Planning on Adopting Blockchain Technology for your Business? Note these 3 Misconceptions

blockchain technology - cfamedia

As a start-up, probably, new in the entrepreneurship ecosystem, you may have, once considered implementing the blockchain technology, to run your business structure, but at a point, you discarded that thought.

What could have gone wrong?

You might have got caught up, in the mix of misconceptions about blockchain and you now fear to go ahead with the implementation process.

Here, are some of the myths, or, misconceptions about blockchain technology, from experts, that, you should consider, before deciding on what to do:

Blockchain Is All About Cryptocurrencies

I taught blockchain was all about cryptocurrencies when I first came across the concept and this might just be the same, for quite a number of people.

The blockchain system can be “permissioned” or “permissionless”.

A permssionless system, allows the public to validate information on transactions that are, usually, decentralized, while the permissioned, allows a selected group, approved by the owners of the blockchain, to validate.

Executions on cryptocurrencies are performed on a permissionless version, which is public.

A permissioned system appears to be scalable, but at the same time centralised.

Asides this, there is also the private permissioned and this is relevant for venture applications, as it concerns privacy.

In this case, all participants on the blockchain network, get a pre-selection and validation, which is often used on a model that demands collaboration, between businesses.

This does not involve cryptocurrencies.

For instance, a business venture could establish its own blockchain network and get collaboration executed, within its network.

Blockchain Can Be Implemented For Tech’s Sake

For start-ups, the urge to use the blockchain technology appears to be appealing, since it is an emerging technology.

If this appears to be your reason for it, then, that is just a wrong step taken forward.

Implementing blockchain, ought to be an informed decision, influenced by data and usability, hence, a necessity.

Depending on your business model, blockchain can be implemented in;

  • Providing a new experience to your customers
  • Meeting an unfulfilled need
  • Executing an uncompleted disintermediation
  • Digitising and preserving activities, on the network

With the combination of the public and private blockchain, the double-counting challenge has been solved, in money applications.

At this point, private blockchain tends to solve challenging business tasks that other technologies could not address.

If the technology could not offer this, then, there is no point in exploring its usage.

Blockchain Usage Requires A Consortium

Have you been told that the usefulness of blockchain is, dependent on everyone’s participation?

Experts say no. Someone does not have to take the initiative, in starting the chain and getting things effective.

Experts have shared their thoughts on this. Through a private blockchain system, ventures can commence their own.

This approach is DIY.

This can help to address trust issues, between companies and suppliers.

This will enable ventures, to increase the time spent, studying data that gets saved, through blockchain implementation.

Efforts like this, deliver a high rate of collaboration in the journey of the business.

Blockchain experts, also, share their thoughts, on how blockchain can assist, in solving business challenges Some of these include:

  • Reducing purchase order failures
  • Improving the expected time of arrival for customer orders
  • Tracking the movement of high-precision tools
  • Safeguarding personally identifiable information

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