One of the most disruptive technologies in the present digital age, blockchain has already achieved mainstream relevance. The underlying platform behind cryptocurrencies is finding its uses across countless domains with BFSI, supply chain, digital assets, and gaming as the most prominent ones. A notable majority of technology officers in a survey acknowledged interest in incorporating the technology in their existing architecture. Though revolutionary in nature, it is crucial to remember that blockchain is not a comprehensive one-size-fits-all solution for all infrastructure worries. There are areas where blockchain can optimize and reduce operational costs. However, the technology is not applicable across all areas. This article will cite the top 5 mistakes to avoid while integrating blockchain across business platforms.
Signs To Check Before Starting a Blockchain Setup
Global business research firm Gartner reports almost 90% of enterprise-grade blockchain projects to become unsuccessful within 2 years of incorporation. It is thus crucial to consider blockchain’s potential role within your organization. Before considering the viability of the technical solution even at a proof-of-concept stage, it is essential to have a firm grasp on what blockchain actually does, and is the efficacy of the solution across in real-time.
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a) Misinterpreting Blockchain Functions
Blockchain comprises Distributed Ledger Technology that keeps real-time transaction records across a digital ledger. Projects successfully incorporating blockchain strangely feature trust across trustless environments. The projects also make use of the digital ledger, as explained earlier. Force including a blockchain POC just for the sake of imbibing blockchain features is neither feasible nor justifiable.
b) Expecting Blockchain to Cure Everything
Though a versatile technology capable of contributing across multiple domains, we must not forget that it is a new-age technology that is still under development. This phenomenon is not uncommon across other technical applications. The uses of voice-based AI assistant technologies like Alexa and Siri were discovered years after their algorithms were completed.
Investing in conceptual projects is a great way to stay ahead of the competition. But, only after acquiring a proper grasp of the technology’s limitations and applications. Enterprises may acquire private blockchains without planning or having the necessary tools for intercommunication across the network.
c) Having a Limited Idea of Blockchain’s Potential
The perception of blockchain plays a crucial role in its possibilities. Merely consider it as a ledger for storage or database limits its usage. There are countless ways the blockchain can be used.
Inspired areas of blockchain usage include the healthcare sector, space research, governance, vote-tracking, smart contract agreements, loyalty rewards, law enforcement, carbon reduction, and more. In addition, blockchain is the pillar stone of revolutionary upcoming technologies like Web 3.0 and the metaverse. The limits are practically endless for a team with the proper vision.
d) Expecting Quick Returns
Blockchain platforms need time to mature and deliver returns. While Gartner predicts that most existing blockchain business projects will result in failure within the upcoming 2 years, the approximate time for ROI is also the same.
With the technology being new, it is difficult for companies to properly assess and compare returns with others, as there are little to no standardized norms. The current stage is all about exploring opportunities and building a solid foundation for long-term returns.
e) Opting Blockchain Developers with Negligible Experience
Building up an entire blockchain development team is usually not recommended if the enterprise hails from another domain with separate business objectives. The multi-step process will include recruitment, training, R&D, trial and error- all contributing to an inefficient methodology. The better option is acquiring the services of professional blockchain development companies.
Top-rated blockchain development companies such as Hashcash Consultants converge most of their efforts towards blockchain platform development for corporate enterprises. The US-based company has deployed products and solutions in over 26 countries across more than 6 continents and multiple industry domains. The experience, combined with a commitment to innovation and excellence enables the company to deliver exceeding expectations each and every time.
Without a doubt, blockchain is the technology of the future. However, its potential should not factor solely in a complete overhaul of the existing enterprise infrastructure. Companies should not attempt incorporating the blockchain platform across all departments. Adapting a short-term agile strategy is rather the preferred approach.