Blockchain is being considered as a world-changing technology. It has a plethora of applications in various industries. However, it is observed that the majority of the Blockchain projects fail at the initial phase only. It may happen because most of the companies don’t know how to use this technology in the most effective way. Also, it is necessary to understand why most of the projects didn’t sustain. What are the mistakes that a company must avoid to make its project successful?
Though there are some challenges that exist in this field, companies can even get benefits from this technology. Here are some of the common mistakes that you should avoid in your Blockchain projects:
If the Concept of Blockchain is not clear
The majority of the Blockchain projects revolve around the decentralized ledger technology (DCT). This is one of the functions of the technology while others such as tokenization, decentralized consensus, and smart contracts were ignored.
People need to understand that DCT is one of its component, not the complete technology. Now, many of the organizations are not using the entire set of technology. They should understand that it is not a problem to start with DCT but they should also understand how to use the other functions as well to grab a proper benefit from it.
It’s a business solution, not an application
Various industries can use Blockchain for various situations, it is still a foundation-level technology and not a complete application. It lacks a user interface, data persistence, interoperability mechanisms, and business logic.
In the case of Blockchain, it is a general assumption that the technology is very close to the complete application solution. But that is not completely true. One should never assume that a protocol can solely handle the whole e-commerce system.
Considering Blockchain as a storage mechanism or database
Blockchain technology provides a trusted record among various users and not to act as a database manager. Right now, the technology does not have a create, update, read, and delete model like conventional database management software. It only supports Read and create.
The company should assess the requirement of the Blockchain projects because in some of the cases conventional database managers are more suitable.
Interoperability is not available yet
Blockchain technology is still in the development stage. That’s why interoperability is not possible in most of the cases. The company must be cautious while considering this feature. Moreover, you must not consider a platform with the hope that it will interoperate in the future with a different vendor.
Smart contract technology is not fully developed yet
Blockchain technology enables the most powerful feature called “Smart Contracts”. However, there are loads of challenges for Blockchain projects such as scalability and manageability. The company must do some R&D before initiating Blockchain projects. Moreover, it will transform in the near future.
Never ignore governance issues for Blockchain projects
Public Blockchains need governance from CIOs and its prime focus is technical issues. Whereas, the owner will handle the governance of the permission for private Blockchains. The company must take care of risk that may hinder the success of Blockchain technology due to governance issues. Larger organizations should especially give a thought about joining or forming a consortium for coming up with a governance model for public Blockchains.
It’s definitive that Blockchain technology is not that common right now but holds great potential for the future. Companies that are not considering it in their business need to rethink about their strategy. Moreover, who are already working on Blockchain projects need to work wisely and must avoid these mistakes.
If you are thinking about blockchain for your business, you need an expert. Drop a mail at [email protected] for any requirement.