Is Blockchain Coming Back? Special coverage on Blockchain Foundry (BCFN:TSXV)

Blockchain Foundry
Published on: July 23, 2020

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 a brief overview of what blockchain technology is, followed by some of our favorite blockchain stocks—and one important principle blockchain investors should keep in mind.

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. 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.

Just to name a few applications for blockchain:

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

Who Uses Blockchain

Dozens of publicly traded companies incorporate blockchain into their operations, offer blockchain-related services to customers, or play a role in the cryptocurrency industry.

These include:

  1. Mastercard
    Payment processing giant Mastercard (NYSE:MA) has grown tremendously for several years as the trend toward a cashless economy has led to increasing volumes of debit and credit card transactions. Blockchain technology has the potential to transform the cashless payment space, particularly when it comes to cross-border money transfers, which have historically been slow and costly. And in late 2019, Mastercard announced a partnership with blockchain technology company R3 to develop a new cross-border payment system, which could ultimately give the company a major competitive advantage in the industry by eliminating the major pain points of sending money internationally.
  2. CME Group
    CME Group (NASDAQ:CME) is the world’s largest futures and options exchange, offering derivative securities for stocks, indexes, foreign exchange, and more. It also is the only exchange that creates a market for bitcoin futures contracts. If bitcoin interest soars, CME Group stands to see revenue rise, as the company gets a small fee for every transaction made on its exchanges.
  3. Square
    Payment technology company Square (NYSE:SQ) has two main components to its business — its payment-processing ecosystem for small businesses and its Cash App person-to-person payment platform. It also has operations in business lending, a stock trading platform, and several other adjacent businesses, and recently introduced Square Online Store, which helps merchants build out e-commerce and omnichannel capabilities.
    Square is a blockchain stock in two main ways. Most obviously, Cash App allows users to buy and sell bitcoin quickly and easily, and with over $500 million in bitcoin sales on its platform in 2019, this is a significant part of the company’s business. Also, Square has its own team of bitcoin developers, known as Square Crypto, that has several exciting projects of its own.

Another Canadian stock that has been succeeding in the Blockchain market is Blockchain Foundry, BCFN on the TSX Venture Exchange.  The company helps large firms develop blockchain solutions for their businesses, and in 2019, the company grew its revenue to $853,642 from $45,691 in 2018.  The Company is now working on securing larger contracts while developing other products through its partnerships in the industry.

Learn more about Blockchain Foundry on NAI500.com.

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