In today’s Money Morning…turning ‘DeFi’ apps into gold…making blockchain for the masses…you can’t afford to ignore it…and more…
On Tuesday, Microsoft Corp [NASDAQ:MSFT] showcased once again why it is a force to be reckoned with.
Posting revenues of US$41.7 billion, with an operating income of US$17 billion for the most recent quarter. Both of which are up 19% and 31% respectively.
The kind of cash flow that truly boggles the mind.
But that is exactly what you should expect from a company valued at US$1.92 trillion. Which, when converted to AUD, works out to $2.46 trillion. A larger sum than the market cap of the entire ASX, which sits at $2.3 trillion…
Suffice to say, Microsoft carries a gargantuan valuation, but it has the earnings to back it up.
And this shouldn’t really come as a surprise. After all, without Microsoft the computing revolution may have been very different. Perhaps it may not have even happened at all.
Because while Microsoft certainly didn’t invent the machines or technology at the heart of computing infrastructure, they did make it more accessible. Becoming one of the early pioneers to recognise the importance and potential of an operating system.
Windows is the reason every home and office now has some sort of computer.
Making it easier for the layman to use the incredible technology that is a computer. Opening a world of possibilities for others to innovate with. And that’s a large reason why today Microsoft is as successful and as profitable as it is.
They enabled the computing revolution by bringing it to the masses.
And today, I want to tell you about the company that is doing the same thing for blockchain…
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Turning ‘DeFi’ apps into gold
Overnight, while most of the market was fawning over Amazon’s results, a small blockchain start-up announced it had raised US$80 million. Securing these funds through a Series B funding round that has attracted some big-name investors.
More importantly though, according to insider sources reported by TechCrunch, demand far exceeded this US$80 million sum. Apparently, this start-up had more than US$300 million worth of capital waiting to get a piece of the pie.
A telling sum when you consider the fact that the company has only been valued at US$505 million.
But I don’t expect it will stay that way for long. Because in the not-so-distance future, I expect this start-up could be just as well-known as its tech predecessors. A household name that may stand alongside Microsoft, Amazon, or Apple.
And the name of this company (fittingly) is Alchemy…
So, what does Alchemy do?
Well, as I alluded to earlier, Alchemy is doing for blockchain what Microsoft did for computing.
Making this complex technology accessible and scalable for everyone. As co-founder Nikil Viswanathan explained to TechCrunch back in late 2019:
‘It’s 1972. Who used computers? Only computer companies. By 2019, the entire world. In 1992, who used the web? Only internet companies. By 2019, the entire world. In 2019, who uses blockchain?’
Inferring that the widespread adoption of blockchain is on its way. A technology that will become just as common and ubiquitous as the computer and internet has become.
How Alchemy plans to make this happen is by becoming the preeminent blockchain infrastructure platform. Offering tools for developers to quickly gain access to blockchain nodes and develop their innovative ideas from there.
For the budding decentralised finance (DeFi) industry, this platform and the tools behind it have been invaluable. Because as Bloomberg reported back in March, all the major non-fungible token (NFT) projects rely on Alchemy.
And for a refresher on what the hell a NFT is, I suggest you check out our article on them from last year. You can find it here.
Making blockchain for the masses
Now, as for why you should care about any of this, well it’s simple.
Alchemy is the missing link that blockchain has sorely needed. The intermediary that should hopefully turn this technology from a fringe idea into a full-fledged revolution.
Because as grand and exciting as the blockchain and DeFi ecosystems may be, they’re useless if your typical user can’t engage with them. Which is why you need the backend infrastructure to not only bring these ideas to life, but also to make it easier for everyone to access.
And it is precisely because Alchemy exists, and is frantically growing, that I can say that blockchain solutions and DeFi aren’t just a pipedream anymore.
As you’ve heard us reiterate and reinforce over the past week or so, change is on the horizon.
Not just in terms of a cryptocurrency boom, but an entire reordering of the financial industry. Bringing an entirely new, decentralised paradigm to a sector that is sorely in need of it.
A change that will hopefully be able to right a lot of the egregious wrongs we’ve seen in recent years.
More importantly though, just as the computer and internet opened new avenues for innovation, so too will blockchain. Allowing bold new ideas to become reality. Ideas that may offer solutions that transform the very fabric of society over the next decade. Like we’ve seen with the digital transformation of the 2010s.
Granted, there are bound to be challenges, both new and old. But that’s all just part of the process.
The important part is that this process is underway. And, by the looks of things, can’t be stopped.
Like it or not, blockchain is here to stay. With companies like Alchemy only serving to speed up the adoption of this exciting new technology.
So, you can’t afford to ignore it.
Because no matter what you may think of cryptocurrencies like bitcoin, or NFTs, or even DeFi — there is no stopping the blockchain boom.
Tune in tomorrow to learn more about how you can ensure you’re not left behind before the boom really takes effect.
Regards,
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Ryan Clarkson-Ledward,
Editor, Money Morning
PS: Promising Small-Cap Stocks: Market expert Ryan Clarkson-Ledward reveals why these four undervalued stocks could potentially soar in 2021. Click here to learn more.
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