One of the biggest questions we get asked these days is whether it’s possible to build a viable blockchain project and how to get started.
Blockchain technology has been disrupting the tech world for over a decade and is only now becoming the new buzzword in the business world. There are numerous resources available and articles online on how blockchain works, how it is being applied in different business sectors, and how it can be utilized to create a profitable business.
Before proceeding, it may be a good idea to brush up on your blockchain vocabulary with our crypto terms for starters article.
The primary purpose of blockchain is to create ecosystems that act as portals and marketplaces.
Blockchain is here to stay and is creating a paradigm shift in technology. Businesses will either change and adapt to the new environment or face possible extinction. Blockchain is still developing, but there will be a lot of opportunities for smart entrepreneurs to create new and exciting projects and tokens.
From allowing business owners and developers to connect with each other and exchange their services to using blockchain technology to build their decentralized financial applications (dApps).
There are many ways that blockchain, smart contracts, and dApps are disrupting not only business but society in general. The most obvious is that cryptocurrencies do not need any intermediaries, and transactions are executed without minimal commissions or fees. This affects banks and lenders specifically. The second and maybe most significant is that smart contracts will disrupt start to disrupt industries such as real estate, international money transfers, and even voting.
There are also plenty of other opportunities related to blockchain, such as data storage, user reputation verification (with a reward system), blockchain-based social networks, and so on.
The idea of the article is to describe the main stages of developing an idea into a real project, which will be developed on the blockchain platform. In this article, I assume that you already have the idea for your blockchain project.
In most cases, you will also want a business plan. While these are usually only required when seeking investors, it is a good idea to get your plan down on paper. Even without an investor, it is very useful to draft a plan for your project. In addition to information about the market and the project itself, it is necessary to consider the financial component. Everything should be thought out in advance: how much money will be invested in the project, how many people will work in the company, how many stages need to be completed, what will happen if we raise more money than needed for development – everything should be specified in advance.
To create a blockchain project, you will need to prepare yourself so that you are ready to lead the team and build a sound project. Here is what you need:
The following are the 5 steps to take before you start your blockchain project.
- Create your whitepaper
Your whitepaper should explain your project in as much detail as possible; it should explain what the problem is that your project is going to solve, how tokens will be implemented, as well as some biographical information on your team members. - Choose your platform
There are many blockchain platforms to choose from, and it seems like the list is growing longer every day, but the top three blockchain platforms are currently writing are as follows:
• Ethereum – one of the oldest and most established platforms; while slower than some of the newer blockchains, Ethereum will soon be switching from a PoW mechanism to PoS. This switch is said to be far more energy efficient at an estimated 99.95% reduction in power use.
• Hyperledger Fabric – hosted by the Linux Foundation, Fabric is a set of tools to help in the development of blockchain applications. It supports an open smart contract model and works well in closed blockchain deployments that are said to improve speed and security.
• Stellar – a newer blockchain platform optimized DeFi (decentralized finance) applications. Using the Stellar Consensus Protocol to speed the time required to process and finalize transactions on a public blockchain network, it also includes security mechanisms for questionable financial transactions.
- Decide on your token functionality
There are four main types of tokens, Payment, Security, Utility and Non-fungible. Your token types will depend on the type of problem your blockchain solves. - Create a marketing strategy
While not the most difficult part of creating a blockchain distributed ledger, having a solid marketing strategy can make or break any business. With that in mind, try to use all the tools at your disposal. From social media campaigns and fun online videos to community-based promotions in the real world, getting eyes on your project is the best way to get people talking. - Secure project funding
Here is where having a strong team, a great reputation, and your amazing white paper starts to come into play. Whether you are seeking funding from a VC, angel investor, or some other form of funding, having a solid business plan and being prepared with documentation, current numbers, and growth projections will ensure that your project is taken seriously. No matter how trivial the idea may seem to others finding the right potential investors is key to the success of any project.
In conclusion, blockchain technology has grown to become a part of our lives and has changed the way we perceive our work and business. This is a completely new sphere with new challenges and new opportunities. A blockchain project can be a difficult one, but if you follow all the stages described in this article, you will be ready to create it.
If you are the owner of a business, you should decide if it is worth investing in the development of a blockchain project for your product or service. Even with the recent downturn in the cryptocurrency market, there is still a growing demand for blockchain developers and development.
Bucky has been into AI, online marketing, and website performance since its creation in 2020. Based in Los Angeles with their cat, Bucky finds joy in the idea of nature, being outdoors, and engaging with friends.