Enterprise Blockchain Projects – Six Common Missteps

In emerging technologies, blockchains seem like they are the next big thing. However, proofs of concept typically fail to get past the first experimentation phase. Learning from earlier failures and the mistakes that were made is key for enterprises. The best way to learn from mistakes, is by learning from others. This guide has been constructed to highlight six common mistakes that are made frequently by enterprises.

1. Not correctly understanding blockchain technology, or misusing it

By adding trust to an untrusted environment, an enterprise can utilize blockchain technology well by exploiting a distributed ledger mechanism. Decentralization and tokenization are vital for an effective blockchain. Security conditions are relaxed by private blockchain deployments. This is done in favor of an identity management system that is centralized and consensus mechanisms that obviates the trust less assumptions.

2. Operating under the assumption that the current technology is ready for production use

The blockchain market currently is very new, therefore offerings are typically from start-ups and open-source initiatives. Henry Littleton, a writer for Academized and Australian Help reminds us, “enterprises need to understand that the majority of blockchain platforms are still in its infancy, and there are real time trial and error going on. Experimenting, proof of concepts, like in the context of open source, is ever-changing while this market is maturing.”

3. A complete business solution is confused with a limited, foundation-level protocol

The term blockchain is typically used in tandem with new solutions is areas like supply chain management. Also, usually what is being talked about in news stories doesn’t always match the market.

The way blockchain is talked about, leaders in the IT technology might believe the available foundational-level technology Is a complete application solution. In practice, however, blockchain has a lot of growing to take part in until its prepared to fulfill all of the technologies it’s suppose to. When thought of as a broad spectrum, ambitious block initiative, enterprises should think of blockchain portion to be no more than ten percent of the total project development campaign.

4. Considering blockchain technology as a static storage mechanic or only as a database

In the industry, IT leaders conflate “distributed ledger” with a data persistence instrument or DDMS (distributed database management system.) How it is done currently, blockchain brings in a sequential, append-only record of significant things that happened.

Offering finite data management abilities in exchange for a decentralized service, it avoids trusting a single central organization. Jonathan Timber, a business writer with Paper Fellows and Ox Essays exclaims,

“enterprises need to be aware of all the pros and cons and weigh them accordingly. This will ensure that blockchain is an adequate solution for your enterprise, in its current form.”

5. Believing that compatibility among platforms does not exist yet

Mentioned previously, most blockchain technologies are in the development stage of the life cycle. They lack specific roadmaps in terms of technology or business. Ledgers do not have inherent integration capabilities, and wallets have zero native fungibility. Standards for blockchain technology has not been developed yet.

That being said, assuming potential compatibility at the most rudimentary level, enterprises should view any discussions about interoperability with reserve. Even though there are many competing suppliers, the technology in its lifecycle is still maturing to a level where compatibility can be guaranteed. Therefore, you cannot expect that 2018 blockchain platforms to interoperate with blockchain technology from a different vendor a year in the future.

6. The distributed peer-to-peer network governance issues are ignored

Blockchain governance issues can bring many challenges to projects, even if there is a stable, functional technical foundation. Permissioned or private blockchains do not have a big issue with governance, as the appropriate entity will set a paradigm for the entire platform. However, governance is essential for public blockchain. For example, Bitcoin and Ethereum have already established governance, but it typically only focuses on technical problems. This leaves human motivations and behavior unregulated.

The six points in this article are designed to illuminate common mistakes by enterprises when incorporating blockchain projects. Sometimes you do not need to make the mistake to learn from it. Learn from other enterprises and their mistakes by following this list of common missteps.

About the author:

A marketing and tech writer with Essay Roo and UK Writings, Ellie Coverdale is highly involved in research based around technology and development projects. Coverdale loves researching new developments related to artificial intelligence and how it will impact an assortment of industries. Working as a writer for Boom Essays, she loves spreading her knowledge pulling from her diverse experiences.