The hype around blockchain technology is something people are passionate about. Many blockchain enthusiasts openly claim the efficiency of blockchain functionalities like enhancing transparency in the governance process, developing new cryptocurrencies, and better supply chain management. However, the proof of concept is applied in various industries establishing blockchain dominance.
Those organizations not undertaking the development of test projects face an increased risk of losing their market benefit. We can understand that blockchain technology is everywhere by determining all these things. Besides its benefits, it is also essential to reflect on blockchain’s dark side and mistakes. Blockchain professionals should be aware of common mistakes that can soon bring severe consequences.
Mistakes that Blockchain Professionals Should Avoid
Undoubtedly, people are attracted to blockchain technology and its applications. But, blockchain projects don’t see the light of day due to these misconceptions regarding technology and mistakes made by developers. A closer overview of the common blockchain mistakes supports organizations in avoiding them with a proactive approach.
Smart Contracts Currently Replace All Paper Based Legal Contracts
A smart contract is a code that automates legal events and actions that are part of an agreement. However, the primary purpose of smart contracts is to minimize the need for trusted intermediaries, avoid fraud, and minimize arbitration costs. Still, smart contracts have not approved the agreement by law, but some countries are an exception.
Smart contracts are the most potent application of new blockchain technology that adds dynamic behavior to transactions. Also, it is understood that stored procedures which are linked with particular transaction records. But, it is not a stored procedure in a centralized system but is executed by all nodes in peer – to – the peer network, which causes challenges in scalability. The technology will undergo multiple changes; thus, the CIO should not ultimately adopt and run a small experiment.
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Inadequate Investment in Resources
Various blockchain professionals need clarification regarding the sections in which they should invest their resources. Similarly, a lack of clarity regarding resources, knowledge, time, and money is a huge roadblock. Hence, businesses should look at investing significant time in considering and bringing real business professionals into the blockchain team—one of the leading causes of confusion regarding blockchain projects is that it requires programming skills.
There is a common assumption that blockchain projects focus only on programming skills. But, the blockchain-specific programming language accounts for only 10% of code scripted for blockchain solutions. At the same time, businesses should note that the usual blockchain mistake is to compensate lack of resources. For instance, if the company needs to gain marketing skills, then introduce professionals to the team. The roadblocks in a development project are solved by taking recommendations and professional advice.
Assuming Technology is Ready for Production Use
The market for blockchain platforms is large and diverse. It’s mainly made up of scattered offerings that attempt to differentiate themselves differently—some focus on confidentiality, others on tokenization, and others on universal computing. Many still need to be ready for large-scale production. This will change in the coming years. CIOs need to keep an eye on the evolution of blockchain platforms and plan their blockchain projects accordingly.
Not Using Blockchain Protocols
Decentralized ledger technology is the primary use of blockchain in enterprises. The biggest mistake with blockchain is ignoring other features such as tokenization, Smart Contracts, and decentralized consensus. These features are rarely used in projects. This confusion about protocols is most prevalent. Developers believe that blockchain is a complete application that allows them to develop solutions that meet their needs. It should use to integrate required functionalities into an app solution.
All organizations are not using Blockchain Technology. This raises questions about whether or not they need it. Professionals should thoroughly research the possible uses of Blockchain technology within their organizations before deciding to adopt it. It is easier to transition seamlessly into projects that will utilize a variety of Blockchain features if you are clear about the purpose of the Blockchain Use Case.
Lack of understanding about protocols is the most common reason people must be aware of different blockchain functions. If enough people know the correct protocol, blockchain technology will use in many ways in healthcare and logistics.
Believes Blockchain Governance Issues can’t Resolve
The owner authorizes the private blockchain. A supply chain consortium includes various members, and its development firm is head of onboarding, verifying financial information, and resolving disputes. Primarily, blockchain regulations are governed by public blockchains like Bitcoin and Ethereum. Most of the governance issues are technical, and focusing more on fixing this problem is demotivating for companies to invest in blockchain projects.
But, the governance issues can be resolved when large organization companies participate in the blockchain ecosystem and take the proper steps to create groups to establish governance models. The collective decision of large businesses can help in the credibility of the governance models that outcome in resolutions of government issues. However, this conflict can significantly challenge the project’s success, even if the technology is secure and stable.
Blockchain technology needs to be fully understood and its potential applications are visualized. Professionals should avoid these mistakes for the moment. Certified blockchain professionals should invest more in understanding blockchain technology and its applications. This will help them improve their productivity. Blockchain technology will be a key concept as the digitization of records and the rise in decentralized networks is a significant trend.
Every day, new features appear on the Blockchain horizon. Organizations are constantly looking for innovative solutions. Blockchain technology is gaining popularity, and technology leaders must remove some bottlenecks and allocate sufficient resources to each project.