How to choose a blockchain development company?
In this article, we’ll see how to choose a blockchain development company for your next blockchain project.
Although blockchain technology is still considered to be an emerging technology, it is becoming increasingly popular around the world.
According to a report conducted by Grand View Research, the global blockchain technology market size was valued at USD 1,590.9 million in 2018 and is expected to grow at a CAGR of 69.4% from 2019 to 2025. From these numbers, it is safe to say that we can expect blockchain technology to play a crucial role in the future of the business world.
However, according to the China Academy of Information and Communications Technology (CAICT), a mere eight percent of the over 80,000 blockchain projects ever launched is still active today. Furthermore, blockchain projects only average a lifespan of roughly 1.22 years.
But if blockchain technology can provide businesses with so many advantages, why do these projects remain short lived?
The answer is simple - poor blockchain development.
A blockchain project needs to be developed with great care in order for it to flourish. A mere bug in your smart contract could irreversibly destroy the entire project and overthrow the company’s reputation.
Many businesses fall into the trap of choosing a subpar developer for their blockchain solutions. This can result in heavy losses and low product quality. There are several things that need to be considered before choosing a blockchain development company that can cater to your needs.
To gain better insights on implementing blockchain in business, this article would be a great guide for you:
Tips on how to choose a blockchain development company
Being a disruptive technology, real-world blockchain applications have garnered the attention of many renowned business leaders, innovators, and technology experts all around the globe. From cross-border payments to digital identity management, blockchain technology has brought transparency, scalability, and resilience across multiple industries.
Even as we speak, blockchain is changing the way global business works. But, how do we become a part of it?
Simply adopting blockchain technology into your business does not make your existing business models operate faster, smarter, and cheaper. For that, you need to partner with blockchain technology experts to design and develop a secure blockchain ecosystem.
The following are a few tips on how to choose a blockchain development company and how to make your blockchain project successful.
- Blockchain Feasibility Analysis
- Finding the right technology expert
- Vendor evaluation
- Vendor portfolio evaluation
- Vendor communication practices
- Do not prioritize low pricing above all else
Blockchain Feasibility Analysis : Formulate a thorough idea about what you want from your blockchain project
In order to communicate your requirements in the best possible way, try to develop a clear understanding of what you hope to achieve with this project. Do your project/product’s objectives really need blockchain technology?
If yes, are you looking to build an application? Or do you want to launch an ICO campaign? By identifying your key requirements, you will be able to choose a company that specializes in what exactly you need.
The best way to do the feasibility analysis is to go for a technology consultation. Discuss your project idea with a prominent blockchain development company and evaluate the feasibility of implementing blockchain in the project.
Doing so, you’ll get an idea of the type of technology, frameworks, tools you want to work with. This will help you find a vendor that can support the technology you have chosen. Depending upon the type of blockchain-based application that needs to be developed, blockchain platforms used vary. Have a look at some of the leading blockchain platforms used to build blockchain applications -
1. Hyperledger Fabric: Hyperledger Fabric is a modular blockchain framework used for building enterprise-grade solutions and applications within a permissioned network. It works using pluggable components, so it supports memberships based on permission. Industries such as healthcare and finance that are governed by strict data protection regulations employ this framework.
Industry Domains — Cross-Industry
Consensus Algorithm — Pluggable Framework
Ledger Type — Permissioned
2. Hyperledger Sawtooth: Hyperledger Sawtooth is a modular and enterprise-grade blockchain framework used for building distributed ledger applications within a permissioned network. It can be used to build smart contracts that are free from the design rules of the core systems.
Industry Domains — Cross-Industry
Consensus Algorithm — Pluggable Framework
Ledger Type — Permissioned
3. Hyperledger Iroha: Hyperledger Iroha is a simple and modular blockchain framework used to build trusted and secure decentralized applications. It is used to build supply chain and IOT based solutions.
Industry Domains — Cross-Industry
Consensus Algorithm — Chain-based Byzantine Fault Tolerant
Ledger Type — Permissioned
4. Tezos: Tezos is an open-source blockchain platform used for building decentralized assets and applications that are capable of upgrading itself. It can be used for applications that are controlled by formal governance and depend on smart contract security.
Industry Domains — Cross-Industry
Consensus Algorithm — Delegated Proof of Stake
Ledger Type — Permissionless
5. Ethereum: Ethereum is a permissionless blockchain platform used for decentralized applications. It is built on a large public support community to that allows digital money and data-friendly services to people all around the globe.
Industry Domains — Cross-Industry
Consensus Algorithm — Proof of Work
Ledger Type — Permissionless
6. Ripple: Ripple is decentralized digital asset exchanges that help banks and payment providers to send digital money all around the globe by means of blockchain technology.
Industry Domains — Financial Services
Consensus Algorithm — Probabilistic Voting
Ledger Type — Permissioned
7. Corda: Corda is an open-source decentralized platform that enables financial institutions to transact directly using secure smart contracts by considerably reducing digital transaction costs, record-keeping costs and helps to streamline business operations in an efficient manner.
Industry Domains — Cross-Industry
Consensus Algorithm — Asynchronous Byzantine Fault Tolerance
Ledger Type — Permissioned
8. EOS: EOS is a blockchain platform used to provide Dapps hosting, decentralized storage of enterprise solutions and smart contract capability. The primary goal of EOS is to tackle the scalability issues of both Ethereum and Bitcoin. It is primarily used for the development of faster and secure decentralized applications.
