Blockchain Entry Grows With Risks

New platforms give a growing business the chance to develop their own blockchain technologies. However, as blockchain entry becomes more reachable for businesses, many platforms are failing. Business managers should carefully survey their options while also considering the downfall of many blockchain products.

AWS Offers Ethereum Platform

An article from CoinCentral, Partnering with ConsenSys, Amazon Web Services Launches Kaleido Blockchain Platform, by Colin Harper, explains how companies can access blockchain technologies with lower obstacles. Amazon is partnering with ConsenSys, an Ethereum incubator that developed the Kaleido blockchain platform.

Kaleido uses a “private-public approach” to provide the security of a public blockchain and the flexibility of a private network. This “all-in-one blockchain platform” promises to lower financial and technical barriers of entry for businesses. Kaleido is available in the Amazon Web Services (AWS) suite of applications.

Hundreds of Crypto-Failures

Ethereum remains a popular blockchain platform with investors and developers, but so far, hundreds of crypto endeavors have collapsed. Some of these failures utilized the Ethereum platform.

MintDice listed the top five crypto failures:

  1. DAO (Decentralized Autonomous Organization) – began with enthusiasm as an Ethereum-based coin, but an attacker exploited a smart contract vulnerability that lost more than $50 million.
  2. PayCoin – presented a white paper for new variations of blockchain technology, but a federal investigation led to its downfall.
  3. Dogecoin – began as a joke, but it grew into a passionate community until it started to collapse.
  4. GetGems – created a bitcoin-based mobile messaging app that pays social networkers to watch ads, but it is losing to competitors.
  5. SpaceBit – planned to provide a global blockchain by launching “nano-satellites” into orbit, but the project has not left the ground yet.

The failures show that cryptocurrencies continue to be very risky even when they appear to be doing well. The website DeadCoins wants “to clean up crypto” by maintaining a running list of failures. The site allows contributors to “add a dead coin” and also debate entries.

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Alice is a member of the Florida Bar, and she focuses on data privacy and cybersecurity compliance. She attended the Warrington College of Business at the University of Florida and earned a Bachelor of Science in Business Administration. After graduating, she earned a Juris Doctor at the Stetson University College of Law. During law school, she served as an Assistant Executive Editor for Stetson Law Review and also as a Staff Editor for Stetson Journal of Advocacy and the Law. She also served as a member of The Florida Bar Journal/News Editorial Board from 2018-2024. She is currently a member of the Florida Bar Cybersecurity and Privacy Law Substantive Law Committee.