BLOCKCHAIN technology is incredibly exciting with new and emerging commercial applications passing the proof of concept stage every month.
Although there’s a good chance that today’s blockchain projects will need to be tweaked in the future when there’s more standardization, companies can’t afford to stay away. They need to explore what it offers and find ways to leverage it to disrupt their industry and delight customers.
What’s keeping a lot of businesses on the fence is their fear of failure.
According to Gartner, it’s necessary to understand the root causes for failure in order to be able to avoid them and charge ahead to success with blockchain projects. Here are some common mistakes that businesses make:
# 1 | Misunderstanding blockchain technology
“DLT is a component of blockchain, not the whole blockchain. The fact that organizations are so infrequently using the complete set of blockchain features prompts the question of whether they even need blockchain,” said Gartner Senior Research Director Adrian Leow.
Gartner has observed that the majority of blockchain projects are solely used for recording data on blockchain platforms via decentralized ledger technology (DLT), ignoring key features such as decentralized consensus, tokenization or smart contracts.
“It is fine to start with DLT, but the priority for CIOs should be to clarify the use cases for blockchain as a whole and move into projects that also utilize other blockchain components.”
# 2 | Assuming blockchain is ready for production use
Blockchain is an interesting technology and has several key features that allow it to transform business operations.