If you’ve stumbled across this article it is likely that you’ve read about Enterprise Blockchain and its applications but wants to know how it may negatively impact your business. While Blockchain projects have been adopted by businesses big and small, there remains a significant knowledge gap between the theoretical and the practicality. We have compiled a list of six pitfalls to avoid when adopting Enterprise Blockchain into your business.
1. Misunderstanding or Misusing Blockchain Technology
Year upon year, more organizations are using proof of concept solutions to understand the future applications of Blockchain. However, based on industry research, we have identified that Blockchain’s most innovative characteristics are not being utilized by those organizations. This highlights whether these organizations truly need Blockchain as they aren’t using it to its full potential.
2. Assuming That Current Technology Is Ready For Production Use
The majority of Blockchain projects are made up of open-source, community-driven components and aren’t being constructed for single client use. It would be safe to assume that in January 2021, most blockchain platforms are 12 to 13 months away from being fully operational.
3. Confusing A Limited, Foundation-Level Protocol With A Complete Business Solution
The hype surrounding Blockchain gives a false impression that the foundation-level technology is a solves-all, application solution. While it has proven to show benefits within both supply chain management and operations, Chief Information Officers (CIO’s) should not rely on Blockchain as a complete management system for their business as the full-stack requires a multilayer stack built on a base foundation layer, with application frameworks and horizontal systems middleware.
4. Viewing Blockchain Technology Purely As A Database or Storage Mechanism
Since the inception of Blockchain, what sets it apart from similar systems that have come before it is that it maintains a single version of the truth. If CIOS begin using Blockchain as a large-scale distributed database management system, this is when Blockchain projects will become mishandled and quickly fall apart.
5. Assuming That Interoperability Standards Between Blockchain Platforms Exist
This is becoming an increasing concern for top industry decision-makers and CIOS. Organizations do not want to be in a position in which their chosen Blockchain platform disrupts expansion and potential for collaboration in the future. While many of us cannot yet predict the future market, it would be wise to go all-in on one Blockchain platform with the assumption that it will interoperate with future Blockchain technology.
6. Assuming That Smart Contract Technology Is A Solved Problem
As a way of tracking, valuing, and assigning assets – Smart Contracts is a sure-fire tool for Blockchain technologies. However, an issue that CIOS should consider greatly is that Smart Contracts are severely underdeveloped. Specifically, it can be difficult to understand what would happen if there were an error in a line of code. Concerning blockchain, and linking several transactions, the program may just stop running or snowball into causing catastrophic liabilities and losses for your business.