The world continues to surprise the public with a constantly-growing number of different projects. One of these marvels is the blockchain, which hosts many successful ventures on the blockchain project ecosystem. But most of these business schemes become inactive because of the problems they were faced during blockchain implementation. The question is: how to start and not to fail in the deployment of decentralized technologies? Below are the issues covered in this presentation: 1. Wrong Statement of Project During ICO/Token Introduction. 2. Wrong Decision on Blockchain Type and Consensus. 3. Wrong Business Model. 4. Profitability versus Cryptocurrency Return. 5. Wrong Market Estimations.

1. The Top 5 Mistakes
in
Blockchain Projects
Implementation
fluence.sh

2. The world continues to surprise the public with a
constantly-growing number of different projects. One
of these marvels is the blockchain, which hosts many
successful ventures on the blockchain project
ecosystem.
Take a look at the following picture for an
understanding of the complete scale of this
development.

3. Blockchain Project Ecosystem

4. Nothing goes as easily as
we would like.
Observe the information below to understand this.

5. Blockchain on Github

6. A well-known fact is that most of these projects are
becoming inactive, with only 8% of them continuing
to function on the market.
Now, you may well ask,
“Why does this happen?”
The answer is very simple: developers repeat typical
mistakes during blockchain implementation of their
projects.
?

7. Here is a list of ten common
mistakes Blockchain project
developers must avoid if they want to
lead their project to success.

8. 1
Wrong Statement of Project During ICO/Token Introduction
Wrong Decision on Blockchain Type and Consensus
Wrong Business Model
Profitability versus Cryptocurrency Return
Wrong Market Estimates
2
3
4
5

9. Wrong Statement of Project
During ICO/Token Introduction
As blockchain technology operates with data through the processing of
tokens, a significant number of blockchain-based projects require the
introduction of tokens, which, in most cases, is followed by an
initial coin offering as the easiest way to obtain investments and gain
capital for further development. At this stage, projects tend to make
several mistakes that can lead to problems in the future.
1 2 3 4 5

10. No Specific Great Mission, Goals,
or Meaning of the Project
A Low Level of Product Development
Insufficient Resource Investment
Lack of Patience and the Fear of Making Mistakes
A Poor Level of Safety

11. No Specific Great Mission, Goals,
or Meaning of the Project
This is the consequence of project developers’ poor attention to important
things like:
➔ a unique vision
➔ a great mission that could unite millions of people
➔ setting goals in perspective
➔ differing from the crowd of other products, and offering something others
don’t. This is what creates user dependence on a blockchain
project.
Any lack of the above-mentioned ingredients of success can lead to the crash
of a project from the very beginning of its existence.

12. TIPS: If you have decided not only to run a blockchain project, but also to
lead it to success, think in depth about its full concept:
★ how to present the project in the best way to the public it is targeted
for
★ Its great mission, which will involve more and more people all over
the world every day
★ the problems it is going to solve, and how useful it is to customers
★ which steps will be the next, after the achievement of basic aims
★ how to establish friendly, long-term relationships with users
And, of course, believe truly in your project. If you don’t,
who will?

13. A Low Level of Product Development
Nowadays a set of demands is imposed by the users.
To provide a successful project, create a credible model across the
ecosystem to recognize unworthy areas where technology has a
purpose.
Smart contracts are said to be one of today’s key technology
investigations. Smart Contracts are a self-executing type of contract.

14. What can they do?
1. They function as ‘multi-signature’ accounts. Money can be spent
only if a required percentage of people confirm the operation.
2. control agreements between users; announce information about
implementing transactions
3. make other contracts utility
4. keep data about an application
5. automate business-process execution
6. create libraries of machine code in the blockchain environment
for platform purposes
7. tokenize data to introduce it for blockchain purposes
?

15. Smart contracts are much easier to create
and implement compared with traditional
contracts.
Look through the graphic to understand the
difference between them.

16. Traditional contracts vs smart contracts

17. Another mistake likely to make a project fail is unprofessional white-
paper development. White papers are great instruments for
establishing trustworthy relationships. They raise awareness and
influence competitors.
Check out this article about the required steps of white-paper
development.
For example, Savedroid — the famous ICO in the field of artificial
intelligence — is said to have one of the most qualitative ICO white
papers. Every chapter is presented in a separate video in the playlist.
So, it is worth following.

18. TIP: To attract user favor, a product
must have professional, high-quality
development of important aspects
like the smart contract and white
paper. It must also meet the demands
of users in order to be friends with
them.

19. If you invest just a tiny bit of effort into the development and
promotion of your product, don’t be surprised that most
contributors to your project will be speculators.
It is crucial to understand that valuable contributors are looking
for something more than just the basic requirements.
Insufficient Resource Investment

20. Development of an ad campaign by itself won’t help to generate
interest from contributors, as the majority of the content is
focused solely on raising money.
Don’t neglect to seek advice from professionals in your chosen
area.
Knock, and someone will open the door.

21. In any case, project developers are facing the problem of
lack of knowledge. As a result, there is an absence of
the only common educational system that could provide
real, high-quality, practical knowledge (not just
theoretical) of blockchain project implementation.

