Blockchain is Different from Bitcoin

Chris D. Redd
Jul 27, 2017 · 3 min read

Over the years, Blockchain has been synonymous with Bitcoin. For the past decade or so, these two technologies are trying to shape the future of currency as people know it today. However, what most people don’t realize is that Blockchain is different than Bitcoin in many respects. Without going into much detail, this is the year Blockchain is set to take the market by storm. A number of companies across a gamut of industries are taking the initial steps to adopt Blockchain. Some of the names on the list include IBM, JPMorgan, Amazon, and Microsoft.

As an investor, you will understand the stature and sheer standing of these corporations. When they enter the fray, you can rest assured that Blockchain is on the up and up. However, this information does not make investing in Blockchain any easier for you. Initially, it is a good idea to understand what Blockchain actually is.

What is Blockchain?

Technically, Blockchain is different than Bitcoin, but the two are not mutually exclusive. Blockchain is an underlying technology that tracks the records of transactions involving Bitcoin, which have been blocked for one reason or another. The information is available to the public, which has enhanced the reputation of the technology because of its transparency. In essence, Blockchain has enabled users to make safe transactions using Bitcoin. A permanent record is maintained for each transaction, ensuring there is a digital signature.

This adds a layer of validity to Bitcoin transactions, as they don’t involved any financial institutions. In the past few years, banks in various countries have considered using Blockchain as a means of enhancing the efficiency of their backend settlements. Other industries have also analyzed the technology, including online music, IoT, and cyber security. In particular, the IBM Watson IoT enables transmission of data from IoT devices to Blockchain ledgers.

How to Invest in Blockchain

There are a couple of options available to you when it comes to investing in Blockchain. Here is an overview of both:

Stocks

A number of companies are operating in the Blockchain niche and are listed publicly as well. You can conveniently invest your money in their stocks. Keep in mind that the number of companies is limited at present, but it is poised to increase down the line. One of the companies you can invest in is BTCS, which is the first Blockchain company to trade publicly in the US. There are other stocks you can consider investing in as well. Ethereum (ETH) is another cryptocurrency to look into. It is used in cloud computing functions, crowdfunding, and gold investing among some big industry users, such as, Microsoft and Intel.

Crowdfunding

A viable means of investing in Blockchain in the modern era is via crowdfunding. You can find a Blockchain project that requires investment and have people fund it on one of the numerous crowdfunding platforms. This is an option more suitable for angel investors and venture capitalists, as compared to individual investors. However, this is an option worth considering.

Keeping in mind the growing popularity and business around Blockchain, now is the best time to invest in the technology. The market outlook is positive and experts believe that investors who are interested in Blockchain should take the plunge now.


@ChrisDRedd1

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Chris D. Redd

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| Investor | Connector| A leader that invests in people and leads by example. Making the Impossible Possible!

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