helping customers build more dependable supply chains in light of the COVID-19 interruptions.

5. CME Group

CME Group Inc., through its exchanges, provides products across all asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The Company’s segment primarily consists of the Chicago Mercantile Exchange Inc. (CME), Board of Trade of the City of Chicago, Inc. (CBOT), New York Mercantile Exchange, Inc. (NYMEX) and Commodity Exchange, Inc. (COMEX) exchanges.

The Company provides electronic trading around the globe on its CME Globex platform. The Company also offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives through its clearinghouses CME Clearing and CME Clearing Europe.

It also provides hosting, connectivity and customer support for electronic trading through its co-location services. The Company’s CME Direct platform offers side-by-side trading of exchange-listed and privately negotiated markets.

6. Nasdaq

Nasdaq, Inc. (Nasdaq) is a holding company. The Company is a provider of trading, clearing, exchange technology, regulatory, securities listing, information and public company services. It manages, operates and provides its products and services through four segments: Market Services, Corporate Services, Information Services and Market Technology.

Its global offerings include trading and clearing across various asset classes, trade management services, data products, financial indexes, capital formation solutions, corporate solutions, and market technology products and services. Its technology markets across the globe, supporting equity derivative trading, clearing and settlement, cash equity trading, fixed income trading and various other functions.

It’s Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income clearing corporation, and trade management services businesses. Its Corporate Solutions business serves corporate clients.

7. Alibaba Group

Alibaba Group is a holding company that provides the technology infrastructure and marketing reach to help merchants, brands and other businesses to leverage the power of new technology to engage with users and customers to operate.

The Company operates four business segments. The Core Commerce segment provides China retail, China wholesale, International retail, International wholesale, Cainiao logistics services and local consumer services through Taobao Marketplace and Tmall.

The Cloud Computing segment provides a complete suite of cloud services, including database, storage, network virtualization services, big data analytics, and others. The Digital Media and Entertainment segment provides consumer services beyond the core business operations. The Innovation Initiatives and Others segment is to innovate and deliver new services and products.

8. Grayscale Bitcoin Trust

Grayscale Bitcoin Trust (BTC) is an investment vehicle. BTC enables investors to gain access and exposure to the price movement of bitcoin in the form of a traditional security without buying, storing and safekeeping bitcoin directly.

BTC’s purpose is to hold bitcoins, which are digital assets that are created and transmitted through the operations of the peer-to-peer bitcoin network, a decentralized network of computers that operates on cryptographic protocols.

The investment objective of BTC is for the shares (based on bitcoin per share) to reflect the value of the bitcoins held by BTC, determined by reference to the bitcoin index price, less the BTC’s expenses and other liabilities. The activities of BTC include issuing baskets in exchange for bitcoins transferred to the BTC as a consideration in connection with the creations.

9. Tzero Group Inc

tZERO Group, Inc. (“tZERO“) is a majority-owned subsidiary of Overstock.com, focusing on the development and commercialization of financial technology (FinTech) enhanced with cryptographically-secured, decentralized ledgers – more commonly known as blockchain technologies. Since its inception, tZERO has pioneered the effort to bring greater efficiency and transparency to capital markets.

tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations, or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.

10. Hut 8 Mining

Hut 8 Mining Corp., formerly Oriana Resources Corp., is a Canada-based cryptocurrency mining and block chain infrastructure company. The Company is engaged in the business of utilizing specialized equipment to solve computational problems to validate transactions on the bitcoin block chain.

11. Bitfarms

Bitfarms Ltd is a Canada-based blockchain infrastructure company that operates cryptocurrency mining operations in North America. The Company owns and operates blockchain farms that power the global decentralized financial economy. The Company provides computing power to cryptocurrency networks such as Bitcoin, earning fees from each network for securing and processing transactions.

12. BIGG Digital Assets

BIGG Digital Assets Inc., formerly BIG Blockchain Intelligence Group Inc, is a Canada-based company that develops blockchain search and analytics solutions. It develops and provides blockchain and cryptocurrency search, risk-scoring and data analytics tools and investigation services.

Its blockchain-agnostic search and analytics engine, QLUE, enables law enforcement, regulatory technology (RegTech), regulators and government agencies to visually trace, track and monitor cryptocurrency transactions at a forensic level. Its commercial product, BitRank Verified, offers a risk score for bitcoin wallets, enabling RegTech, banks, automated teller machines (ATMs), exchanges and retailers to meet traditional regulatory/compliance requirements.

13. Marathon Patent Group

Marathon Patent Group, Inc. is a digital asset technology company. The Company focuses on the blockchain ecosystem and the generation of digital assets. The Company is operating one mining facility in Quebec, with plans to open additional facilities in the future.

