5 steps to build a blockchain solution
Just because it’s such a hype, does it really necessary to build a blockchain project? No. You have to make sure that you differ from other projects and here’s how.
1. Be creative and do not replicate from other projects.
There are a lot of similar projects popping up everyday so you have to be the best not just in blockchain platform or your marketing strategy. You have to be successful in all processes of your project and in order to do that, you have to follow those questions.
Are you privileged from others? With which idea?
Maybe your project is unique now but there will be a lot of same projects. At least, somebody will try to copy it. Select the applying area and beginning area, to enlarge your company. Like in MenaPay, Islamic finance compliance is keeping the project apart from all others.
2. Decide why you need blockchain.
To be a game changer on the industry you are working on, it should be creative and reasonable application of blockchain.
You should decide which one is the most important thing for your project to focus on.
Ask some questions like; are there any different solutions for your project without blockchain?
Decide which one is the best. If the answer is blockchain, be sure for that.
It’s obviously the second dotcom bubble, a lot of projects will fail but indeed others will be successful very much and new A class companies will be born like Google. If you look up the evolution of Google or some other project that was created in the beginning of Internet, you will understand what I mean.
3. Set what you need from blockchain.
Start with, private or public blockchain:
Public blockchains are slow but transparent. Thus, if your project’s aim is transparency , people who want to know all their actions within the platform will support you and you can create a great community. Even it is a private blockchain, MenaPay’s most important aim is to create a strong community.
If you want to work with financial services companies, they do not want to use public blockchain since there are no companies want to share their transactions, incomes etc. Moreover, there are a lot of advantages in private blockchain like it is faster and cheaper and it only lets people that are configured to join the network to work on the project.
Give user benefits prominence. As you are controlling the network, you have to gain confidence. Make your choice on these reasons.
4. Choose consensus mechanism:
If you decided to use a public blockchain, you have to choose your consensus mechanism.
Let’s glance at some examples:
Proof of Work: It is used by Bitcoin. The first consensus mechanism used by cryptocurrencies. Network miners compete to be the first to find a solution for the mathematical problem.
Proof of Stake: Proof of Stake currencies can be several thousand times more cost effective than other currencies. It is an alternative way of PoW.
Each mechanism have problems. They always get updates. For example: To defend Ethereum platforms from 51% attack, they are working on trust-chains.
Thus, final choice depends on your platform or project. Maybe you want to create new mechanism or platform but do not forget, there are many people have been working on it to develop the platforms.
Choose the most useful platform for the project;
It depends on your choice. Most of them are free and open source.
There are examples of relevant public and private blockchains:
ETH
XLM
Corda
HydraChain
Quorum
Hyperledger
How to decide?
Look at all platforms. To find which one is required for your project, research each ones. Find what you decided to need in the upside of the blog: public or private; faster, cheaper or safety. Which problems is the platform trying to solve?
5. Do you need smart contracts or not ?
Smart contracts: A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract.
You can decide rules only once on any contracts. It can not be changed after being written but it can be added to your system with a new version. You can use it on the transactions to perform your project well. It is very important and a lot of cryptocurrencies are already using the smart contracts. Don’t forget. This will also assure your investors!
Let’s look at some examples to better understand:
After the ICO of MenaPay, advisors, founders and team will get the tokens within a lock-up period. Thus, potential investors are gaining trust since they are ensured it is a long term investment, entire team is dependable. In this example, the smart contracts provide us to perform lock-up period.
Last but not least;
While completing these steps, your project will be concluded with a solution. If you believe your project is unique or have different solution methods than others, it will be the game changer for the blockchain world!
Design your chains with a consensus mechanism which is to perform well and fits your project. All things depends on you.
Remember, blockchain is not always useful for all projects and there are a lot of people who are working on it. Think twice before spending time and money.
FACTS:
Actually, the investments on ICOs are increasing but the failure rates of ICOs are also increasing. What is the reason behind that?
Here are the datas.
Data from ICOrating.com:
Only 7% of ICOs from Q2 2018 have been able to secure listings,
55% of all ICOs from this period failed to complete soft cap,
15% of projects already had a working business.
In 2018, ICOs already raised approximately $11,700,000,000 of investments. It’s too much for anyone.
A lot of scams and failures are happening because of bad marketing, advertising or fake projects. Finding more adequate projects or ideas is not enough. Furthermore, the blockchain network of project have to take an investment for your project.Therefore, you should ensure about your project to create with several ways.
Burak Balık
Entrepreneur, Investor, Cryptocurrency Enthusiast.
