6 Basic Questions to Ask Before Launching a Blockchain Project

  • 7 minutes

More than 1600+ cryptocurrencies are in circulation and we know the big ones such as Bitcoin (BTC) and Ethereum (ETH). In an attempt of making an informed decision, you must ask some wise blockchain questions.

You should know what information about the project is important and what’s not.

Blockchain story has just started, it isn’t in the middle or at the end. Bitcoin was the first generation of proof of concept and Ethereum is the second, third includes projects like Hyperledger.

Enterprise blockchain projects can only get successful if they seek advantage of the unique features of blockchain.

Here is the list of few questions you must ask before launching a blockchain project.

1- Is your project offering real-world problem solution?

Most of the coins out there are value transferring protocols and they don’t offer anything more which Bitcoin or Ethereum do not have. Second use case are those companies adopting blockchain without even knowing clearly about it.

It is worth reminding yourself that what problems your blockchain project will solve. Is the platform best suited for your solution? If a project can solve a problem through distributed ledger technology which previously was unsolved, it will ensure high demand in the market.

2- Does the market has working product already?

Blockchain projects or staging ICOs don’t have running or working product in hand. ICOs usually happen in phases and take 6 months to 1 year of time for investment. A lot of things may happen during this time period. A product may not evolve as planned or may fail.

If the project has working product already, it’s a huge plus point. Or even if the product is in alpha or beta phase. It adds legitimacy and ensures future success.

3- What exactly do you want as an end result from the blockchain project?

Be clear on the project requirements, ask if you really need blockchain?  Do you need any additional scrutiny in the smart contracts or the current one is suffice? There are different types of blockchains, private, permissioned and public, if you don’t want your company data out in public, private blockchain is the answer here.

4- What are data integration issues?

One of the major issues enterprise blockchains face is the data integration. Integrating all legacy data formats and their structures, so that the blockchain project participants can use. Healthcare is one such good example here. They have different medical records format in use and a blockchain must reconcile.

5- What are your performance indicators?

Bitcoin and Ethereum manage hundreds of transactions per second and this may sound slow for some enterprises. So before getting on a blockchain, you must know your performance requirements. Bitcoin lighting network and Hyper Ledger Fabric are some solutions for improving performance.

6- What are the legal complications?

Before building a blockchain project, do read the regulations regarding and how they operate in your region. The security and transparency is often the objection but it totally depends on the type of blockchain you select and how you operate your processes through it.

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