The Company offers managed mining solutions on its robust proprietary infrastructure and smart mining software. The Company intends to power and secure blockchains by verifying blockchain transactions using custom hardware and software. It is using its hardware to mine bitcoin (BTC) and expect to mine BTC and ether (ETH), and potentially other cryptocurrencies.

14. Coinsilium Group

Coinsilium is a blockchain venture builder and investor that finances and manages the development of early-stage blockchain technology companies. Coinsilium’s focus is on driving innovation in fintech and blockchain technologies, enabling businesses to take advantage of growth opportunities. Coinsilium also provides advisory services to companies planning token generating events.

Over the past three years, Coinsilium has built a portfolio of interests in fast-growing blockchain companies from around the world, including Factom, RSK Labs, Blox, and Indorse.

Coinsilium was originally set up to offer shareholders exposure to opportunities in the fast-growing blockchain industry via a recognized stock exchange (NEX Exchange). In July 2017, the company announced an exit on one of its seed investments, SatoshiPay, after less than two years with a valuation uplift of 363% 

15. Codebase Ventures

Codebase Ventures Inc, 360 Blockchain Inc, is a Canada-based investment company. The Company is a hands-on team of financial and technology experts who invest early in great ideas.

It is seeking for early-stage opportunities in the blockchain and cryptocurrency fields, especially in fields of e-sports, Human Resources (HR), Internet of Things (IoT), and consumer loyalty programs, among other areas. In the e-sports, sector is looking for blockchain-based advances that improve live-streaming, ticketing, betting and fraud prevention.

16. Lomiko Metals Inc

Lomiko Metals Inc is a Canada-based mining and exploration company. The Company is focused on advancing its principal assets, which include Quatre-Milles East and West (Graphite), Quebec; the La Loutre and Lac-des-Iles properties, Quebec, and the Bourier property, Quebec (Lithium). In addition, the Company owns the Vines Lake property in the Cassiar region of British Columbia.

The Quatre-Milles Graphite Property is located in southwestern Quebec. The Quatre-Milles Graphite property consists of 28 contiguous claims totaling 1,600 hectares. The Quatre-Milles (West) property comprises 37 claims over an area of 2,183.97 hectares. The La Loutre property consists of 42 continuous mineral claims totaling 2,867.29 hectares.

The Lac-des-Iles Property consists of one contiguous block of 104 mineral claims totaling 5,601.30 hectares in the Laurentian region of Quebec. The Vines Lake property consists of three contiguous claim units totaling 1,209.84 in the Cassiar region of British Columbia.

17. Long Blockchain Corp

Long Blockchain Corp., formerly Long Island Iced Tea Corp., is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is focused on developing and investing in blockchain technology. It is also engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry.

It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. It produces brewed tea, using black tea leaves, purified water and natural cane sugar.

Its Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet peach, and sweet tea. It also offers lower calorie iced tea in over 12-ounce bottles. The lower calorie flavor options include mango, raspberry, and peach. Its products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea, and Herbal Tea.

18. Berkshire Hathaway

Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in various business activities. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group;

Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products;

McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.

19. Fujitsu

Fujitsu Limited is a Japan-based company mainly engaged in the development, manufacture, sale and maintenance of a range of information and communications technology (ICT) products and electronic devices. The Company operates through three business segments.

The Technology Solutions segment provides system integration solution/system integration (SI) service, outsourcing service, network service, system support service, and infrastructure service, among others.

The Ubiquitous Solutions segment is engaged in the design, manufacture, and sale of notebook computers, desktop computers, and mobile phones. The Device Solutions segment provides large scale integrated circuits (LSI), semiconductor packages, batteries, and other electronic parts.

20. OTC Markets Group

OTC Markets Group Inc. organizes securities into three markets based on the quality and quantity of information companies disclose. The Company provides services in three areas: Trading Services, Market Data and Corporate Services.

Through its Alternative Trading System (ATS), OTC Link ATS, the Company connects the United States broker-dealers to provide liquidity & execution services for securities on its markets. The Market Data Licensing business line provides investors, traders, institutions, and regulators with a suite of enterprise and user market data licenses.

Corporate Services business line includes the OTCQX Best Market (OTCQX), the OTCQB Venture Market (OTCQB) and the Pink Open Market (Pink), and its suite of disclosure and information services. Corporate Service products provide companies with solutions to engage and inform investors.

21. Digital X

DigitalX Limited, formerly Digital CC Limited, is an Australia-based software solutions company developing products and services. The Company is involved in the activities, which include development of software for retail-based consumer applications; Bitcoin trading and the operation of a liquidity desk, and Bitcoin mining.

The Company operates through two segments: Software Development and Trading. The Company offers AirPocket, which is a short message service (SMS)-enabled, international mobile bill payments platform and mobile money remittance application. The application supports international Airtime transfers for the United States consumers to approximately 10 countries in Latin American in a partnership.

