WHAT CAN CAUSE FAILURE OF A BLOCKCHAIN PROJECT, CAN IT BE AVOIDED.

Introduction

We have been discussing a whole lot about blockchain technology and you can say that block chain is just the painkiller too many pens that so many sectors face but there are some history of some blockchain projects that failed what could have been the cause?
In this content will be having a breakdown of blockchain failure will look into some use cases and how we can avoid such in our project.
Blockchain projects can actually feel if the needful are not done but what are the needful?

Edited from pixabay

what can cause failure of a blockchain Project.

1) Poor foundation.

For a building to stand firm and withstand storm the building must have a solid foundation and this solid foundation must have a plan of how many rooms that will be standing in this foundation how many storey building that is expected in this foundation with that the builders will have a strong house after a long tiring work.
This also applies to blockchain projects the project must be defined from the start the company or organisation must draw a plan and work with it they must have in mind the cost of the projects before starting they must analyse what they want to achieve with the project they must calculate the profit they are expecting from the project, most importantly they must research about blockchain platforms how they work and figure out the one that suits the project they are about to embark on.

• COMPETENT WORKERS.

After drafting out a building plan to achieve what is plan competent and experienced workers are needed, likewise blockchain projects the company must have competent and experienced workers that will help work with the plans and work in the right blockchain so as to achieve the target or goals it is also importance to provide this competent workers with up-to-date technology to do the needful, Then you will expect great results not failure.

Blockchain projects fails when there is no solid foundation and when there is no set up target of the challenges in which the project wants to address with blockchain technology also when the visions of the project are not defined this will also make it difficult for such projects to succeed and this is the main reason why so many projects have Failed.

FAILURE AS A RESULT OF TECHNICAL CHALLENGES.

Some blockchain projects failed as a result of technical challenges while planning for a block chain project it is very important to put in place how to deal with future challenges because when there is no plan on how to deal with such challenges it means failure because there will be no time for the team to start planning in the middle of challenges.
And technical challenges has been one of this problem that causes failure to blockchain projects, especially when there is no plan of how to handle larger number transactions in the blockchain as the users increases, poor technical performance can also lead to insecurity in the blockchain resulting to poor and negative feedback from users that will be disastrous for the project that is why it is very important to make researchers see how proof of brain and proof-of-work can be implemented in a blockchain project to get a better result, Having an up-to-date technology will give smart contracts the opportunity to do a perfect job and sweep away and inconsistent data

In all to avoid failure, during planning there should be many source of data so as to help smart contract provide reliable and secured informations and there should also be provision for storage and bandwidth because when there is less storage space this can lead to loss of information which will be unfair for any project using blockchain technology so a lot of work should be put in place before embarking on a block chain project.

MISMANAGEMENT OF RESOURCES.

Mismanagement of resources has been another major reason for blockchain project failure, aside from blockchain projects any project that fails to manage its resources wisely will faced failure so on any blockchain projects it is very important to manage all resources well because a lot of resources is needed in building a Blockchain project then after building a lot is also needed in maintaining this project so when there is no resources to maintain this project the next thing is failure and that will be lead to loss of investments time and also loss of resources.
To manage resources wisely there is need to have experts in cryptography and blockchain development that will help, because a non skilled worker will not achieve any success no matter the amount of resources given to him, so to avoid failure due to resources mismanagement experts will set their priority and they will go as far as searching for external supporters for the project and collaborate with them.

LACK OF COMMUNITY SUPPORT.

So many projects failed due to lack of community support and this comes as a result of limited adoption no good community development lack of good network security and the project was not visible enough, to avoid such failure these vital after developing any blockchain projects invite people from social Media forum or other channels to come and engage in this project and this is where resources is needed to at least appreciate these supporters with little incentives that will attract more users, the project should also be transparent enough that all users will understand the goal and work towards the goal and the project will meet his success yes community development is the key to success to a blockchain project.

Example of a failed blockchain project

IBM and Australian stock market is a use case of Blockchain project that failed and this was really a great blow, this came up as a result of lack of commercial traction and also mismanagement of resources because there were profits from the onset also there was no plan on how to manage users and future challenges, so where there was much competitions it was difficult to cope.

Summary

Define your project define your objectives get the scope and identify the challenges ahead of time put plans in place of how to solve them manage our resources well then get an up-to-date technology that will be able to track all activity done during the project and with expert workers any blockchain projects will succeed.

Research link 1
Research link 2
Research link

Posted Using InLeo Alpha