April 27, 2022
For the past few years, everyone has been talking about blockchain. It’s the new technology disrupting many industries, including financial services. With more governments and companies around the world recognizing the value and need for Blockchain technology, there is no denying the significant growth opportunities for investors. But, before we get into how you can invest, let’s start with the basics. What is blockchain technology and what makes it so intriguing?
What is Blockchain Technology?
The subject of blockchain technology can come across as complex and intimidating. However, when you break it down, the blockchain is simply a shared ledger or list of records linked together. Its purpose is to track and record transactional data or other assets.
The blockchain is composed of blocks. Each block contains a collection of unique transaction data. When one block is filled with data, a new block is created and connected to the next block, creating a chain. Each transaction has a cryptographic hash, as well as the hash of the previous block. You can think of a hash as a fingerprint – a unique identifier that can not be replicated or changed. The data in each block is also time-stamped and organized chronologically, creating an immutable record of transactions.
While blockchain technology has become synonymous with Bitcoin and other cryptocurrencies, its application is more far-reaching. Blockchain technology can be used to track nearly any asset, tangible (a house, car, cash, land) or intangible (non-fungible tokens, intellectual property, patents, copyrights, branding). Virtually any transaction can be recorded on a blockchain network, reducing risk, and cutting costs for all involved. From healthcare to supply chain management, voting, and data storage, Blockchain technology has the potential to revolutionize most industries.
What Are the Key Benefits of Blockchain Technology?
There are several key characteristics and benefits that make blockchain technology so intriguing and valuable, including:
Blockchain Technology as an Investment Opportunity
Blockchain technology is transforming businesses and government institutions around the world. With so many benefits, it’s easy to see why more industries are adopting blockchain technology. The global blockchain technology market was valued at USD 5.92 billion in 2021 and is expected to reach USD 10.02 billion in 20221. This growth is predicted to continue at a compound annual growth rate (CAGR) of 85.9% from 2022 to 2030. The significant expansion in blockchain technology makes it ripe for investment opportunity.
CI Global Asset Management recently launched the CI Galaxy Blockchain ETF (TSX: CBCX) which provides efficient and targeted exposure to companies that seek to benefit from the development of blockchain technologies including companies engaged in cryptocurrency mining, cryptocurrency enabling technologies and cryptocurrency buyers. See how CI Galaxy Blockchain ETF is an investment in the blockchain economy.
1Source: Grand View Research, “Blockchain Technology Market Size, Share & Trends Analysis Report, 2022.”
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