See how one investment fund breaks down blockchain, identifies use cases and builds a game-changer.
So, you want to invest in blockchain? And you want to do it in a more meaningful and targeted way than just buying Bitcoin?
That’s when you run into a shopping list of obstacles.
- It’s still an immature technology, making it difficult to pick winners.
- Decentralisation and public blockchains systems are a novel area, and no one’s entirely sure which way it’s going to go in the long run and what the best use cases will look like.
- The rampant speculation in the space has distorted a lot of things well beyond their real value, making it hard to gauge worth.
- Individual solutions will often require entirely separate infrastructure projects to achieve their own goals.
- The most immediate blockchain applications – hybrid blockchain models targeted at specific business problems – are being snapped up by large existing companies.
Trying to invest in the next wave of blockchain, in the form of novel solutions based on public blockchain-level trust, means finding a strategy that lets you overcome some tough challenges.
For a better understanding of the space, Finder spoke with Bicameral Ventures, an investment fund that has grappled with these issues and emerged with its own take on investing in blockchain, condensed here.
The first step is naturally to get an understanding of what problems blockchain can solve, and try to define them in a meaningful way. And Bicameral Ventures started, as many blockchain adherents do, with the concept of trust.
Step 1. Define what blockchain can actually do
Step back and look at what exactly blockchain can theoretically do, and to assemble a shopping list of the actual solid functions that blockchain enables.
On this step, Bicameral Ventures assembled the following:
- The ability to audit.
- Instant settling of transactions.
- Reliable smart contracts…