The application is available on Google Play and the Apple App store. The Company also offers DigitalX Direct, which is a business-to-business liquidity platform that is designed to provide real time liquidity to institutional investors and commercial operators.

22. Leonovus

LeoNovus Inc. is a software company. The Company has developed a software-defined storage and intelligence network that enables public cloud computing by leveraging storage medium to bare metal while identifying and leveraging idle storage in existing hardware systems from personal computers (PCs), set top boxes (STB), servers and other Internet connected devices.

It operates through browser-based Internet platform segment. Its SMART PLATFORM provides connected devices with access to features, content and functionality over the Web. It delivers a real-time service model to multiple markets, including residential, hospitality, commercial businesses and healthcare.

It enables ongoing just-in-time services and includes support, updates, metrics and transaction capabilities while providing a secure network. The Company is able to offer geo-distributed cloud services, as well as enables a secure application platform. LeoNovus USA Inc. is the subsidiary of the Company.

23. TSMC

Taiwan Semiconductor Manufacturing Co., Ltd. is principally engaged in the manufacture and sale of integrated circuits and semiconductor products. The Company is mainly engaged in the manufacture, sale and packaging test of integrated circuits and other semiconductor devices, the manufacture of masks, as well as the provision of computer-aided design services.

The Company’s products are applied to personal computer (PCs) and peripheral products, information applications, wired and wireless communication systems, industrial equipment, consumer electronics such as digital video disc players, digital TVs, game consoles and digital cameras.

The Company is also engaged in the development of 5-nanometer process technology, mask technology, complementary metal-oxide-semiconductor (CMOS) image sensor technology, three dimensional (3D) IC and TSMC system on integrated chips (TSMC-SoIC) technology, among others. The Company distributes its products to the United States, Asia and Europe.

24. First Bitcoin Capital

First Bitcoin Capital Corp (OTC:BITCF) is the largest shareholder of Bots, Inc. as a result of exchanging the majority of its assets therefor, but began developing digital currencies, proprietary blockchain technologies, and the digital currency exchange – www.CoinQX.com (in Beta) in early 2014.

We saw this step as a tremendous opportunity to create further shareholder value by leveraging management’s experience in developing and managing complex Blockchain technologies and in developing new types of digital assets. Being the first publicly-traded cryptocurrency and blockchain-centered company, we provide our shareholders with diversified exposure to digital cryptocurrencies and blockchain technologies.

The Company began developing its own blockchain and cryptocurrency called First Bitcoin in 2016. Prior to transferring the majority of this asset to Bots, Inc., the Company updated the BIT wallet and added more functionality.

Users are able to generate BIT through the processes of POW and POS mining. The First Bitcoin cryptocurrency has a current supply of 20,707,629,255 BIT. It is currently trading on LIVECOIN.net with its explorer at www.explorer.bitcf.net.

25. Blockchain Foundry

Blockchain Foundry Inc. develops and commercializes blockchain-based business solutions. The Company provides a proprietary blockchain-based e-commerce solution, as well as consulting services to corporate clients seeking to incorporate blockchain technology in their businesses. Blockchain Foundry serves customers in Canada.

26. Netcents Technology

Netcents Technology Inc is a Canada-based company. The Company through its online payments platform, provides consumers and merchants online services for managing electronic payments. The Company is focused on capturing the migration from cash to digital currency by utilizing Blockchain Technology to provide payment solutions.

The Company works with its financial partners, mobile operators, exchanges, to streamline the user experience of transacting online. The Company is integrated into the Automated Clearing House (ACH) and is registered as a Money Services Business (MSB), which ensures its consumer’s security and privacy.

27. eXe Block Technology

eXeBlock Technology Inc. is an early mover in both the blockchain and digital currency ecosystems. It intends to be one of the first “Pure Play” Canadian public companies focused on blockchain technology. The company has uniquely positioned itself to capitalize on emerging opportunities in the blockchain sector.

As of mid-2017 the blockchain sector is moving into to the implementation stage, creating huge opportunities for development and distribution of blockchain-enabled decentralized applications. To many, investing in decentralized applications is a complex and risky business.

eXeBlock’s business strategy is based on reducing risk to investors by exposing shareholders from public markets to the disruptive potential of blockchain applications across several industries, platforms and applications. 

28. SBI Group

SBI Holdings, Inc. is a financial company. The Company operates in three business segments. The Financial Service segment is engaged in the provision of financial products and related services focusing on securities, banks and insurance.

The Asset Management segment includes investment business, overseas financial service business, and asset management service business. The Bio-related segment is engaged in the development and sale of pharmaceuticals, health foods and cosmetics.

Does Blockchain have a Future?

