Blockchain is a distributed ledger technology that features data immutability, decentralization, and peer-to-peer communication. It helps to build trust-less networks for businesses to transact with other organizations. In the enterprise domain where trust is expensive, Blockchain helps organizations weed out inefficiencies both within the enterprise as well as industry-wide.
During 2017-2019, businesses mostly spent on trying out the technology with Proofs-of-Concept and Pilots. Today, Blockchain is getting into the mainstream with the launch of large Blockchain networks and consortia like IBM Food Trust, TradeReboot, Zuron, etc. The question among the enterprise leadership is no more about whether the Blockchain technology will work? It is about how can we make it work for us?
While many folks have invested in enterprise Blockchain projects, the reality is that many of these projects do not make it beyond proof-of-concept. As per a report published by Gartner, only 5% make it to production, and 90% of them will need replacement within two years to stay abreast in the competition. Most of them have either ignored or are no longer interested in making any significant change on the spot. So, what has failed for them? There are some common mistakes as to why these enterprise Blockchain systems failed. However, the most common one is a misunderstanding of the Blockchain applications in the real world.
Trying to Apply Blockchain to Everything
While Blockchain technology can disrupt most industries, it is not a solution to every problem. Besides, the technology is still maturing, so it is unsurprising that not everyone understands it or knows its use cases. Businesses should first figure out if their business needs Blockchain instead of implementing it straight away. There are two ways to find that out:
- Is the legacy solution ineffective, insecure, or expensive? – Devel