Cryptocurrencies have been one of the more controversial topics on Wall Street in the past couple of years. However, technology experts say there’s no arguing the value of the blockchain infrastructure at the root of currencies like bitcoin. The innovative part of the complicated blockchain system is its reliance on distributed ledger technology to independently verify transactions. Bank of America analyst Kash Rangan[WD] says blockchain systems will eventually be embedded in every software platform, making it an incredibly valuable investment opportunity. Blockchain is a brand new technology, but the following seven companies already have blockchain offerings on the market.
According to Rangan, IBM (IBM) has fully embraced blockchain technology. Rangan says IBM’s Hyperledger Fabric blockchain operates on a scalable, low-latency infrastructure and includes 35 live networks and more than 400 engaged clients. IBM has more than 1,500 employees devoted to blockchain technology, and its Hyperledger developers have created 5 million lines of code. IBM is tackling what it sees as $400 billion in market inefficiencies that blockchain could address. Rangan estimates blockchain alone already contributes more than $7 in per-share value for IBM. Bank of America has a “buy” rating and $200 price target for IBM stock.
Microsoft Corporation (MSFT) has been exploring blockchain technology since 2015. Its blockchain-as-a-service offerings for Azure aim to help companies improve the security of their business transactions by leveraging the power of the blockchain model. Microsoft is an exclusive partner with India’s BankChain, a consortium of banks utilizing blockchain technology to fight money laundering, financial terrorism and customer fraud. Microsoft has also partnered with Groupe Renault to create the first tamper-proof and secure digital car maintenance ledger that operates on a blockchain system. Bank of America has a “buy” rating and $134 price target for MSFT stock.
Oracle Corporation (ORCL) offers Blockchain Cloud Service solutions as part of its platform-as-a-service portfolio. Oracle BCS applies blockchain technology to help applications securely and accurately perform identity authentication, information sharing, single sign-on, smart contract creation and other tasks. Oracle says BCS creates value by accelerating transactions and reducing costs. Oracle has also been part of the Hyperledger Fabric project for over a year. The company is currently collaborating with Infosys Ltd. (INFY) to develop BCS for enterprises, which will help companies improve transaction privacy and database interoperability. Bank of America has a “neutral” rating and $55 price target for ORCL stock.
4. Red Hat
Red Hat (RHT) was…
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