Blockchain in the business world often seems to go wrong. The question is why this is and whether this is harmful to the development.
Blockchain is a data structure that was originally devised for the Bitcoin network. It can be compared to a general ledger in which an overview is kept of the changes during a certain period. In recent years, blockchain projects have become increasingly popular. Many large companies invest in such projects. However, in reality 95% of these plans are not elaborated further than the proof-of-concept. Why are these projects failing? What can companies do to increase their chances of success? How harmful is this to the development of Blockchain as a whole? We’ve listed the top 3 reasons why Blockchain projects fail.
Blockchain projects do not fit within the corporate structure
The most common reason for blockchain project failure is that entrepreneurs have not looked closely enough at their own business structure. When examining the business structure, it is important to answer the following question: “Can multiple parties benefit from data sharing and coordinating processes within the data stream?” Only if this question can be answered with ‘yes’ is it possible that such a project fits within your company.
Stakeholders’ motives did not match
Enterprise blockchain projects often ignore the power of coordinating the actions of various parties within a project. The goal of a project, to create a chain that integrates all nodes from source to consumer, is only achieved if the motives of all participants within that process match and the integration of blockchain has added value for all parties.
A strong consortium could not be maintained
A consortium is an association or collaboration of banks or companies to implement a project. If this cooperation is not maintained, the chain of participants will be broken and the project will therefore fail. In order to keep all parties interested in the collaboration, it is important that all parties benefit from the collaboration. Transparency is also very important in good cooperation. In addition, parties must be able to make their own contribution and see this reflected in the final result.
Are these grounds for failure harmful to the Blockchain?
As we can see, the main reasons for the failure of a Blockchain project lie in the structure and / or culture of the participating parties. The good news is therefore that failed attempts are not due to disappointment about applications or inadequate technology. The expectation is that once the parties are used to the requirements for cooperation, many more projects will succeed. That this is possible proves VeChain (VET) , that via various partnerships takes the initiative for more and more successful Blockchain projects.
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