by Analytics Insight
February 26, 2022
Beware of the top five common blockchain mistakes while integrating the technology
Blockchain technology is thriving in the tech-driven world owing to its smart capabilities such as faster transaction speed, low transaction fees, transparency, utmost cybersecurity, and many more. But there is a need to have a clear understanding of the difference between the market trend and reality in sync with the business goals of an organization. Multiple organizations need to be aware of the following common blockchain mistakes to avoid any serious consequences in the nearby future.
Fail To Understand/Use Blockchain Technology
Enterprises and CIOs make one of the biggest blockchain mistakes by ignoring some of the crucial blockchain features. Such as, smart contract capabilities, decentralized consensus, and tokenization barely find any applications in modern blockchain projects.
Assuming Fully Baked Smart Contract Technology
Assuming that smart contract technology is mature is another mistake people make. While smart contracts arguably represent the most powerful aspect of blockchain because they are business automation applications that add dynamic behavior to transactions, problems remain.
Blockchain As Storage Mechanism
The applications of blockchain for secure information exchange and storing records in blocks create the source for blockchain mistakes. CIOs are generally confused about the difference between blockchain and distributed database management systems or DBMSs. As a result, blockchain deployments can result in the lack of alignment of enterprise blockchain projects.
Confusing Protocol with Complete Business Solutions
Confusing protocol with business solutions is one of the most common mistakes organizations make. As blockchain is a foundational-level technology that requires applications on top of it to fulfill specific business needs. While blockchain can and is being used in a variety of scenarios ranging from supply chain management to sharing data across medical information systems, it must also include features such as user interface, business logic, and interoperability.
Governance Issues
Many new blockchain projects do not focus on managing governance issues. Considered as one of the most common blockchain mistakes, issues with blockchain governance are primarily dominant in public blockchains.
Thus, these are a few common yet, costly mistakes that can lose blockchain motivation in an organization. It is required to have an in-depth knowledge of blockchain technology before transforming business processes. Before believing what other businesses are implementing, thorough research should be conducted, especially before deploying the first blockchain project.
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