Here’s a concrete example. Blockchain startups can move faster, have better governance mechanisms thanks to smart contracts and quick to launch front-end only apps. This is a band-aid approach to running an actual business.
An actual business is capable of protecting their own data. Some blockchain startups advertise themselves as a purely decentralized operation, yet they run a heavily centralized cloud — potentially for good reason. In some cases it is to build a better product. In this case they would simply be leveraging “decentralization” as a marketing gimmick.
Regardless — A business must be built to withstand threats from all angles. Cybersecurity threats. Legal and regulatory threats. It must be designed to withstand attempts of compromise from within the organization.
Extended list of important reasons
- If someone implants ransomware and compromises your production DB who are you going to call?
- If consistent attacks on hot wallet, you’re going to need an added layer of security
- They’re going to want healthcare protections and financial data protection regulations to cover your back
