These days, blockchain is creating a lot of buzz and it’s becoming easier than ever before to include it as part of a company’s tech stack, or as a central component to an up and coming ICO.
Buzz aside, blockchain is simply another way that structured data is stored. The key difference is that it has a lot of unique features, compared to other databases. Blockchain is a network of interconnected peer nodes that stores a chain of consecutively connected data blocks. Such architecture is called “peer-to-peer” and it is absolutely essential when one or more of the following elements are present in your product:
- The solution relies on data entered by several parties — or several hundreds of them.
- Participants are not known to each other and therefore have not established trust.
- Third-party interference with transactions must be prevented.
- The data must be handled in the most secure manner.
The great thing about blockchain is that all of the data in blockchain is accessible to all users simultaneously, yet no one can make modifications without the knowledge of all of the parties involved. This is how blockchain grows trust in the solution and safeguards transaction permissions. All data inside blockchain is also cryptographically protected. What’s more, the process is transparent and fast because the middleman is excluded. It’s clear to see why blockchain is quickly growing in popularity.
Yet, despite all of the increased attention from the media and businesses, blockchain has not proved to be so useful that it has become mainstream. Right now it’s just a tool that has its pros and cons, which you need to remember if you want to create a startup based on blockchain. By 2025, industry analysts expect blockchain to be fully matured and a mainstream component of the capital market ecosystem. Let’s not forget- this is still 7 years and many billions (if not trillios) of dollars in investment away. In 2018, blockchain may not be the most relevant tech solution for your startup.
If you plan to build a solution that relates to finance, insurance, or transaction exchange of any kind based on peer-to-peer architecture, blockchain is the only way to go. The question is no longer whether blockchain can be developed as more than just the foundation for cryptocurrencies, but how development will happen, and by whom.
Choosing the right blockchain development company for your ICO solution is like hiring a crew to build your new house. Finding the right company to develop the blockchain for your ICO project means looking at core competencies, contractual models offered, and services provided. Let’s discuss these important factors to help you identify which company is most suitable for your blockchain project. Some of these factors include:
Scope of services
Picking the right software firm for your project means picking one that has experience in writing the kind of software you need. Some companies specialize in writing applications and point-of-sale interfaces for Bitcoin. Others only write smart contracts that will run on Ethereum. Starting prices also depend on the depth of their expertise.
Some firms work on various web and software development projects and only occasionally on blockchain projects, so their minimum project price can be around $5000.
Some development companies specialize in cloud, web, AI and blockchain working both with startups and established enterprises. The minimum size of a project they will undertake is $10,000.
At the other end of the spectrum, companies with lots of experience in blockchain technologies focus solely on ICOs and cryptocurrency technologies. They may build advanced applications for healthcare, banking, finance, eCommerce, education, telecom and will likely start working on a project with a minimum starting price of $25,000.
Proven track record
Ask the companies that you are reviewing for recommendations; look for reviews online on websites such as Clutch, Facebook, and Google+. Look at LinkedIn and which of your contacts have the founders of the company in their network and ask them for opinions. Check reviews to get a more holistic understanding of the company.
Language barriers may not be a problem since English is commonly used, but cultural and time zone differences may affect communication. Besides, you want to have a software development company as your partner and problem solver, so they can advise you, not only to write the code. One of the clear advantages of Krusche & Co is that the company has offices in most of the global development centers and we pride ourselves on our customer-first focus.
Being clever with modern tech only goes so far for businesses. ICO entrepreneurs can benefit from partnering with developers with a proven record of success. If you’ve reached this point and you still think that blockchain is right for your ICO, then it’s essential to set your project up for success. If you’re ready, then come and talk to experienced blockchain professionals to decide the best course of action.
About the author: Michael Krusche is the CEO and founder of Krusche Company. With more than 20 years of experience in IT industry, Michael has both a passion and reputation for helping grow businesses through digital transformation. He is especially passionate about blockchain development.