expressed opinion entrepreneur Contributors are their own.
Bitcoin has hit incredible lows over the past few weeks.At the time of writing, it is strange that a cryptocurrency analyst usually wrong Regarding crypto, it is said that it has broken resistance and will head lower.
Some say it might even hit the 20,000 mark. So, it’s fair to say that the interest in cryptocurrencies and the trust in the lunar hype has faded. What hasn’t faded, however, is interest in blockchain.
People today may not be as interested in buying cryptocurrencies as they were a year ago, but most people who were interested in blockchain 12 years ago are still interested in it.
If you are one of these people and think the internet of the future will be built on blockchain, congratulations. You may be right. All signs of Web3 capacity Eating Web2 already exists and it might be wise to start working on this hypothesis.
To plan for the future, you might be interested in building something on the blockchain. It could be a Dapp, it could be a protocol – it could be something entirely new. But since Web3 is still a very obscure concept, and since many people still don’t know what they mean when they refer to it, it’s hard to find a source of what people need to know to build it.
That’s why we’re going to cover some things you should know if you think building on the blockchain is worth your time.
Related: Web 3.0 is coming, and what it really means for you
Do you need blockchain?
This is probably the first question you need to answer. Before you start a very complex business of building a Dapp or protocol, you need to know if it is critical to your business.
If your business requires central authority, speed over security, and doesn’t require a database, auditable history, or a trustless environment, it may be better to stick with legacy systems.
Of course, this means that blockchain is definitely for you if you are looking to build a business designed to be trustless, secure, decentralized and data-intensive.
Personally, the main reason you should build on the blockchain is that you are thinking about building a decentralized and secure business. These are the main comparative advantages of blockchain, and if these are not the cornerstones of your business philosophy, you should probably stay away from blockchain and Web3.Of course, there are other places where blockchain is good, such as privacy and Cost-effectivenessbut they are far less important than decentralization and security.
While blockchain is a breakthrough in computer programming, it is not the answer to all questions. Make sure that using blockchain technology is actually the best approach for your business by carefully weighing the alternatives and not trying to apply it within its confines, not as a “solution to your problem.”
Related: 5 Reasons to Get Started with DeFi
Know your industry and its problems
An important part of building on the blockchain is understanding the solutions that already exist. While you might think you’re building something completely new, it’s important to know if it’s already been built.
This is essential, especially if you are building a Dapp.Now, it’s over 3,000 Dapps on different blockchains. Ethereum alone has over 2,500 Dapps.
For example, if you are building in DeFi, you need to understand that it is probably the most populous industry on the blockchain. That means it has a lot of players trying to solve its most important problems.The biggest solution DeFi needs today is overcollateralization and fluidity.
While great progress has been made in addressing these issues, they are fairly persistent and in dire need of disruption. If you’re building a DeFi Dapp and don’t want to solve this problem, then you have to prepare for the extraordinary grind. Because you’re just one of many dapps solving a minor problem, you’re still fighting for their market share rather than building solutions that will increase market size.
Of course, that doesn’t mean multiple businesses can’t solve the same problem. It just means that one business solves a problem that has been roughly solved by another and may have to take comfort in being a disadvantaged competitor. And another business that solves a new problem will enter a whole new field and will enter a whole new market.
The core question you need to ask yourself is whether you would like to do this, or if you would like to go back to the drawing board to solve the most important problem.
Related: 4 Ideas for Starting a Blockchain Business
you can’t do it alone
You are not building a blockchain, you are building on a blockchain. This means you need two important partners with you.
The first is blockchain. You can build on dozens of viable blockchains, each with their pros and cons.Once you decide which blockchain to build on, you also need to find a technology partner, such as anchor Provides you with the technical toolkit you need to access blockchain infrastructure.
If you know if your business needs to be on blockchain, understand the core issues of the industry you’re building, and have the right technology partners, you’re probably halfway there.
Well, maybe you’re a third of the way through. You still have to build a team, raise money and miss countless sleep nights. But at least you’re on the right path.