Is Blockchain a Risky Investment for Companies?

The phenomenal advantages of blockchain technology provide a range of new opportunities for businesses to explore. Its features, such as immutability, consensus, security, and transparency, make it an attractive option that has been making waves since its debut in 2009. Despite these attractions, many projects have failed due to inadequate understanding or lack of sound lessons from prior experiences.

While Blockchain is a Promising Situation, Failures Are Not Rare

PwC’s Blockchain and Crypto study affirmed the astounding influence of decentralized technology. Pauline Adam-Kalfon, a partner member of the management committee and leader in PwC’s blockchain/crypto activities, reinforced this notion with her words: “It’s no longer a question if companies should use blockchain or crypto assets, but when and how.” The results from the survey indicate that organizations must embrace distributed ledger tech for success.

PwC’s French clients seem very enthusiastic about blockchain technology, as they claim on their website that 61% of the companies are making profits via their projects. However, a study published by China Money Network paints a different picture – 90% of blockchain projects fail within one and a half years! It is clear then that while this new technology is exciting and full of potential, it should not be taken lightly and should be approached with caution.

Maersk and IBM recently canceled their TradeLens blockchain platform in November. The project’s goal was to use IBM’s technology to secure digital supply chains, providing Maersk’s trading partners with one source of access to real-time freight shipment data and documents. 

So What Lessons Can We Learn From These Failures?

After analyzing Maersk and IBM’s trials, Cointelegraph has generated a list of three major lessons for business owners. Firstly, it is essential to recognize that blockchain technology is not uniform across the board. Secondly, complex projects must be avoided initially; simpler applications are more successful in the long run. Lastly, companies must accept that there will always be different risk levels associated with any blockchain technology project.

Charoen Pokphand Foods from Thailand has embraced blockchain technology to monitor and track its goods, but the key is for companies to take lessons learned from other organizations who have already experimented with this tech. By doing so, they can avoid common mistakes and maximize their success.

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