Industry Domains — Cross-Industry
Consensus Algorithm — Delegated Proof of Stake
Ledger Type — Permissioned
9. Stellar: Stellar is an open-source decentralized asset exchange to transfer digital representations across international borders. It is built to support financial systems within a single network.
Industry Domains — Financial Services
Consensus Algorithm — Stellar Consensus Protocol
Ledger Type — Both Permissioned & Permissionless
10. Hedera Hashgraph: Hedera Hashgraph is a blockchain platform used to build scalable decentralized applications within a permissioned network for multinational businesses. Smart contracts build using Hedera Hashgraph platform can be made dynamic just similar to that of a software solution.
Industry Domains — Cross-Industry
Consensus Algorithm — Asynchronous Byzantine Fault Tolerance
Ledger Type — Permissioned
11. Quorum: Quorum is an open-source blockchain platform used to build enterprise-grade blockchain applications. It also allows us to handle faster digital transactions within a permissioned network.
Industry Domains — Cross-Industry
Consensus Algorithm — Majority Voting
Ledger Type — Permissioned
12. OpenChain: OpenChain is an open-source blockchain platform used to manage digital assets for a business. It allows us to execute digital transactions without any intermediary costs.
Industry Domains — Digital Asset Management
Consensus Algorithm — Partitioned Consensus
Ledger Type — Permissioned
So, a company with a better understanding on the various blockchain platforms can undoubtedly attract clients from different industries with requirements ranging from cryptocurrency exchanges to anti-money laundering systems.
Finding the right technology expert
Proven technological expertise is the prime factor that distinguishes a good blockchain development company from those who claim to be one. You can look at third-party websites that list prominent blockchain development companies. For example, websites like Clutch, The Manifest, and LinkedIn are trusted sources of information on reliable blockchain development companies.
- Conduct thorough background research on the companies
- Evaluate the vendor’s portfolio of blockchain projects
- Evaluate the vendor’s client testimonials
Vendor evaluation
Now that you have developed the requirements and budget for the project, it is time to look into the potential candidates for the development of your solution. Start off with a base list of reputed blockchain development companies. Once you have finalized on the list, conduct some research on each company.
Look through the company’s website to get a better idea about their experience in the field. Cross-check their testimonials and references as well. Taking a look at the project that they have previously worked on can also help you understand their level of expertise.
Vendor portfolio evaluation
You need to look out for companies with a track record of successful blockchain-based project completions. Check out their detailed project case studies to understand how the implemented solution has brought a change in a business or industry. Analyze the framework used in the solution and compare it with the live version. Also, list out the possibilities of future customization that can be brought in the solution.
Moreover, well-explained case studies offer us a chance to rank the companies based on their work quality, coding standards, team capabilities, timely completions, and customer satisfaction.
For instance, prominent technological leaders always keep a base version of the blockchain solution they have developed ready at all times. In case a client with a similar requirement approaches their firm, whether it is Dapps development or crypto-token development. Thus, making it easier for them to deliver perfectly built blockchain solutions within a short time span.
Another factor that distinguishes a company is the level of complexity of the delivered projects. Companies with in-depth industry experts are capable of handling projects from the simplest to the most complex ones. If a company gains enough trust from a client, it paves the way for future partnerships and collaborations.
Vendor communication practices
After conducting the required research, you will be able to develop a shortlist of the top companies that you will consider for your project. It is important to see how these companies carry out communication with their clients. Reach out to the company and get an idea about the platforms they use.
Many companies provide regular updates to the clients throughout the duration of the project. Look for companies that keep you informed about each project milestone. Your feedback should be considered at each step of the way, so make sure that the company you choose prioritizes open communication.
Some of the common communication practices are as follows:
- Faster response to inquiries - Speedy response to inquiries is a much-appreciated factor in the IT industry. Studies show that almost 40% of companies respond to inquiries made through emails, social media channels, etc. within 60 minutes. While 30% of companies respond to inquiries made within 30 minutes or less. Faster response to inquiries demonstrates the efficiency of the staff and well-adjusted communication channels.
- Videoconferencing - In situations, where there are multiple companies involved in a communication process. Then, videoconferencing is the best available option. It helps the clients to personally grade the contacted companies' technological expertise depending upon their ability to provide detailed explanations of each stage in the project development process. Also, video conferencing allows the clients to gather information on the size of the business, working environment, number of employees, and team capabilities.
- Questions asked - For any blockchain requirement to be properly understood, the project manager needs to be familiarized with the assigned tasks and future collaborations. Moreover, the availability of a senior developer would make the project discussion even better.
- Role of developers during project development - Blockchain-based project development can be broken down into numerous stages in a project development life cycle. Whether it is cryptocurrency development or custom blockchain solutions development, blockchain developers need to collaborate with other solution experts of an assigned team for the proper completion of a blockchain solution within the specified time frame.
- The methodology used for project development - Some of the widely used project development methodologies for blockchain development are Agile, Scrum, Lean, Kanban, etc. Handling multiple projects of different clients at the same time can be a tiresome task for a project manager. By using suitable project management models it has become possible to apply different frameworks, working modules, themes, functions, processes, and coding standards to bring a proper structure into the way we deliver our projects.
Do not prioritize low pricing above all else
It is understandable that you would want to save as much money as possible during blockchain development. However, cheap service is not the same as good service. If you want good quality and bug-free solution, choosing the cheapest developer is not the right way to go.
When it comes to pricing, the best approach that you can take is budget formulation. Develop a budget that you can adhere to while looking for a blockchain development company. This can help you choose an affordable development company that can provide you with quality service at the same time.
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