Decentralization means delegating or distributing the activities of an organization to several entities. In short, no central entity is controlling the process. Decentralization in particular has huge applications in computer science and digital economics. Contrary to regular currencies like US Dollar or Euro, which are actual physical money printed by a central authority, a cryptocurrency is a decentralized money created from thin air and not backed by any government or bank. The foundation on which cryptocurrencies exist and operate is blockchain technology; a decentralized network on which the information is not stored in huge data centers, but distributed among nodes and users.
Blockchain technology and its numerous applications have gained massive attention from programmers, developers, investors, and most certainly from corporations. The hype that started years ago has by no means died out and more people are joining in to partake in the boom. On the other hand, corporations have long-term hopes and plans for the future of blockchain technology and are either integrating the technology into their own platforms or investing in related companies.
Company’s Investments in Blockchain
According to a study by Blockdata which analyzed blockchain investment activity of the top 100 public companies (by market capitalization), a whopping $6 billion was invested in blockchain companies by 40 of the biggest corporations in the world between September 2021 and June 2022.
Samsung was found to be the most active corporation by investing in 13 companies. The next spot belongs to UOB investing in 7 companies, followed by Citigroup with 6 investments, and Goldman Sachs with 5. As stated by Blockdata, since these companies participate in funding rounds with several or many other investors, it cannot be determined exactly how much money these corporations have invested. But total funding amounts of the rounds they participated in can be looked into.
The investors active in the biggest funding rounds are Alphabet ($1,506M in 4 rounds), Blackrock ($1,171M in 3 rounds), Morgan Stanley ($1,10M in 2 rounds), Samsung ($979M in 13 rounds), Goldman Sachs ($698M in 5 rounds, BNY Mellon ($690M in 3 rounds), and PayPal ($650M in 4 rounds).
Giant companies investing in Blockchain
A total of 61 blockchain/crypto companies are active across more than 20 industries and 65 use cases and received investments across 71 investment rounds. The hype around non-fungible tokens or NFTs and their numerous applications especially in the gaming industry and metaverse platforms have attracted many companies and organizations to invest in NFTs or to create marketplaces for trading them. Nineteen companies including gaming, arts & entertainment, and distributed ledger technology (DLT) offer some type of non-fungible tokens solutions and services. Twelve companies are essentially marketplaces; some allow users to trade NFTs. Eleven firms provide gaming services.
Each corporation has taken a different approach to investing in blockchain technology. Samsung for example has made investments in different use cases including blockchain services, development platforms, NFTs, and social networks. Companies like Alphabet and Blackrock however, have their resources focused on fewer areas. According to Sundar Pichai, Alphabet was investigating how to integrate blockchain technology into its services like YouTube and Google Maps.
With the rise in demand by clients, banks are now trying to include blockchain-related services as well, such as making investments in crypto custody, asset management, and trading.
The top corporations in the world are investing huge sums of money into blockchain technology, either by pouring money into their blockchain-based platforms and applications or by investing in other smaller companies and in some ways outsourcing specific problems that are deemed to be solvable by blockchain technology. This is fantastic news for companies and firms that provide such services and are looking to receive funds from the top 100 public companies.
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