For a blockchain project to thrive, it must possess some important elements. The world of blockchain is a highly competitive one and thus requires every firm venturing into it to be up and doing. In a bid to go ahead of others in the industry characterized by massive competition, potential blockchain projects must be enveloped with a vast team, roadmap, idea, token supply, and other necessary features. For the purpose of this article, these features and how they impact the future of a blockchain project will be briefly discussed.
Roadmap of a Blockchain Project
For a blockchain to thrive, it must possess a clearly-defined roadmap. It entails a plan or guide that is geared toward outlining the various steps and development stages of a blockchain project. In most cases, the roadmap of a blockchain network is usually designed before the offical launch of the project. However, there are sometimes that circumstances in the industry may prevail on blockchain teams to alter the plans outlined in roadmaps. Before coming up with a roadmap, developers must consider the nature, use cases, and potential of the project. This will guide them in coming up with a suitable plan or guide for the project. Today, one of the blockchain projects with a commendable roadmap is Ethereum.
Idea
To determine a good blockchain project with more gains, it is important to understand the main idea behind it. Project ideas vary and they go a long way in determining whether a project will attract widespread attention or not. For instance, projects like Ethereum focus beyond virtual money, while the central idea behind Ripple is to build a network that can facilitate cross-border payments. Owing to that, the two networks suit the demand of various users and their acceptance varies. Therefore, investors must study the whitepaper of any blockchain project to understand the central idea behind it. It will help determine if there are any chances for a robust return.Â
Blockchain Team
Also, the team behind a project matters in determining its success. There are various developers in the industry that have invented numerous successful blockchain projects. Investment in projects from this caliber of people, to an extent, poses a chance for good returns. Investing in projects whose developers are relatively unknown or without a good pedigree can spell doom for investors. Developers whose origin and antecedents are not clear can cost investors their fortunes. More so, at their convenient time, the developers can attempt a rug pull and cart away investors’ funds. Thus, investors must carry out good research about the team behind a project before committing their funds in the expectation of a good return.
- Implementation
Further, the implementation of proposed upgrades and partnerships in a project roadmap is also a strong determinant. Blockchain projects whose proposed upgrades and partnerships are swiftly implemented according to schedule stand a good chance of offering huge returns for investors. Timely implementation is a sign of strong commitment from the project team towards its success. Additionally, it reflects how the team is prepared for the growth of the project.
Token Supply
Certainly, the token supply mechanism of a blockchain network usually determines its future potential. Over the years, projects come into fruition with their respective native tokens. These tokens help to power, fuel and coordinate every economic activity on the project. Thus, every project willing to thrive must design a good token supply system to help drive the demand for its native token.
Conclusion
Every investor will definitely want good returns on their investment. Meanwhile, the dynamism of the blockchain landscape can change every existing narrative regarding a project. Investors must always be on the watch from time to time to follow trends in the blockchain sphere. This is due to how a moment can make or mar any project.