Top 3 Blockchain and Data Management Myths

 

Blockchains have been in the news for a considerable time now, and there is an element of the unknown about them. And yet, when you break it down, blockchains are nothing but data, and that makes it important for data and analytics leaders to actively participate in any blockchain experiment conducted in their organisation.

 

However, as with anything relatively new there are myths surrounding the application of blockchain technology in traditional data management systems. Are you ready to debunk these myths? 

Myth #1: Blockchain will replace existing data management technologies

Many people incorrectly believe that blockchains are a kind of a database.

 

Truth is, blockchains are write-only ledgers and they cannot manipulate data. Only block and transaction metadata is self-describing in a blockchain, where features such as format, structure and history are embedded within. The actual information is largely opaque.

 

Blockchains are just another data source to integrate.

Myth #2: Blockchains are inherently more secure

Then there are those people who believe that a) blockchains can magically track and revoke data access even if the data has left the blockchain, and b) that the cryptographic methods in a blockchain provide a sort of permeable vault where users can expose only those things they want to.

 

However, blockchains are not security infrastructure or an encryption solution for your data.

Myth #3: Vertical-specific blockchain platforms simplify vendor selection

Emerging blockchain vendors are focusing on carving the market either into specific verticals, such as finance or media, or in intercompany functions, like supply chain. Additionally, business models of vendors also vary, with some offering open-source tools or open core while some only dealing in proprietary products.

 

Businesses looking to adopt blockchains need to understand that these different platforms are as yet neither interoperable not offer any uniformity. Avoid making any long-term commitments with any vendor.

 

Data and analytics leaders are uniquely equipped to capitalize on the early state of blockchain, after years of transforming how their companies use and value information. Through 2021, 90% of enterprise blockchain platform implementations will require replacement within 18 months to remain competitive and secure, and to avoid obsolescence.

 

To know more about the scope of blockchain transformation, and the current state and evolution of these technologies, please join us at the Gartner Data & Analytics Summit 2019, 10 - 11 June, Mumbai.

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