by Analytics Insight

February 26, 2022

Beware of the top five common blockchain mistakes when integrating technology

Blockchain technology is booming in the tech driven world due to its smart capabilities such as faster transaction speed, low transaction fees, transparency, maximum cyber security and many more. But it is necessary to have a clear understanding of the difference between market trend and reality in line with an organization’s business objectives. Several organizations should be aware of the following common blockchain errors to avoid any serious consequences in the near future.

Not understanding/using Blockchain technology

Businesses and CIOs make one of the biggest blockchain mistakes by ignoring some of the crucial blockchain features. For example, smart contract capabilities, decentralized consensus, and tokenization barely find applications in modern blockchain projects.

Assuming fully prepared smart contract technology

Assuming that smart contract technology is mature is another mistake people make. While smart contracts are arguably the most powerful aspect of blockchain, as they are business automation applications that add dynamic behavior to transactions, problems remain.

Blockchain as a storage mechanism

Blockchain applications for secure exchange of information and storage of records in blocks create the source of blockchain errors. CIOs are usually confused about the difference between blockchain and distributed database management systems or DBMS. As a result, blockchain deployments can cause enterprise blockchain projects to be misaligned.

Confusing protocol with complete business solutions

Confusing protocol with enterprise solutions is one of the most common mistakes made by organizations. As blockchain is a foundational level technology that requires additional applications to meet specific business needs. While blockchain can and is used in a variety of scenarios ranging from supply chain management to data sharing between medical information systems, it must also include features such as user interface, logic business and interoperability.

Governance issues

Many new blockchain projects do not focus on dealing with governance issues. Considered one of the most common blockchain mistakes, blockchain governance issues are mostly dominant in public blockchains.

So, these are some common but costly mistakes that can lose blockchain motivation in an organization. It is necessary to have a deep understanding of blockchain technology before transforming business processes. Before believing what other companies are implementing, thorough research should be done, especially before deploying the first blockchain project.

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Analytics Insight is an influential platform dedicated to ideas, trends and opinions from the world of data-driven technologies. It monitors the developments, recognition and achievements of artificial intelligence, big data and analytics companies across the world.

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