Google and Goldman Continue to Invest In Blockchain

The more you learn about bitcoin and blockchain technology, the more fascinating it is. For example, during the weekend I learnt of the Lighting Network.

The Lightning Network

Just like the traditional blockchain, the Lightning Network allows peer to peer tractions. However, unlike the blockchain which does take time to process transaction, the Lightning Network makes payments instant.

Without getting too technical, the Lightning Network is dependent upon the underlying technology of the blockchain. By using real bitcoin/blockchain transactions and using its native smart-contract scripting language, it’s possible to create a secure network of participants which are able to transact at high volume and high speed.

But it’s not just me learning more and more about cryptos every day. Goldman Sachs Group Inc. [NYSE:GS] and Alphabet Inc. [NASDAQ:GOOG] are extremely active in developing and learning more about what a distributed ledger could do for their business.

As reported by Bloomberg:

Lloyd Blankfein last week tweeted that he’s “still thinking about #Bitcoin,” but the bank he leads is doing more than just thinking about the technology that underpins the cryptocurrency.

Goldman Sachs Group Inc. is the fifth most active corporate blockchain investor, with involvement in four companies focused on the distributed-ledger technology since 2012, according to a report by tech researcher CB Insights. The bank’s investments include software developer Digital Asset Holdings, payments company Circle and Axoni, which provides blockchain infrastructure for capital markets.

Japanese broker and venture capital firm SBI Holdings Inc. tops the list, with investments in eight blockchain companies, including cryptocurrency exchange Kraken and Ripple, which provides banks with money-transfer technology. Alphabet Inc.’s Google comes in second, with six investments that span data storage provider Storj, cryptocurrency derivatives-trading platform LedgerX and merchant services with Veem. Inc., which last month said it’s opening a cryptocurrency exchange, and Citigroup Inc. are the third and fourth most active.

Bitcoin’s Corporate Following

The largest US corporations are following Goldman and Google in their bitcoin pursuit. 10 of the largest US banks have already invested US$267 million in six blockchain companies and one consortium.

Want to learn more about this amazing bitcoin technology race? Click here.


Härje Ronngard,

Junior Analyst, Money Morning

Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

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