Blockchain technology is the wave of the future that will drive business growth and increase your profits. Here are some common mistakes businesses make when investing in blockchain technology and how to avoid them:
- Overlooking address verification technology for blockchain technology
Blockchain technology is not highly regulated and there are huge security advantages to a decentralized server. However, it is important not to overlook security. One important blockchain security measure to be sure to implement is payment address verification. Without payment verification, one typo that a consumer might make could move one’s entire savings into the wrong account. There are well-established verification technologies available that make it easy to verify addresses so that no one is sending tokens to the wrong place by mistake.
- Operating in a country that has outlawed cryptocurrencies
With the decentralization of the server, it is important to ensure that you are operating in countries that allow this type of activity. Some countries to avoid are Bolivia, Bangladesh, Nepal, Morocco, Ecuador, and Kyrgyzstan. Be sure to double check as other countries such as Russia are considering banning cryptocurrencies as well.
- Deficient protection against lost wallets on consumer devices
Consumers wallets are often only stored their primary device and are susceptible to inadvertent deletion or malware theft of the file. Making backup copies of the file which holds the wallet information and secret key information in multiple places such as another device, a USB drive, or an external hard drive is advisable.
- Ignoring phishing scam attacks
Theft is an issue that all blockchain businesses need to combat to protect their client’s tokens. As with traditional banks and businesses, your business could be the target of a phishing scam that sends emails to your employees or clients pretending to be from your business or the customer. With cryptocurrencies, the movement of tokens is instant and cannot be recovered, so it is even more important to put protections in place. It is especially important to train your staff on phishing so that they are not victims of this giving away information to the wrong person.
- Neglecting to help clients create a strategy for their tokens
Blockchain technology has immense potential for businesses and their clients. However, it is easy to get carried away with trading and dabble in all kinds of things without a clear direction. Make sure you encourage your clients to take the time to create a strategy for how they will be using the tokens that align with their goals.
- Not analyzing failures
As consumers start to use the blockchain technology tokens for your business, it is important to analyze the impact of trade failures. As you look at what happened and why your company will be able to learn from the mistake and better assist clients with future trades.
- Omitting the customer’s identity verification process
Know your customer verification is a common anti-fraud principle that is important to implement for all blockchain technology businesses. Verifying your client’s identity will not only save you from lawsuits, but it will also give you a strong reputation for caring for the client and doing what is right.