8 Tips to Successfully Build A Blockchain Application
According to a recent report from the China Academy of Information and Communications Technology (CAICT), of the 80,000 projects that have launched globally, 92 percent have failed already and blockchain-based projects have an average lifespan of 1.22 years. So how will a blockchain program survive over the long run?
Vytautas Kašėta, president of Crypto Economy Organization , shared with Traders Magazine eight keys to building a successful blockchain application.
First, identify the problem your blockchain project want to crack
You must have a clear understanding of the market you intend to enter and the challenges you have to face. Thus you can identify the pain points your project needs to solve,ensuring that the product you create can best satisfy user needs right now or in the future.
Second, find teammates who are most needed
The persons you hire will be your greatest asset. Start from recruiting the best CTO in your city. He will know how to solve the problem and has the ability to do that. Also, you should recruit a developer as soon as possible, among other employees.
Third, you must become a blockchain expert.
Do you know exactly how your product will benefit from blockchain technology? Every team member should understand what blockchain is. If you are still looking for answers, you’d better to read books about distributed systems, digital and crypto economics, distributed ledgers, and so on. If you are the project founder or the CTO, you can start from ‘Blockchain Revolution’ and you can start with “Blockchain Revolution” by Don Tapscott and “The Business Blockchain” by William Mougayar. If you are a developer,you can go to the GitHub to find your preferred blockchain project.
Fourth, choose types of ledgers wisely.
In choosing a ledger type, especially selecting between public and private ledgers, a blockchain startup is recommended deciding what distributed ledger features they might need in the solution. Knowing whether you need to use programmable business logic and smart contracts, or just state and transaction records and metadata will help you select the suitable ledger and infrastructure.
Currently, at least 4 to 5 corporate private ledger solutions can be easily used in your business case, such as Hyperledger and NEM. In a private ledger, you need to set up some nodes and keep them running and synchronizing, so the company has to bear the cost of the infrastructure, but you can choose to make all the transactions free for the user.
Fifth, you must be clear about what’s your role in the ICO ecosystem
A firm must identify its role in the ICO ecosystem and keep in mind that ICOs are more costly compared to traditional venture capital funds. You need to have something more than just a white paper. Companies need to make it clear whether they are bringing value to the developing cryopto economy, improving technology, or dealing with a distributed or sharing economy with blockchain.
Sixth, treat tokenomic seriously.
If your project is creating a closed economic platform , a market or issuing a token that has access to its service, you must build a serious token economy. What will your token do? What is the purpose to issue the token? If you take the token out of your product, will it work?
Seventh, blockchain startups must have clear business strategies.
Knowing your competition well will help you and be sure to offer added value. Of course, the startup needs to ensure that the potential users are willing to pay for your product.
Last but not the least is security. Ensure that the blockchain platform is not exposed to cyberthreats. The biggest mistakes with distributed applications are programming and coding mistakes, so auditing is a must.