While the blockchain industry is advancing rapidly, many myths and misconceptions have been perpetuated about enterprise blockchain. Through this article, I attempt to decode and debunk some of the most popular myths about enterprise blockchain.
#1 Enterprise blockchain is all about hype, with no substance
Rather than little or no traction, I find enterprise blockchains live up to their reputation. Real transacting consortia on this technology have generated millions of blocks on the ledger. Reducing the average dispute settlement times, and restoring in-dispute funds back to businesses are some of the benefits of blockchain technology.
#2 Enterprise blockchains are always private
Here, I’d like to stress that it is important to differentiate between private and public/permissioned and permissionless enterprise blockchains. Enterprise blockchains are permissioned, but they may or may not be private. Consider enterprise-distributed ledger technologies like Hyperledger Sawtooth, Corda, and EEA Quorum, where members have a network access based on cryptographic identities.
#3 Enterprise blockchains do not perform well
Though cryptocurrencies like Bitcoin operate in multiple transactions per second and transaction latency of confirmation is in minutes, permissioned enterprise blockchains can perform well too. IBM has cited how Hyperledger Fabric and R3 Corda are some blockchains that can attain performance in a range of thousands of transactions per second, with sub-second response times.
#4 Smart contracts are a security threat for enterprise blockchains
If casual choices are not made in the network governance scheme and the blockchain platform, I feel there is no reason smart contracts should be a security vulnerability for enterprise blockchains. The Ethereum DOA attack, for example, was a flaw in the DOA’s governance rather than an issue with the virtual currency.
The right governance tools ensure decentralisation checks and balances. Governance models need to be measured, comprehensive and enforceable to mitigate security risks.
#5 Enterprise Blockchains Are Used By Only Big Companies
The truth is enterprise blockchain is associated with more than just money or finances or even larger companies. Blockchain technology is not a singular entity like a computer program. Enterprise blockchains can be scaled to fit user needs, and a wide variety of users including individuals and non-business users can benefit from it.
According to PwC, USD 1.4 billion was invested in blockchain technology in 2016 alone. To allege enterprise blockchain as a hype is to ignore its value. As I sign off, I’d like to add that the value of blockchain technology is as immense as its potential. Enterprise blockchains have opened up an infinite world of possibilities and change the way people do business forever.