The cryptocurrency realm is riven by volatility and upstarts. These newcomers are more hype than promise. Some analysts have derided cryptocurrencies as a new manifestation of the Dutch tulip craze.
It’s true, digital money such as Bitcoin have experienced their ups and downs. Bitcoin has plunged 40% in value over the past six weeks. But here’s the real story: the blockchain infrastructure behind cryptocurrency. Blockchain technology has lasting, real-world applications across the business enterprise.
A major player in the blockchain space is Global Blockchain Technologies Corp. (OTC: BLKCF) (CSE: BLOC). Global Blockchain this month racked up a flurry of tangible achievements. The company’s heightened activity lately underscores the growing opportunities in blockchains.
Blockchains started with cryptocurrencies. These are digital ways to exchange money. The money isn’t physical. The exchanges are recorded in blockchains, which form the infrastructure of cryptocurrencies.
Every cryptocurrency is linked to a blockchain, which is a computer database of transactions in the currency. This database is distributed to its creators, called “miners.” These miners add transactions to the blockchain.
Cryptocurrencies are secured by encryption. Governments can’t mess with them. Cryptocurrencies are safe havens in a crisis. Think “digital gold.”
Blockchains have other uses. They let businesses store encrypted data in a ledger. Blockchains are used in finance, supply chains, and data storage. This gives Global Blockchain prospects in commerce.
Global Blockchain Technologies allows individual investors to tap profit-making opportunities within the blockchain space. These opportunities are carefully vetted by Global Blockchain. The company looks for management characterized by industry pioneers and early adopters in cryptocurrency technology.
Global Blockchain: On the Move
January has been a particularly active month for Global Blockchain.
On January 22, the company started trading on the Canadian Securities Exchange (CSE) under the same ticker “BLOC.” Effective January 19, shares of the company are no longer listed on the TSX Venture Exchange.
On January 25, the company announced that it had entered into an agreement with a turnkey mining operator to operate Global Blockchain’s more than 6,600 Antminer S9 bitcoin miners, with delivery expected to start in March. The Antminer S9 is the most powerful and efficient miner available to date. Dubbed the Montana Agreement, the deal will allow Global Blockchain to secure 100 megawatts (MW) of power in North America.
The company’s energy and mining partner has already made 64MW available. The balance will be available in the second quarter of 2018. The state-of-the-art facilities are located in Anaconda and Butte, Montana. The geographical location’s cool climate is a plus, because vast energy generation for cryptocurrency mining creates intense heat. The facility has guaranteed and exclusive rights to tap energy from an on-site substation.
Put simply, the super-fast computers in a cryptocurrency network agree, repeatedly, that what a blockchain says is accurate. To do this, they use an algorithm called a consensus mechanism. This mechanism is commonly referred to as “mining.”
As they unlock new coins, cryptocurrency miners also verify the blockchain to ensure individuals aren’t spending coins fraudulently. They add new lists of transactions – aka, blocks – to the chain. This second step secures blockchains from hackers. And it’s this second step that guzzles so much energy.
Blockchain calculations require huge amounts of energy. This is an Achilles’ Heel for blockchain development. Analysts estimate that Bitcoin soaks up as much electricity every year as all of Nigeria. Global Blockchain has found a solution, by ensuring a steady and reliable source of power. These realities make Global Blockchain’s Montana Agreement so significant.
On January 25, Global Blockchain also announced that it planned to spin out the value in its mining division. Through the arrangement, the company intends to list Global Blockchain Mining Corp., along with all of its mining interests, as a publicly listed Canadian entity. The company has set the shareholder meeting on this decision for April 10.
On January 23, Global Blockchain announced that it had invested $3 million into Breaking Data Corp., as part of the former’s foray into the GiveMeSport blockchain ecosystem. GiveMeSport’s content generates over 3.1 billion impressions, reaching over 119 million unique users per month on Facebook (NASDAQ: FB) alone. Global Blockchain and GiveMeSport are exploring synergistic partnerships whereby blockchain technology can enhance the user experience for GiveMeSport’s users.