While Bitcoin and other cryptocurrencies grew intensely popular among the general financial and investment worlds in late 2017 and early 2018, they have since become more of a niche area for cryptocurrency enthusiasts. However, blockchain technology remains a quickly-growing area of growth for companies across a host of industries.

It is possible that blockchain technology will ultimately be seen as the most important innovation to come out of the cryptocurrency boom. Below, we’ll take a closer look at blockchain and see why this technology could be valuable to businesses of all kinds.

Basics of Blockchain

Depending upon the blockchain, parties may be able to view previous ledger entries and record new entries, although most blockchain networks have complex rules for the addition of new groups of records, “blocks,” to the chain of previous records.

The blocks and the contents within them are protected by powerful cryptography, which insures that previous transactions within the network cannot be either forged or destroyed. In this way, blockchain technology allows a digital currency to maintain a trusted transaction network without relying on a central authority. It is for this reason that digital currencies are thought of as “decentralized.”

While blockchain is most famous for its role in facilitating the rise of digital currencies over the past several years, there are also many other non-cryptocurrency uses for this technology. Indeed, some blockchain proponents believe that the technology could far outpace cryptocurrencies themselves in terms of its overall impact, and that the real potential of blockchain is only just now being discovered.

As such, it’s likely that financial advisors and many others in the investing world will encounter blockchain technology much more in the years to come, whether it is linked with a specific cryptocurrency or if it’s being utilized in any number of other applications.

Cross-Border Payments

Traditionally, the transfer of value has been both expensive and slow, and especially for payments taking place across international borders.

One reason for this is that, when multiple currencies are involved, the transfer process typically requires the participation of multiple banks in multiple locations before the intended recipient can actually collect his or her money. There are existing services to help facilitate this process in a faster way, but these tend to by quite expensive.

Blockchain technology has the potential to provide a much faster and cheaper alternative to traditional cross-border payments methods. Indeed, while typical money remittance costs might be as high as 20% of the transfer amount, blockchain may allow for costs just a fraction of that, as well as guaranteed and real-time transaction processing speeds.

There are hurdles to be passed, including the regulation of cryptocurrencies in different parts of the world and security concerns. Nonetheless, this is one of the most promising and talked about areas of blockchain technology application.

Smart Contracts

Smart contracts are often seen as a highly powerful application of blockchain technology. These contracts are actually computer programs that can oversee all aspects of an agreement, from facilitation to execution. When conditions are met, smart contracts can be entirely self-executing and self-enforcing.

For proponents of smart contracts, these tools provide a more secure, more automated alternative to traditional contract law, as well as an application that is faster and cheaper than traditional methods.

The potential applications of smart contract technology are essentially limitless and could extend to almost any field of business in which contract law would normally apply. Of course, while highly touted, smart contracts are not a magical substitute for old-fashioned diligence.

In fact, the case of the Decentralized Autonomous Organization (DAO) is a cautionary tale and a warning to investors to not assume that smart contracts are any better than the information and organization that a user puts into them. Nonetheless, smart contracts remain one of the most exciting ways that blockchain technology has already extended beyond the cryptocurrency space and into the broader business world.

Identity Management

One of the most problematic results of the internet age has been identity security. As diligent as many individuals and organizations are in maintaining their online identities and securing private information, there are always nefarious actors looking to steal and profit off of these digital items. Blockchain technology has already demonstrated the potential for transforming the way that online identity management takes place.

Read Also: How to use Blockchain Technology in Converting Relevant Leads for Business

Blockchain offers a tremendous level of security, thanks to independent verification processes that take place throughout member computers on a blockchain network. In digital currency cases, this verification is used to approve transaction blocks before they are added to the chain. This mechanism could just as easily be applied to other types of verification procedures, including identity verification and many other applications as well.

The applications for blockchain and identity management are wide-ranging. For instance, blockchain could potentially be used to aid in maintaining voter information and ensuring proper functioning of the electoral process. Blockchain could be used to securely and efficiently transfer user data across platforms and systems. The technology could also be used to maintain and protect records of real estate ownership, titles, and more.

Supply Chain Uses

For many businesses across various industries, a key to success is a well-functioning, efficient supply chain. Blockchain technology has already been used in multiple industries as a means of keeping tabs on supply chains and ensuring their efficiency. This could eliminate human work and the potential for error from a complex and crucial process.

At this point, blockchain is a technology with an exceptionally broad set of potential uses. Although blockchain is most famous for its connections to the blossoming cryptocurrency world, several other applications have already been explored.

Perhaps even more exciting, though, is that new ways of utilizing blockchain emerge every day. As such, whether you are directly involved in the digital currency space or not, it’s essential to develop an understanding of blockchain and how it may be used to transform the business and investment worlds.