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Top 6 Mistakes Enterprises Make When Exploring Blockchain Technology

Many companies around the world the world are keeping a very close eye on what is happening in the blockchain sector. Various enterprise projects make use of this technology, although not all of them are overly successful in their ventures. In fact, there are several common mistakes companies make while exploring the boundaries of blockchain technology.

6. Interoperability

For the longest time, companies have thought their blockchain-based project will work together with any other ledger in the world. Unfortunately, that is not the case as interoperability between different private blockchains is quite difficult to achieve. There is no such thing as blockchain “industry standards”, and competing supplies cannot assure interoperability by any means. Achieving such a standard will take at least a few more years.

5. Learning Curve

One does not simply wish a blockchain to be created, as there is a steep learning process associated with this technology. Experimenting with platforms, code, and new business models are of the utmost importance. This also applies to outsourced projects making use of this technology, yet many enterprises overlook the fact they need to monitor developments closely. Without doing so, their in-house staff will be none the wiser when it comes to dealing with the challenges posed by the project.

It is one thing to clone a cryptocurrency, which you can do in under an hour. However, when it comes to creating robust application on the blockchain one requires top level coders and project managers.

4. It’s Not a Database

According to quite a few enterprises, there are two use cases for blockchain technology. It is either a database or a storage mechanism, yet nothing else. Anyone thinking like this may want to freshen up on what a blockchain is capable of and how it can change business models once and for all. Moreover, the blockchain does not suit every business model, at least not in its limited current configuration.

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3. First Generation Problems

Even though it appears as if blockchains have been around for decades, the concept is still in its infancy stages. Future generations of blockchain technology will be capable of accomplishing much more compared to how they operate now. The current blockchain technology “level” is limited as to what it can do, it is not a mature technology right now, yet that doesn’t mean it has no business value either.

2. Production Use Isn’t Here Yet

As one would expect from a technology that has not matured yet, there are no “scalable” blockchains to be found. The best two options are Bitcoin and Ethereum, both of which still have some kinks to work out. Any other blockchain provider can claim their solution scales, although it remains to be seen how the technology behaves in a real-life environment. Progress can only be made through experimentation and developing new proofs of concept.

1. What Is The Purpose?

It seems rather difficult for most enterprises to answer the question of what purpose the blockchain fits for their business. If a project is to use blockchain technology effectively, one must first know what purpose it will serve. Private blockchain lowers the barriers to entry in the security department, yet they also focus more on centralization. All enterprises need to do their homework on what they expect from a blockchain before actively working on an implementation.

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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