Top mistakes to avoid in a Blockchain Project
It is critical for any company to avoid pitfalls that could result in the disillusionment and failure of their Blockchain projects. Do your research to ensure you are aware of what is being done in blockchain right now, what is a reasonable expectation for this emerging technology, and the common mistakes that can lead to frustration and failure in your planned projects. In this article, we covered the most common mistakes that could cause a project failure, and gathered helpful insights from our experts on what you should be doing to ensure the success of your blockchain campaigns.
These are some of the common, but expensive, mistakes that can kill blockchain momentum within an organization. Failing to plan the sources to finance a blockchain project is also one of the common blockchain mistakes. Moreover, a bad project vision may also result from a lack of understanding about how blockchain works and what is required for it to run full-speed. CEOs may frequently conflate distributed database management systems (DBMSs) with blockchain technology, which results in poorly aligned corporate blockchain projects.
Organizations rarely employ full-featured blockchains, except for shared recordkeeping and asset tracking, supported by distributed ledger technology (DLT) data structures, leading to questions about whether these organizations require blockchains at all. Most blockchain projects are used to record data in the blockchain through distributed ledger technology (DLT), but they neglect features like decentralized consensus, tokenization, or smart contracts. While blockchains can be, and are, used for various scenarios, from supply chain management to data sharing between health IT systems, blockchains must also incorporate features such as UI, business logic, and interoperability. Various industries may be using blockchain in different situations, but this is still a fundamental technology, and not a full-fledged application.
Scope of blockchain
As Blockchain is a foundation-level technology, applications on top of it are needed to meet the needs of a particular enterprise. Given the way blockchain is talked about, IT leaders may believe throttling is basically an end-to-end application solution. Because blockchain is frequently discussed to address problems in supply chain management or health care systems, the implicit assumption is that the foundational level of technology is not all that far away from being a full-blown application solution.
“Do your research to ensure you are aware of what is being done in blockchain right now, what is a reasonable expectation for this emerging technology, and the common mistakes that can lead to frustration and failure in your planned projects.”
Limitations of blockchain
While it is smart to begin investigating blockchain and testing in PoC, it is important to understand its limitations and to be aware of the fact that its use cases are still being developed. In reality, there is still much evolution that needs to happen for blockchain before it is ready to meet the full potential of this technology. Like any other new technology, blockchain is bound to have growing pains - but this does not mean blockchain is not going to be a worthwhile, practical technology to embrace.
Pick right platform
Never choose a blockchain platform with the expectation that it will be able to interface with the next years technology from another provider. Do not choose a single blockchain platform for a project this year with the expectation that it will interoperate with next years blockchain technology from a different vendor.
Cross Technology Integration
Most blockchain products are still being developed, so do not assume any single service will be able to interoperate with others in the future. While there are several competing vendors, blockchain has not yet matured to the point that it is guaranteed to be interoperable. Most blockchain services and technologies are far too immature to handle large-scale production jobs, which would require the provision of network security and governance services.
Scalability & Governance
Smart contracts are arguably the strongest aspect of blockchain-enabled technologies, but scalability and governance are still major challenges, and it will take two to three years to mature. Smart contracts will mature over the next three to five years, but companies need to exercise caution in developing them within current blockchain offerings, and get legal counsel about their use. Users will need to understand how to run smart contracts (which use the blockchain to automatically perform specific actions when contract terms are met), but will not need specialist knowledge about the intricacies of distributed ledgers.
Avoiding the blockchain mistakes that erode blockchain features and the wrong approaches for understanding blockchain deployments may increase your chances for success with your blockchain projects. Common mistakes that frequently slip under the radar of developers and blockchain professionals can make a difference between successful and failed blockchain projects.
Bit about Kocha Technologies
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