Beyond Crypto:Block Chain Stocks to Buy
A blockchain is a form of ledger technology (also known as distributed ledger technology) that keeps records in a decentralized manner. A bank, for example, can store information (say, payment transactions) on its internal servers, but blockchain technology allows the creation of an unchangeable public ledger that's accessible to all users. Blockchain ledgers are a very secure means of storing data since they cannot be modified retroactively, and they can be used anonymously to protect users' privacy.
Dozens of publicly traded companies now incorporate blockchain into their operations, offer blockchain-related services to customers, or play a role in the cryptocurrency industry. Some are exclusively focused on blockchain innovation and/or cryptocurrencies, while others are using blockchain-related products and services to complement an existing successful business.
With that in mind, here's a list of nine excellent blockchain companies to consider if you want exposure to this exciting technology in your stock portfolio.
Nvidia is the leading manufacturer of graphics processing units (GPUs), which are essential components in such important technological areas as artificial intelligence, autonomous vehicles, and gaming.
In addition, GPUs are key hardware components of cryptocurrency mining. In a nutshell, "miners" use specialized GPUs to process transactions on the blockchain and are rewarded with newly minted digital coins. Although sales of Nvidia's crypto-targeted CMP chips have cooled off as cryptocurrency prices have declined, sales could rebound if the crypto market recovers. And, even if it doesn't, the rest of Nvidia's business is an absolute powerhouse market leader.
Financial technology company Block, formerly known as Square, has two main components to its business -- its payment-processing ecosystem for small businesses and its Cash App personal financial platform. The company also has operations in business lending, a stock trading platform, and buy-now-pay-later financing. The company also operates the Square Online Store platform, which helps merchants build out e-commerce and omnichannel capabilities.
Block is a blockchain stock in two main ways. Most obviously, Cash App allows users to buy and sell Bitcoin quickly and easily. With the company reporting more than $10 billion in Bitcoin purchases in 2021 alone, this is a significant part of the company's business. Also, Block has its team of Bitcoin developers, known as Spiral (formerly Square Crypto), that has several exciting projects, as well as an open-developer platform for blockchain applications known as TBD. The company's new name is indicative of its shift in focus toward blockchain technology solutions.
Although IBM's performance in recent years hasn't been stellar, the company recently made some big moves to jump-start growth. For example, its acquisition of open-source software developer Red Hat gave it plenty 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 Home Depot, Renault, Albertsons, and many more. It could have a major growth runway if blockchain-based solutions gain more traction in the future. As an example, IBM Blockchain is focusing on helping customers build more dependable and efficient supply chains.