22. TIP: Do you remember the well-known old saying that the miser
always pays twice? It is so applicable here.
★ Do not reduce the amount of time required to think over all
components of your project in order to implement it at the
highest possible level.
★ Do not save money on high-level production for your
project, and a really skilled staff.
★ Do not save money on high-level education. It all will be
covered by your profit very soon.

23. Lack of Patience and the Fear of
Making Mistakes
People are inundated with rapid selling and
buying proposals. This causes an emergence of
short-term trading in contrast to long-term
trading.

24. Short-term trading vs long-term trading

25. However, expectations always bring disappointments. It’s impossible to define
when a specific token will be at the top of its value, and, as a result, when it is
worth selling. Having your own sales plan is very useful. Keep it until the end of
the crypto game.
“The man who begins to speculate in stocks with the intention of
making a fortune usually goes broke, whereas the man who trades
with a view of getting good interest on his money sometimes gets
rich.”—Charles Henry Dow
TIP: The crypto market transfers currency from the
impatient to the patient. So, if you want to succeed, be
careful and patient.

26. The fear of making mistakes haunts us all.
Don’t be afraid of being wrong. People attract
what they think about. Don’t compare your
own start to someone else’s halfway or finish.
Everybody has different skills and gaps.
TIP: Realize that a defeat is the best teacher
ever. The world is always changing, and new
opportunities appear every day.
mistake
+
correction
=
learning

27. A Poor Level of Safety
➔ losing keys
Through carelessness and a lack of awareness, losing keys is one of the
biggest mistakes occurring in blockchain project development.
Under the condition of losing a key, a customer loses access to the coins
he/she possesses. There is no possibility to restore or reset a key, unlike
a password or a PIN code.
Consider this table to discover how many Bitcoins were lost based on
data from November, 2017:

28. How many Bitcoins were lost as for November, 2017

29. ➔ storing coins in online wallets
This creates favorable conditions for stealing cryptocurrency. There are a lot
of famous hacker attacks cases that have led to great monetary loss from
exchange platforms.
➔ no hard copies
As a rule, people don’t keep hard copies of the data. This doesn’t mean just
creating a Word document and repeat a “Ctrl+C and Ctrl+V” action. One
day, the computer might crash, and, as a result, all passwords/important
data could be lost.

30. TIPS:
★ Learn the information about “private keys” and the types of
wallets that are to be used.
★ Double-check that you’re sending currency to the right wallet.
★ Make an investment using an offline wallet. If a transaction
succeeds, the coins would move to the appropriate wallet.
★ Print off vital private information, and store it in a safe place.
★ Use 2fa, or save records of the code.

31. Wrong Decision on Blockchain Type
and Consensus
For now, there are not only different blockchain-based projects, there are also huge varieties of
types and technical consensus.
Consensuses with different sizes of blocks, configurations of nodes, and sequences of node
competition are leading to creation of a new custom or public blockchain. Each of them has
limitations on processing time, scalability, and support of smart contracts and security.
A major share of projects introduces tokens with the Ethereum platform, and later struggles to
evolve the project with the creation of a solution. When they don’t find a solution, they abandon
the project.
1 2 3 4 5

32. It also worth considering other features regarding BC types:
➔ type of development (frameworks like HyperLedger or
Graphene, platforms like Ethereum or NEO, not Turing-
complete environments like Bitcoin or Litecoin, etc.)
➔ languages (unique, like Solidity in Ethereum or Script in Bitcoin;
general, as in HyperLedger, etc.)
➔ infrastructure (existent or required to gain, like consortium
chains on top of Ethereum)
➔ availability of libraries for custom purposes (open to create, like
smart contracts in Ethereum; predefined, like OpenSSL in
Emercoin; or without, as in Bitcoin).

33. Wrong Business Model
1 2 3 4 5
BC is a robust technology that requires a redesign of the business
model. During implementation, teams are trying to invent BC under
business models without changing them, which makes BC useless.
The key benefit of BC from a business point of view is the
elimination of intermediaries, with arbitration features between
producer and customer.

34. For successful implementation, the project team should
consider:
➔ digital transformation of entire markets, with
elimination of any centralized arbitration
➔ platform features for business or peer-to-peer
activities
➔ a level of economic value for the customer; economic
consensus of BC

35. Profitability versus
Cryptocurrency Return
1 2 3 4 5
There are two major issues:
1. It is more profitable to gain cryptocurrency during an ICO
and then wait for prices to increase (more returns).
2. Due to the high volatility of cryptocurrencies, some
projects suffer from a lack of financial resources due to
wrong financial management during implementation,
especially when prices are going down and the time to
unfreeze team reserves does not come.

36. Wrong Market Estimations
Due to smart contract and custom-blockchain immutability after
deployment, some projects wrongly estimate their token economics
and types of incentives for users/nodes. Cryptocurrencies and
tokens have value only due to the economic consensus behind
them, unlike fiat currencies, which have value due to governmental
obligations. Wrong predictions about token economics and
incentives will lead to a significant drop in the economic value of
the token and failure of the project.
1 2 3 4 5

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manage the distributed / decentralized technologies in
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38. fluencefluence.sh
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39. This topic was covered by Applicature.
You can read the whole article here
https://medium.com/applicature/the-top-5-mistakes-in-blockchain-project-implementation-
770b17064d11