3 major blockchain titles to keep eye on in September – The Motley Fool


Last year, cryptocurrencies were unstoppable. And while the pure moment may be partly responsible for that force, much of it is due to the emergence of blockchain technology.

Put simply, blockchain offers a completely new way of transmitting money without using traditional banking networks, as well as a means of securely storing and accessing data. This means that blockchain could transform the speed at which money moves from point A to point B, and it could be a transparent but safe registry for things like medical records or personal identification. Although it is a relatively new technology that still has some knots to solve, it has clearly demonstrated great potential in small-scale tests.

That said, we asked three of our crazy contributors to name a blockchain stock that they think should be on your radar this September. It is interesting to note that all three have chosen relatively "safe" companies that have stable and profitable core operations, with rapidly growing blockchain projects. These companies are Dow stalwart IBM (NYSE: IBM) exchange giant Nasdaq (NASDAQ: NDAQ) and memory kingpin Seagate Technology ( NASDAQ: STX) .

  A person holding a shining golden block surrounded by a trellis representing the blockchain.

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Leader in a new technological trend (for once)

Sean Williams (IBM): Although it is easily the most difficult of the three selections, I believe that investors who are trying to get a & # 39; blockchain exposure would be wise to consider Big Blue.

The intrigue on the approach of IBM to the blockchain is twofold. First and foremost, the company is ensuring that it will not be late for the game, as it was when sales of legacy hardware and software started to decline as companies moved to the cloud. These legacy sales have been a hindrance to IBM for some years now and if or when blockchain replenishes with large companies, IBM should be at the forefront of such adoption rather than trying to hold on to queues.

Second, IBM is approaching its blockchain strategy from both ends of the spectrum (that is, in terms of financial and non-financial products). The company's proprietary blockchain is currently being tested in the South Pacific with about a dozen major banks as a means of speeding up transaction and settlement times safely.

In the meantime, he set up a joint venture at the start of the year with the maritime giant AP Moller-Maersk (better known as Maersk) to create blockchain-based shipping solutions that would eliminate paperwork and accelerate the transport of goods through the use of smart contracts. Although the financial aspects of blockchain are generally what people focus on, I think the potential for interrupting this new technology in supply chains is much greater.

Better yet, a bet on IBM means to dip your toes in the water rather than dive deep. As noted, the company is still generating a significant amount of legacy sales and profits, as well as benefiting from relatively strong cloud computing growth. Even if IBM is no longer exactly a growing company, it will not disappear. This makes it a smart way to bet on blockchain without taking an exorbitant amount of risk.

  A key inside a padlock that is surrounded by digital alphanumeric codes.

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Blockchain possession

Keith Speights (Nasdaq): Nasdaq is the second largest stock exchange in the world in terms of market capitalization of listed shares. It is also one of the greatest innovators in the use of blockchain technology.

The company sees the blockchain as important as having an entire technology-focused department. Fredrik Voss, vice president of blockchain innovation for Nasdaq, said the company "took it upon itself to be a leader in terms of encouraging people and businesses to explore this technology and understand it better."

There have been several successes since the Nasdaq blockchain efforts. The company launched Linq, which uses the blockchain to allow private companies to digitally represent ownership of shares. In June, Nasdaq, together with ABN AMRO Clearing, EuroCCP and Euroclear, announced the completion of a proof-of-concept test that used blockchain technology to resolve margin requests through a distributed network of donors, buyers and brokers in one matter of minutes.

Adena Friedman, CEO of Nasdaq, at the start of the year admitted that the stock exchange could even support blockchain-based cryptanalysis trading in the future. A move like this would make the Nasdaq probably the most visible face of the blockchain.

Analysts think the Nasdaq should be able to increase its revenues by more than 12% over the next five years. The way in which the company uses blockchain could be the key to deciding whether to offer such expectations. The Nasdaq is definitely a blockchain stock to watch.

  A business man who touches an encrypted block on a digital screen that is part of a larger blockchain.

Image source: Getty Images.

Trucks loaded with data

Todd Campbell [19659011] ( Seagate): Blockchain offers many advantages in terms of transparency and safety compared to previous generation masters books, but these advantages require a lot of power calculation and archiving.

Seagate, a Goliath data storage company, was one of the first companies to embrace the potential of blockchain to improve corporate finance. As a result, it will benefit not only from the storage demand but also from the efficiencies offered by blockchain.

Seagate also has the potential to profit from its decision to support Ripple Labs, a cryptocurrency and blockchain solution positioned as the best alternative to the technology currently used in cross-border transactions.

What I like best about Seagate is that it is a backdoor blockchain stock with real foundations behind it. In its recently reported 2018 fiscal balance sheet, company sales totaled $ 11.2 billion, up 4% year-on-year and its non-GAAP earnings were $ 5.51, up 34% on an annual basis. The storage market is volatile, but with a cash flow of $ 2.1 billion, it should have the financial flexibility to support the dividend, and with the 5.2% stocks and the blockchain rise, I think I buy a in the wallets could pay off in the long run.

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