Blockchain technology is increasingly beginning to take over our society. It’s the future, which is why both governments and corporations have increased blockchain spending by 89% for this year alone.
Major enterprise blockchain projects are becoming the norm, but with the rapid increase in investment, businesses are making massive mistakes.
Before you launch an enterprise blockchain project you need to be aware of these mistakes.
Not Considering Data Tokenization
The concept behind data tokenization is sensitive information is taken and replaced with non-sensitive items, which are known as tokens.
It’s different from encryption because no mathematical formulas are used to protect sensitive data. The footprint of this data is lessened, thus in the event of a breach data loss is highly restricted.
It’s the next step in security. Make sure you implement it.
Misunderstanding the Reasoning Behind the Technology
The whole point of implementing blockchain is to deliver a trusted environment to something that’s already untrusted.
Entrepreneurs must identify these untrusted areas first, otherwise, the technology is going to waste. Some businesses even fail to prioritize security, only to find they’re not getting the true value out of blockchain.
Putting All Your Eggs in One Basket
The latest forecasts state the blockchain market will generate $3 trillion every year by 2030. For now, blockchain is still maturing. Most solutions are fluid offerings created by startups.
If you’re going to get into blockchain you must accept the reality of this. You can’t just buy a product and then forget about it. Your goals and your needs must continually evolve through regular review.
Assuming that Blockchain Standards Exist
Blockchain is like nothing else on the market. Most of the different technologies continue to be in the development stage and have no specific roadmaps. Many of the wallets and ledgers have little to no integration options.
The lack of blockchain standards means you can’t just ‘snap-on’ different parts of the technology to your company. And don’t expect any compatibility between different vendors.
Be mindful of this to avoid a lot of frustration later.
Pretending Governance isn’t a Problem
Blockchain platforms tend to resemble the Wild West in many ways. Private organizers may have set rules for the whole platform, but public blockchain is slightly more complex.
For example, take the cryptocurrencies Bitcoin and Ethereum. Governance does set the rules for the technical side of things, but human interaction with those cryptocurrencies is unknown. There are no standards.
Don’t bury your head in the sand and leave yourself vulnerable by not understanding the playing field.
Last Word – Businesses Must Understand the Realities of Blockchain
There’s value in investing in blockchain right now. Becoming an early adopter of the technology can pay dividends later.
The problem, though, is blockchain lacks the protections and the standards you’re used to with other products.
Make sure you’re aware of the advantages and the limitations of blockchain before you begin to implement it.
How do you think blockchain can change the way you do business?
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