There is no denying that Blockchain is taking over at the moment. Many companies are implementing the Blockchain because it promises a lot of potential. However, unfortunately, there is no denying that a lot of projects do not make it past the production stage. With that being said, continue reading to find out more about the common Blockchain mistakes that companies often make.
Failing to understand or overlooking the purpose of Blockchain technology – A lot of companies enter into a Blockchain project because it is “the thing to do” at the moment. However, this is not the right attitude to have. You need to have the core purpose of Blockchain in mind when you generating a project that implements the Blockchain. You need to add trust to any untrusted environment if you are to get the most of Blockchain and the technology you are going to be utilising.
Insufficient resource investment – A lot of Blockchain projects do not have the resources in which to invest. It is all about three critical components: knowledge, money, and time. It is worth devoting a sizable amount of time to locating and involving professionals from with your team.
Wrong statement of project – If you are implementing a Blockchain project, it is of huge importance that you put together a statement of project during ICO/Token introduction. This must include the meaning, mission, and specific goals of the project.
Viewing Blockchain technology simply as a storage mechanism or database – You must recognise that a distributed ledger is not the same as a distributed management system, The Blockchain provides a limited amount of capabilities in data management in exchange for a service that is decentralised. It is not wise to use blockchain to replace a distributed database. You need to figure out how Blockchain will fit into your information management needs.
Fear of making mistakes and lack of patient – Short-term trading has been awoken due to the fact that individuals are inundated with fast selling and buying proposals. This is a method that can result in you going broke. You need to trade with a view of getting good interest on your money.
Making the assumption that current technology is ready for production utilisation – While there is no denying that some companies are ensuring Blockchain as a mature technology. Only Ethereum and Bitcoin are proven at any scale. There are so many different Blockchain platform technologies, and this is something you will see when exploring Blockchain technology investing in further detail. However, proofs of concept based on ‘test and learn’ outcomes and multi ledger experimentation are a must.
As you can see, there are a number of different mistakes that companies often make when it comes to Blockchain. Hopefully, you can learn from the errors that other businesses have made, rather than making these mistakes yourself.