Avoid these mistakes in Blockchain Implementation
In the last year, there were more then 85,000 blockchain projects started in the blockchain project ecosystem. Unfortunately, only eight percent of the projects are actively maintained. Even with the excitement surrounding blockchain technology, many blockchain project developers repeat the same mistakes when they try to implement their blockchain projects. If you want to launch a blockchain project this year successfully, then you’ll want to avoid making these common mistakes.
Providing the wrong statement of project during token introduction
Blockchain operates with data through the processing of tokens. A significant number of blockchain-based projects require tokens to be introduced, which is usually followed by an initial coin offering to obtain investments and gain capital for further development. Unfortunately, the following mistakes at this stage can lead to future problems.
- Not specifying a mission, setting goals, or clarifying the meaning of the project.
- Implementing a low level of product development
- Having an insufficient resource investment
- Lacking patience
- Fear of making mistakes
- A poor level of security
Wrong decision on Blockchain type and consensus
Consensus with different sizes of blocks, configurations of nodes, and sequences of node competition are leading to new customers or private blockchains being created. Each has limitations of processing times, scalability, and support of smart contracts and security. A significant share of these projects introduces tokens with the Ethereum platform and later struggle to further the project with the creation of a solution. More projects are abandoned when they can’t find a solution.
Wrong business model
Some of the blockchain projects that fail try to recreate an existing centralized business model with blockchain technology underneath. The blockchain is a robust technology that needs a complete redesign of the business model. During the implementation process, teams are trying to invent blockchain under business models without changing them, which makes blockchain effectively useless.
Profitability vs. cryptocurrency return
There are two significant issues with profitability and cryptocurrency return. The first being that it is more profitable to gain cryptocurrency during an initial coin offering then to wait for an increase in prices. Secondly, due to the high volatility of cryptocurrencies, some projects end up suffering from a lack of financial resources because of the wrong financial management during implementation.
Wrong market estimations
Due to custom-blockchain immutability after deployment and smart contracts, some projects mis-estimate their token economics and types of incentives for users. Wrong predictions will lead to a significant drop in the economic value of the token and failure of the project.
It is essential that you pay attention and avoid these common mistakes if you want to run your blockchain project successfully.