9 Blockchain mistakes and how to avoid them
These days, lots of companies are implementing the blockchain technology with the hope of discovering opportunities to create differences in their regular business process. Unfortunately, a lot of these implementations never get past of the production stage. While the technology comes with lots of potential enough to attract business leaders, there’s a significant gap between that hype and market reality. If you too are thinking of implementing blockchain technology, here’re nine of the most common mistakes and ways to avoid them.
1- Considering it as a complete application
One of the biggest reasons behind the failure of many blockchain projects is that businesses often consider it as a complete business solution, which isn’t true. While the technology can be used in a diverse range of scenarios and industries, it doesn’t come with features like business logic, user interface, interoperability mechanisms etc. So, it’d be wise to consider blockchain as a protocol that can be used within a full application.
2- Considering it as a pure storage mechanism
Blockchain was designed to offer an immutable, trusted, and authoritative record of events triggered by a collection of untrusted parties. In its present form, blockchain technology doesn’t come with the key features of a traditional database management technology. So, you should review your data management requirements of the blockchain project and implement a traditional data management solution when required.
3- Assuming it as a permanently dominant technology
Businesses often assume that blockchain will always remain a dominant technology, which isn’t true. It’s evolving constantly in both application and technology and thus, it’s important to consider it as a short-term option to attain a business solution.
4- Assuming the smart contract technology is mature
Business leaders sometimes assume that smart contracts are fully matured, what they aren’t. They may demonstrate the most powerful aspect of the blockchain, but conceptually they’re software scripts. So, instead of planning for full adoption, you should run small experiments first.
5- Assuming the presence of interoperability standards
While some vendors of blockchain platforms may try to promote interoperability standards, it’s difficult to envision when most platforms are still being developed or designed. So, it’d be wise to consider the discussions about interoperability as a marketing strategy as it may not be able to necessarily deliver the benefits you’re looking for.
6- Overlooking the governance issues
Blockchain may seem a less expensive option than others, but it raises lots of questions regarding governance issues. As it’s still in the nascent stage, it may not be possible to predict all possible scenarios and thus, it’s recommended to plan thoroughly and look at it as a short-term option.
7- Confusing the future with the present-day scenario
It’s crucial to ensure that your plan for blockchain implementation with its evolving capabilities. It’s still limited in scope and you shouldn’t consider it as a way to deal with a global scale platform economy.
8- Ignoring the importance of a learning process
As with all other technologies, blockchain also comes with a learning curve which is often overlooked by businesses. It’d be wise to take a hands-on approach to the blockchain projects to make the implementation successful.
9- Overlooking the actual purpose
You shouldn’t take on a blockchain project as it’s trending. Instead, you should review the core intentions of it to get the most out of it.
If you’re at the verge of implementing a blockchain project, keep in mind the above rules and you should be able to sail through effortlessly.
To learn about blockchain, click here and read our another article.