The Discovery Phase for Web3 Projects
Building software can be a challenging journey to navigate. However, a structured Discovery process can help you cut through the noise and create a customer-centric blockchain solution with optimal resource allocation.
Our team at Upstate Interactive follows the agile scrum methodology to incrementally build usable and scalable Web3 applications. One of the main benefits of using this framework is that it allows all stakeholders (clients, product owners, developers, and designers) to stay in sync at all times. To set ourselves up for success with development, we usually start a project with a Discovery Phase.
What is a Discovery Phase?
Discovery is the process of analyzing the stage of a project and mapping out a timeline and resources for its development. It connects a project’s value propositions with the corresponding software requirements — through interviews with stakeholders and end-users, technical research and architecture mockups, and feedback-driven iterations.
A typical Discovery Phase may take from two weeks (one sprint) to two months, based on how far along a project is. Depending on the scope and timeframe of a project, the first development sprints may take place in parallel with Discovery.
Deliverables usually include:
- A standalone software requirements document with the specifications for acceptance criteria,
- Behavior-driven user stories, which capture the requirements from the users’ perspectives,
- Logical architecture and workflow diagrams, which depict the interactions among the to-be-developed components of the solution, and
- A statement of work for the Development Phase, which outlines the estimated timeline and cost for development with more accuracy.
Why does it matter?
Discovery is particularly relevant for Web3 projects as a tool to minimize risk.
Considering blockchain’s status as an emergent technology that has not fully made it to the mainstream yet, any decentralized solution is susceptible to systematic risk. Even though there is not much any of us can do about that, Discovery can help us minimize the overall uncertainty by addressing its riskiest assumptions and providing more accurate forecasts.
More specifically, the Discovery process can help you cut down development risks for your Web3 solution by:
- Having blockchain experts explore challenging questions that are relevant to your business (e.g., can we build royalties for secondary transactions into an NFT?),
- Designing stronger solutions based on the analysis of tradeoffs across multiple possibilities (e.g., what is the ideal balance between Web2 and Web3 for a fast and scalable platform?), and
- Aligning expectations for development with more accurate estimates for the project timeline and corresponding cost.
At Upstate Interactive, our Discovery Phase also allows us to build trust with our clients. It is an opportunity for us to solidify the relationship after our initial calls. As a high-touch team of Web3 experts, our developers, product owners, and designers appreciate establishing regular communication with our clients and conducting deep dives into their technology and market challenges. It sets the way for a successful, two-way, and often long-lasting collaboration.
When should you invest in a Discovery Phase?
Technically, you may conduct a Discovery Phase any time you start a new technology project or a significant iteration of previous versions. Here are two examples of business scenarios where the Discovery process may provide the highest return on investment:
- A DeFi or NFT startup exploring which protocol to adopt for a timely Mainnet launch without compromising their scalability plans. In this case, Discovery can help them test architecture-related assumptions before any investment in development is made. The process would allow them to save resources (time and capital) initially and later on by avoiding double work on major infrastructural features that did not follow user requirements.
- Mature and growth-stage businesses that want to explore how Web3 solutions can integrate their products/services portfolio, providing new value propositions to their customers. In this case, the Discovery process can help them narrow down the blockchain applications that could be a good fit for their technology systems and target audience.
If you are interested in learning more about how we run the Discovery Phase for blockchain projects, don’t hesitate to contact us.
