Common Mistakes in Blockchain Projects

Dr Adrian Leow, Gartner Senior Research Director
Dr Adrian Leow, Gartner Senior Research Director

Gartner, a global tech analyst firm, has presented a report on the most common mistakes in blockchain based projects:

Misunderstanding or misusing blockchain
Most blockchain projects are currently used to record data on a blockchain, but ignore features such as decentralized consensus, tokenization or smart contracts.

Assuming the technology is ready for production use
Most blockchains are currently not ready for large-scale productions.

Confusing a basic technology with a complete system
Blockchain is a foundation-level technology but is not a complete application, lacking features like a user interface, business logic, data persistence and interoperability mechanisms.

Thinking blockchain is simply a database or storage mechanism
Blockchain is designed to provide an authoritative, immutable, trusted record based on the action of untrusted parties. Here lies the conceptual difference to a traditional database because blockchain entries can’t be altered. A conventional data management solution might be the better option in some cases.

Assuming that interoperability or standards exist
Most blockchain products are in development, don’t assume any one service will interoperate with others in future.

Relying on smart contracts as a mature technology
Smart contracts are perhaps the most powerful aspect of blockchain-enabling technologies, but there are still big challenges with scalability and manageability and will take two or three years to mature.

Ignoring governance worries
Human behaviours or motivation are rarely addressed by the technical governance of public blockchain projects, but organisations need to be aware of the issues that could pose a risk for the success of their project.

Dr Adrian Leow, Gartner Senior Research Director, is on the photo above.