On January 17, Global Blockchain said it will provide advisory services in connection with the recently announced KODAKOne Coin Security Token Offering. In addition, tZero will advise on secondary trading of the Kodak Coin. This is the first third-party coin to be announced that tZero will be listing and trading on its anticipated Initial Coin Operating (ICO) exchange.
The biggest stock story in recent weeks has been Eastman Kodak (NYSE: KODK). The storied firm has launched a cryptocurrency called “KodakCoin.” Think of it as digital money for photographers. The currency will be part of “KODAKOne,” the company’s new image rights and royalties management platform.
KodakCoin is a registered ICO. New cryptocurrencies have been the purview of microcaps. Kodak is the first major NYSE-listed corporation to implement a cryptocurrency.
On January 16, Global Blockchain agreed to invest $2 million into Millennial Esports Corp.’s previously announced private placement. The private placement is being made in conjunction with Millennial’s announced acquisition of an 82% interest in Eden Games. Eden Games’ popular mobile racing game, Gear.Club, has been downloaded more than 6.5 million times.
Global Blockchain would become the lead investor in this initiative and expects to make an initial $5 million investment into the token offering.
On January 11, Global Blockchain announced an investment of C$2 million in Spectra7 Microsystems Inc. (TSX: SEV) (“Spectra7”). Spectra7 provides high-performance analog semiconductor products for broadband connectivity markets.
In November 2017, Spectra7 announced new products predicated on blockchain-processing data centers. Data centers focused on blockchain processing are designed to enhance network and computational efficiency.
Investors who are put off by investing in cryptocurrencies can take a safer route, by getting onto the blockchain bandwagon. The popularity of blockchains is a boon for Global Blockchain. The technology behind blockchains also promises to transform information technology.
The IT Revolution
You might think cryptocurrecies are a fad – an asset bubble ready to burst. That may be so. But blockchain technology doesn’t care about the price of, say, Bitcoin. Indeed, cryptocurrencies have plummeted in price in recent weeks. But for companies in the vanguard of blockchain development, it doesn’t matter. That’s because the blockchain represents nothing less than an IT revolution.
Moore’s famous law was that transistor density would double every two years or so as chips became smaller and more could be packed onto wafers, making each new generation of chips roughly twice as powerful as the preceding generation. And invariably, the combination of more chips and increased power per chip overwhelmed demand, leading to sharp price drops and boom and bust cycles.
But two major developments over the past five years augur more dynamic growth. First has been a big ramp up in demand as chips have proliferated into new areas like artificial intelligence, blockchains, and the Internet of Things, coming on top of the continued growth in mobile devices and still steady demand for computers.
Rising demand is coming just as Moore’s law has reached limits. It’s not that transistors can’t get smaller; rather, it’s that starting in the early part of the century the costs of ever smaller transistors began to rise. At first the rise was relatively small, and overcapacity remained a problem. But as the ratio of price to computing power continued to gain, price gains in chips have been exceeding the extra processing power per chip.
Transistor density will continue to increase, but with much greater complexity and sharply rising costs. It’s not a coincidence that computer prices, which fell sharply through the 1990s and in the early 2000s, began moderating and last year began to rise.
The bottom line is that sharp increases in demand for greater calculating capability won’t be met by packing more chips onto wafers. Instead it will require more chips that are both more complex and costlier than earlier-generation ones. Suppliers will be hard pressed to keep up with burgeoning demand. The major reason for cyclicality in the semiconductor industry has ended, as chip customers no longer will get more for less but instead will get more for more.
That’s where blockchains come in. They possess an astonishing number of calculations, using ultra-sophisticated algorithms. Applied to the business world, they make multi-level tasks possible at faster speeds. Companies can use blockchains for inventory control, supply chain monitoring, HR record keeping – you name it.
To be sure, Global Blockchain entails risks. The company is small (market cap: $5.48 million) and its share price has a history of volatility. But that’s the nature of small-cap tech stocks.
For investors with strong stomachs and a willingness to tolerate additional risk, these breakthrough technology firms can significantly beat the broader markets. Global Blockchain’s sound balance sheet and portfolio of proven technology partners position it better than most of its peers.