5 Mistakes Made by Blockchain Projects
October 27, 2017
In this article, we will cover five of the main mistakes seen in business and enterprise-based blockchain projects.
- Following the trend, yet misunderstanding the purpose of blockchain technology.
Many companies are trying to implement blockchain projects because of the trend. However, many companies fail to carefully research the main purposes and limitations of this technology. To make a project successful, it is necessary to carefully study the base technology that it will rely on.
2. Failing to thoroughly research smart contracts.
Smart contracts are a marvel of technology, unfortunately they have some disadvantages. These include a lack of manageability, auditability and scalability. Additionally, in most cases it turns out that there is a lack of legal framework for the operation of such contracts. That is why if a project involves them, developers need to provide both operational and policy management.
3. Assuming that the technology is ready to use by the public.
Everyone wants blockchain technology to go mainstream, yet the technology is still in its beginning stages. Deploying a blockchain-based project to the public without prior testing, education and research can lead to disaster. More than that, its use needs to be accounted for from a legal and regulatory perspective.
4. Outsourcing and failing to educate the company and the public.
Because of a lack of experience, several companies may go ahead and outsource the development of blockchain, that is based on technology. It isn’t a problem, but not incorporating a learning curve for both the company and the public is the perfect recipe for a failed project. Companies should be well aware of the current limitations of their blockchain software, moreover, they should carry out experiments with different varieties of code, business models and platforms to achieve success.
5. Seeing blockchain technology as a storage tool.
While the blockchain can definitely store data, its data management capabilities aren’t as good. That is why implementing this technology for the sole purpose of keeping records may not be the best choice. So, development teams should make sure that the use of the blockchain for this purpose really benefits the current state of the company.